What are my obligations if I have employees?

The registration process for employees should follow a certain number of steps:

  1. Do due diligence before the employee starts as the individual must be legally allowed to work in Australia
  2. Decide the type of employment (employee or contractor). If they are an employer, you are required to withhold amounts (PAYG). PAYG withholding is not required unless the contractor enters a voluntary agreement.
  3. Ensure the employee has filed a tax file number declaration form and submitted this to you. This can be done via MyGov, electronically or they can print and fill the form.
  4. Eligible employees must receive contributions to a superannuation fund. They may wish to nominate a super fund and will need to complete a standard choice form within 28 days of commencement. If the super find is provided by the employee in the TFN form, share it with the super fund for the next payment or within 14 days. You’ll need to set up an electronic system in preparation for reporting and paying your first super contributions in the SuperStream standard.
  5. Brief the employee on Occupational Health & Safety (OHS) within the workplace and their obligations
  6. Record employee payroll through Single Touch Payroll (STP). Employers may use STP-enabled payroll software or use a third-party software provider.
  7. Register for Fringe Benefits Tax (FBT) if required
  8. Check if payroll tax registrations are required (total wages exceed the state limit)