FAQ

1. Understand Employer Obligations:
   • Familiarize yourself with the Fair Work Act 2009, National Employment Standards (NES), and any relevant Modern Awards or Enterprise Agreements that apply to your industry or workplace.
2. Register for PAYG Withholding:
   • Register for Pay As You Go (PAYG) withholding with the Australian Taxation Office (ATO). This is necessary for withholding tax from your employees’ wages.
3. Get Workers’ Compensation Insurance:
   • Obtain workers’ compensation insurance to cover any work-related injuries or illnesses. This is mandatory in every state and territory in Australia.
4. Check Working Rights:
   • Verify that your employee has the legal right to work in Australia. You can use the Department of Home Affairs’ Visa Entitlement Verification Online (VEVO) service for this purpose.
5. Prepare Employment Contracts:
   • Draft a written employment contract outlining the terms and conditions of employment, including job title, duties, salary, hours of work, and leave entitlements. Ensure the contract complies with the relevant employment laws.
6. Set Up Superannuation:
   • Choose a default superannuation fund and set up superannuation contributions for your employee. You must contribute at least 11% (as of July 1, 2023) of their ordinary time earnings to their superannuation fund.
7. Maintain Employee Records:
   • Keep detailed records of your employee’s personal details, employment history, hours worked, wages paid, leave taken, and superannuation contributions. These records must be kept for at least seven years.
8. Provide Pay Slips:
   • Issue pay slips to your employee within one working day of paying their wages. Pay slips must include specific information such as gross and net pay, PAYG withholding amounts, and superannuation contributions.
9. Set Up Payroll System:
   • Establish a payroll system to manage employee payments, tax withholdings, superannuation contributions, and other deductions. This can be done manually or using payroll software.
10. Ensure a Safe Work Environment:
    • Comply with occupational health and safety (OHS) regulations to provide a safe working environment. Conduct risk assessments and implement safety policies and procedures.
11. Understand Leave Entitlements:
    • Ensure your employee is aware of their leave entitlements under the NES, including annual leave, personal/carer’s leave, and parental leave.
12. Report New Employees to the ATO:
    • Notify the ATO of your new employee by submitting a Tax File Number (TFN) declaration form. This can be done online or via paper form.
13. Provide Fair Work Information Statement:
    • Give your new employee a copy of the Fair Work Information Statement, which outlines their rights and entitlements under the Fair Work Act.
14. Consider Additional Obligations:
    • Depending on your business and industry, there may be additional obligations such as industry-specific licenses, training requirements, or adhering to child protection laws if employing minors.

By following these steps, you’ll ensure compliance with Australian employment laws and provide a solid foundation for your new employee’s role in your business. Consulting with an employment lawyer or HR professional can also help ensure you meet all legal requirements and best practices.

NOTE:  We have a 1-page Quick Guide to employing your first employee. Scroll to page 9 to review. We could use it as the alternative to the above ChatGPT generated text copy or prepare it as a 1-page download for your clients?