Employee Obligation (Australia) Checklist

All employees completed a tax file number declaration.

Superannuation choice offered.

You must offer a choice of superannuation fund.

Super guarantee payments made four times a year.

Most of your employees, whether full-time, part-time or casual, will be covered by the superannuation guarantee legislation. Generally, you have to pay super for your employees if they are:

Aged 18 and over
Paid $450 or more before tax in a calendar month. Employees who are under 18 years old must also work at least 30 hours per week.
Eligible contractors are also entitled to super guarantee payments, even if they have an Australian Business Number (ABN)

If you don't make contributions by the cut-off dates for each quarter, you'll face penalties.

If you are self-employed, you don't have to make super contributions to a super fund for yourself.

Most self-employed people can claim a full deduction for contributions they make to their super until age 75

Difference between contractor and an employee for tax purposes understood.

Understand when a contractor is entitled to super guarantee payments.

Copies of relevant awards for your employees.

Withholding income tax.

Withholding income tax

Under the Pay As You Go (PAYG) system, you're legally required to withhold income tax from your employees’ salaries
You have to withhold an amount from their wages and send it to the ATO
As a new employer, you must register with the ATO before you withhold tax from payments to your employees
You do not need to withhold tax from payments to contractors
But if a worker quotes an ABN, it doesn't mean that they're a contractor. Whether they are an employee or contractor depends on the circumstances of how you engage them, and how the work is performed

The ATO has a checklist to help determine if someone is an employee or contractor

Current workers' compensation policy.

Workers' compensation insurance

Insures employees against injury or death caused in the workplace
Injured workers can receive weekly payments to cover loss of earning capacity, payment of medical expenses and vocational rehabilitation, and assistance in returning to work
As an employer you must:
Maintain a safe workplace
Maintain workers' compensation insurance
Protect yourself and your workers from financial hardship in the event of a workplace injury
An employer who does not have a current policy may be prosecuted and be liable for steep fines, if found guilty of an offence
If a worker is injured, uninsured employers may be held responsible to pay the full cost of compensation
You should have an occupational health and safety policy in place, and all employees should read it before they start working for you

Employers and staff have obligations to ensure a workplace is safe, so it's important to make sure your employees are informed

Written occupational health and safety policy.

Maintain accurate wage records for payroll tax purposes.

Payroll tax

A state tax on the wages paid by employers
Calculated as a percentage of the wages you pay each month
You must pay payroll tax if your total Australian wages bill exceeds the exemption threshold that applies in your state or territory

Your local revenue office can give you more information about the payroll tax rate and threshold that applies to you

Provide pay slips with each employee's pay.

Payslips

Must specify each worker's gross pay, the tax withheld and compulsory superannuation contributions
Requirements vary depending on state or territory legislation or the award you pay your employees under

Payslips fulfil the requirements in your state.

Understand if you provide taxable fringe benefits to employees.

Fringe Benefits Tax (FBT)

A tax paid by employers on certain benefits provided to their employees
Separate from income tax and based on the taxable value of the fringe benefits you provide
If your business provides fringe benefits to employees you need to:
Register for FBT
Understand which benefits are subject to FBT
Keep FBT records
Calculate how much FBT you have to pay
Lodge a return and pay FBT to the Australian Tax Office (ATO)
Report fringe benefits on your employees' payment summaries

Statement of existing employee liabilities if business purchased.

Buying a business

Where you buy a business and keep the existing employees, you may become responsible for any employee liabilities which have accrued up until the date of the sale
Your responsibilities regarding the re-employment of staff should be outlined in the sale contract
It's a good idea to obtain a list of employees from the seller, including their salary and entitlements and copies of job descriptions, employment contracts, and other paperwork
Check out relevant awards, agreements and legislation for a full picture of accrued entitlements such as annual leave, sick leave and long-service leave
Check whether compulsory superannuation payments and workers' compensation premiums have been paid

Employee Obligation (Australia) Checklist

Employee Obligation (Australia)

Obligations