Is your business currently understaffed? You may be at the point where you need to take on new staff.
As a business owner, this can be a proud moment for you. Your business is growing. This is always great news, right?
However, in business, every new step forward comes with its’ share of responsibilities.
As an employer, there are a few important tax considerations you need to take into account. Shuriken Consulting CEO Andrew Jeffers talks about the four important things you need to know if you are an employer:
You may also be interested in: March Tax & Accounting Roundup: Things You Need To Know
Check awards for your job offer
Most workplaces in Australia are now covered by awards. These awards apply to employees depending on the industry they work in and their job specifications.
As an employer, it’s important to be up to date with the specific awards available for jobs in your industry.
Is the job you are offering covered for awards?
The best way to get properly informed is to go to your local office of fair trading. The specialists there can assist you in all the things you need to provide for a particular employee.
Tip: The job awards can be state or federal-based. This depends on the job offer description.
Withholding tax for your employees
When you employing a person in Australia, you are required to withhold tax on their behalf. However, not every employee is the same. So, the tax withheld for each of your employees may vary.
How can you establish how much tax you need to withhold for each of your employees?
The ATO (Australian Taxation Office) provides a tax declaration form which your employee must fill out. This form will allow you (the employer) to figure out the amount you need to withhold from your employee’s salary.
Advice: Make sure you sort out how much tax you need to withhold for each of your employees. In case of any issues, the ATO holds you accountable for not having these forms signed off.
You may also be interested in this: Checklist To Get You Ready For Tax Time
Check your employee’s Visa status
As an employer, especially when hiring non-Australian people, you may need to check their visa before signing the contract.
There are various types of Visas:
- 457 Visa
- holiday Visa
- student Visa
When a non-Australian wants to be legally employed in Australia, they need to have a proper employment Visa.
Tip: As an employer, make sure you check your prospective employee has the right type of Visa to legally work in Australia. This will save you a lot of trouble down the road.
Make sure you check your prospective employee has the right type of Visa to legally work in Australia.
Prepare for lack of superannuation details
Superannuation is a government enforced savings plan that provides a safety net for your financial future. As an employer, one of your key responsibilities is to pay your employees their correct superannuation contribution.
What can you do when your employees don’t provide you with their super details?
This is one of many, frequently encountered problems for employers. As individuals can choose their own super fund, it’s sometimes hard to gather all the information needed.
When you don’t have all the super details from your employees you can set up a corporate fund where all the super payments will default.
Tip: It’s illegal not to pay superannuation on behalf of your employees. It’s your responsibility to arrange super on their behalf should they neglect to provide you with details. Just remember – you will be held accountable should payments not be made.
You may also be interested in: Are Multiple Super Accounts A Good Idea For Your Wealth?
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