Taking on New Employees: Essential Steps for Australian Employers
Hiring new employees is a massive step for any business. To ensure compliance and create a smooth onboarding process, there are several key actions that Australian employers must take. This blog post will outline the essential steps, including the required forms and registrations, to help you navigate the process effectively.
1. Determine the Correct Award
Before anything else, determine the appropriate award for your new employee. Awards are legal documents that outline the minimum pay rates and conditions of employment. Each award covers a specific industry or occupation and applies to employees in that sector. You can find the relevant award on the Fair Work Ombudsman website. For any assistance in determining the correct award for your employees, please give us a call!
2. Register for WorkCover
WorkCover insurance is mandatory for all employers in Australia. It provides financial support to employees who are injured at work. You must register with your state or territory's WorkCover authority. Here are some useful links for each state:
3. Complete the Necessary Forms
When hiring a new employee, you must have them fill out several forms to comply with tax and superannuation regulations.
a. Tax File Number (TFN) Declaration Form This form allows your employee to provide their TFN to you and lets you know how much tax to withhold from their pay. The form must be completed before the employee starts work. Here is the form and instructions
b. Superannuation Standard Choice Form This form gives your employees the choice to select their preferred super fund. As an employer, you must offer a choice of super fund and ensure that contributions are made to the chosen fund. Instructions and form can be found here.
c. New Employee Details Form This form collects essential information about the new employee, including personal details, emergency contact information, and banking details for salary deposits. You can find the form here.
4. Create an Employment Contract
Provide a written employment contract outlining the terms and conditions of employment. This should include job title, duties, salary, working hours, and any other relevant details. If you need any assistance with Employment Contracts, we’d recommend getting in touch with local HR expert Abbey Gough from HR Sorted!
5. Set Up Payroll
Ensure your payroll system is set up to handle the new employee’s salary, tax withholdings, and superannuation contributions. You might want to use payroll software that complies with the Single Touch Payroll (STP) reporting requirements. The software we cannot recommend enough is Xero! Give us a call to get help setting up your account.
6. Induction and Training
Conduct an induction session to familiarize the new employee with your company’s policies, procedures, and workplace culture. Provide necessary training to help them get started in their role effectively.
7. Maintain Employee Records
Keep accurate records of all employees, including their personal details, employment history, tax information, and superannuation details. These records must be kept for a minimum of seven years.
By following these steps, you’ll ensure a smooth onboarding process for your new employees and maintain compliance with Australian employment laws. If you have any questions or need further assistance, feel free to reach out to a professional advisor.
For more detailed information and resources, visit the Australian Taxation Office (ATO) and the Fair Work Ombudsman.
Let us know if you have any questions or need additional support with your hiring process!