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Hiring Your First Employee

What You Need to Know - About Hiring Staff

Hiring your first employee can be daunting - we have spelled out the process to help support your business growth to encourage a successful transition for you and your team.

What is an employee

Being an employee, you are solely working for someone. You should apply to the Australian Taxation Office for a Tax File Number (TFN). Being an employee, you may be paid for leave, holiday pay, super and work cover.

When you start working as an employee, you have rights and obligations.

While you're working, your Employer will deduct tax from your pay and send it to the Australian Taxation Office (ATO). They may also pay superannuation contributions on your behalf.

Employers will report your income, tax and super information. (Single Touch Payroll (STP).

    Work Cover...

    You have a “duty of care” legal responsibility. Duty of Care means you:

    • Provide a safe working environment
    • Facilities are well-maintained
    • Provide workers any information, training, instruction or supervision needed for their safety
    • Register any injuries
    • Maintain a workers' compensation policy and a return to work plan.
    • Understand employment-related legislation and your
    • While complying with your responsibilities is essential so that your business stays within the law, it also helps keep staff morale high and reduce staff turnover. Keeping your employees happy and safe can also serve to improve the overall image of your business.


    PAYG or “Pay As You Go” is the terminology of deducting tax from an employee and paying it to the ATO. Employers have a legal responsibility to:

    • Register for PAYG withholding
    • Single Touch Reporting
    • Payment summaries to employees and yearly notification to the ATO

    Payroll tax Weekly Australian salaries are more than $21,153 must register for payroll tax with the Office of State Revenue.

    What is WorkCover? 

    Employer legal responsibility insures employees against work-related injuries with Workers Compensation.

    Your policy covers any workers you employ as defined in the Workers' Compensation and Rehabilitation Act 2003.

    hiring employees

    Employee contracts 

    Employee contracts are agreements between an Employer (owner of the business) and an employee (staff). Wage agreement negotiated at or above the legal minimum wage.

    Fair Work can assist you with an employment contract tool.

    What is an Award?

    An award is a minimum set by the government that an employer may pay an Employee.

    Employer rights and responsibilities

    • You must be aware of terms and conditions of employment, set by an award, registered agreement, and employment contract per the National employment standards.
    • Employers need to keep accurate records, time and wage records for all employees.
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