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This is not advice. Items herein are general comments only and do not constitute or convey advice per se. The information contained in these articles is for guidance only and should not be relied upon without obtaining professional advice having regard to your direct circumstances.


Process For a New Employee

Once you have gone through the process of advertising, interviewing and deciding on a new employee for your business there are a few necessary procedures that need to be completed first to meet all your legal requirements as an employer.

1. Agree on a gross rate – hourly wages or annual salary. It is important to specify whether this amount is inclusive or exclusive of superannuation. Also make sure it is understood that this is the amount before tax is taken out.

2. Document the agreement with:

3. Have the employee fill out a tax file number declaration form:

  • You can obtain a form by contacting our office, ordering one from the ATO (either online or by phone) or from selected newsagents.
  • Once it is signed, lodge the form with the ATO and keep a record for your files.

4. Take out a worker’s compensation policy – all employers are legally required to pay workers compensation premiums.

  • Contact one of the suppliers:
    Employers mutual 
  • You will need the following details:
    Business name
    Estimate of wages + super to be paid for the year
    Description of business activity
  • They will set up a cover note and forward forms to you to be filled out. Contact our office if you need assistance completing these.
  • Your premiums will be based on your industry and the amount of annual wages and super paid.

5. Pay your employee the agreed amount less tax:

  • Tax can be calculated from the tax table, a copy of which can be requested from the tax office or by contacting our office.
  • Tax tables can also be downloaded from our website at:    
  • The tax tables are available as either weekly or fortnightly rates, depending on pay frequency.

6. Register with the ATO for PAYG withholding:

  • AFYF can assist you in this or you can contact the ATO and fill in the required form.

7. Request details from your new employee of their super fund:

  • Contact the super fund and set yourself up as a contributing employer
  • Contribute super to the fund on behalf of the employee at the rate of 9% of gross wages each quarter
  • Super is due on the 28th of the month after the end of each quarter
  • The super fund will usually send out forms to notify when employer contributions are due, otherwise these forms are generally available from the super fund’s website.
  • If your employee does not have a preferred super fund, you can add them to your company’s designated super fund.


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