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  • Employee – checklist

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    Employee starts

    • If this is the first time you've hired a worker, complete the Hiring workers for the first time checklist before continuing.
    • Ask your employee to complete a Tax file number (TFN) declaration. They can complete this form either
    • If your employee is entitled to superannuation guarantee, check if they're eligible to choose a superannuation (super) fund. If yes, request the employee completes the pre-filled Standard Choice Form through our online services. You'll need to give them
      • employers Australian business number (ABN)
      • employment type (for example, full time, part time, casual)
      • employers default super fund details
        • name
        • unique superannuation identifier (USI) of your nominated super fund
        • ABN
      • a Standard choice form (or equivalent) within 28 days of them starting, so they can nominate their preferred super fund
        • check that the fund they've nominated is a complying fund
        • if your employee gives you their tax file number, you must give it to their super fund the next time you make a payment for them (or within 14 days, whichever is the later)
        • you'll need to set up an electronic system in preparation for reporting and paying your first super contributions in the SuperStream standard.
    • Start keeping records about the employee. You'll need these to meet your tax and super obligations
    • If you'll be providing fringe benefits to your employee or their associates you should be registered for fringe benefits tax (FBT).
    • If you're entering into a salary sacrifice arrangement with your employee, make sure the arrangement is agreed by both parties and preferably documented. You may be liable for FBT on the fringe benefits provided as part of the arrangement

    See also:

    Employee working for you

    Each pay period:

    Each Business activity statement (BAS):

    Each quarter:

    • work out how much super to pay for each employee
    • using the SuperStream standard  
      • report and pay super contributions by the due date (28 days after the end of the quarter) electronically
      • if you don't pay enough super for an employee by the due date, you may have to pay the super guarantee charge.

    Each year:

    • by 14 July – provide a payment summary or income statement to each employee showing the amounts paid and withheld
    • by 14 August – lodge a PAYG payment summary annual report with us (but you can make it easier for your employees if you lodge it as soon as you provide their payment summaries)
    • if you provide fringe benefits to your employees  
      • by 14 July – include reportable fringe benefits on their payment summary
      • by 21 May – lodge your FBT return (if a tax agent prepares your FBT return the lodgment arrangements may be different – your agent will tell you).

    Keep records of all of the above.

    The following may also apply for some employees:

    • If your employee acquires a Higher Education Loan Program (HELP), Student Start-up Loan (SSL),Trade Support Loan (TSL) or Financial Supplement from the Australian government after they start working for you, they must tell you by completing a withholding declaration because it might affect the amount you withhold.
    • The Department of Human Services may ask you to deduct child support payments from an employee's pay  
      • if this happens, you'll receive an employer package telling you what to do
      • child support deductions are not tax amounts, so you don't report them on payment summaries or income statements
    • An employee may ask to change their choice of super fund, if it's  
      • more than 12 months since their last choice you must accept it
      • less than 12 months you can accept it if you wish.
    • If an employee gives you their TFN, you must give it to their super fund the next time you make a payment for them or within 14 days, whichever is the later.
    • If you're a director  
      • you have the same requirements for super guarantee and PAYG withholding as an employee
      • you will be held personally responsible for the business's super and PAYG obligations if they aren't paid.

    You will have other obligations when employing people including preventing unlawful discrimination in your workplace and supporting working parents, people with a disability and those with carers responsibilities.

    See also:

    Employee leaves

    • Work out if any part of your employee's final payment is an employment termination payment (ETP). ETPs are certain lump sum payments that are taxed at concessional rates depending on your employee's age and length of employment.
    • For the part of the final payment that isn't an ETP  
    • For the part of the final payment that is an ETP  
    • Include the details of the entire final payment, both the non-ETP and ETP components, in your PAYG payment summary annual report when you lodge it with us by 14 August.
    • Work out how much super to pay as normal and pay the final contribution by the usual due date (28 days after the end of the quarter).
    • If you provided fringe benefits to the employee, include reportable fringe benefits in their final payment summary or income statement.
    • Keep records of all of the above. Keep your former employee's TFN declaration for the current and next financial year.
    • Ensure the reason and manner your employee leaves complies with anti-discrimination laws.

    See also:

    Last modified: 28 Aug 2019QC 47989