Part 1: Employee starts

The first part of the Employee checklist contains the tasks that you need to complete to meet your not-for-profit organisation's tax and super obligations for when an employee starts.

Is your worker an employee?

  • Check that your worker is an employee – refer to Type of worker
  • Check that your employee is legalExternal Link – they must be one of the following  
    • an Australian citizen
    • a permanent resident
    • a non-citizen with an Australian visa that allows them to work.

PAYG withholding

  • Provide a Tax file number declaration (NAT 3092) to your new employee for them to complete and return to you
  • If your employee has a Higher Education Loan Program (HELP), Trade Support Loan (TSL) or Financial Supplement debt, they must advise you when they complete their Tax file number declaration
  • Complete Section B of your employee's Tax file number declaration
  • Send the completed original of the Tax file number declaration to us within 14 days of the employee's start date
  • Keep the necessary PAYG withholding records.


Fringe benefits tax (FBT)

  • Work out if any fringe benefits will be provided to your employee
  • Check if your organisation can access FBT concessions such as  
    • FBT exemptions (subject to capping) that apply to public benevolent institutions, health promotion charities, public ambulance services, and public and non-profit hospitals
    • FBT rebates (subject to capping) that apply to income tax exempt charities and other rebatable employers
    • exclusions from FBT capping measures for certain types of fringe benefits such as car parking and meal entertainment
    • FBT exemptions that apply to approved worker entitlement funds.
  • Keep the necessary FBT records.

Salary sacrifice arrangement

  • If entering into a salary sacrifice arrangement with your employee, ensure the arrangement is agreed by both parties and preferably documented

Next steps:

See also:

Last modified: 17 Oct 2016QC 46319