Preparing for workers checklist

If your not-for-profit organisation is starting up and engaging workers for the first time, the following checklist is useful for preparing to meet its tax and super obligations:

  • Understand the differences between an employee, independent contractor and volunteer – refer to Type of worker.
  • Register for an Australian business number (ABN) – if your organisation has to do any of the following  
    • register for pay as you go (PAYG) withholding or GST
    • obtain endorsement for charity tax concessions.
  • Register for PAYG withholding – if engaging employees and also need to withhold amounts from payments to independent contractors, labour hire firms and volunteers in certain circumstances.
  • To work out the amount to withhold from payments, either  
  • Register for FBT – if providing fringe benefits to employees or associates of employees.
  • Obtain endorsement to access FBT charity concessions – if your organisation is a charity.

If you have to pay super, you'll need to set up an electronic system in advance to allow you to pay your first super contribution on time, using SuperStream

  • Select a default super fund – if engaging employees and independent contractors who meet the broader definition of 'employee' for super purposes.
  • Register for GST – if GST turnover is $150,000 or more. If GST turnover is less than $150,000, then your organisation can choose to register.
  • Obtain endorsement to access GST charity concessions – if your organisation is a charity.
  • Register for AUSkey – to lodge returns and pay online.
  • Register for payroll tax with the relevant state or territory revenue office – if total wages to employees and certain independent contractors exceed the relevant threshold.
  • Optional – set up a workplace giving program for employees.

Next steps:

See also:

Last modified: 17 Oct 2016QC 46296