Hiring workers for the first time – checklist

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Hiring workers for the first time

If you haven't hired workers in your business before, use this checklist to make sure you're ready.

  • Check that the workers are legally allowed to work in Australia, and whether they will be employees or contractors.
  • Register for PAYG withholding straightaway if:
    • you're hiring employees, because you'll need to withhold tax from their wages
    • you'll need to withhold from payments to contractors – for example, because they don't quote an ABN or have a voluntary PAYG withholding agreement with you.
  • Select a default super fund if you're hiring workers who are eligible for super (most employees and some contractors are eligible).
  • Set up a system to manage payments and keep records of your workers.
  • Register for fringe benefits tax (FBT) if you'll be providing fringe benefits to your employees or their associates.
  • Consider setting up a workplace giving program for your employees.
  • Check if you need to register for payroll tax with your state or territory revenue office. You'll only need to do this if your total payments to employees and certain contractors exceed the threshold in your state or territory.

Starting a new business

If you're just starting out in business, you'll also need to do the following:

Next steps:

Last modified: 22 Feb 2016QC 47988