Once you have an ABN, you can start the hiring process straight away. It’s that simple.
When you’re in the early days of growing your business, recruiting the right people can play a huge role in your success. New employees will help bring fresh ideas to the table to improve your product, service and processes. And best of all, their curiosity is contagious. They’ll bring energy, eagerness and excitement that will rub off on you and your team.
Did you know both sole traders and large companies can employ staff? So whether you’re looking to hire a junior personal assistant or a team of senior developers, remember that taking on new employees is process.
Step One: Plan Ahead
• Check to see if you have ticked off all the legal requirements; such as setting up a business name, or registering for GST (if your business is predicted to earn $75,000 or more a year).
• Look around your office. Do you have enough room and resources to let your new employees thrive? Will you supply equipment or will they bring their own?
• Finally, ask yourself if you have the appropriate support system to employ a young worker in Australia. The more you plan, the better the outcome.
Step Two: Know The Law
This can be tricky if you’re a new business owner. But it is essential you know about your responsibilities under the Fair Work Act 2009. This act covers important rules regarding wages, discrimination, superannuation and workplace health and safety. Responsibilities will vary depending on the employee's contract. Variables include:
• Employment status - full-time, part-time, casual, fixed-term contract or contractor.
• Classification and pay rate - junior, middle, or senior level.
• Hours worked - 9am-5pm, project-based or hourly rate.
As an employer, you also play an important role in ensuring your workers meet their tax responsibilities. PAYG stands for Pay As You Go, the purpose of PAYG withholding is to pay income tax obligations on behalf of payees.
This can be achieved by collecting PAYG amounts from payments made to:
• Other workers, including contractors you have agreements with
• Businesses that don’t quote an ABN
A few things to keep in mind:
• You must register for PAYG withholding before withholding a payment
• If you cease to be an employer you should cancel your PAYG registration
If your business needs to register for PAYG withholding get in touch with us!
Step Three: Onboarding
Congratulations, you’ve found your new employee with that little bit of special sauce. Now take time to sit down and introduce them to your business. Explain your long-term dreams and goals, and how their role will make a meaningful contribution to the business. As part of this conversation, identify strategies for your new employee so they can perform to the best of their ability. If a problem arises, don’t panic. There are resources available to assist you. Check out these free courses in managing performance and difficult conversations in the workplace.
Honcho Hint: And don’t forget to pay yourself! You are staff too.
Disclaimer: The above information is general in nature and provided as a guide only.
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