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Business – Preparing to Engage Staff – ATO Help and Resources
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Published on Monday, 31 March 2014 11:10
The Australian Tax Office (ATO) has great resources on its website – especially to help you get it right when employing staff. Here is the first page which includes links to the various topics for more detail. One thing that is missed is a list of the forms you need – we have a special pack with 10 (request more if required, no extra charge) of each of 3 key essential forms and instructions $27 posted in Australia – call 0407 361 596 or email
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for your pack and be compliant!
Preparing to engage workers
If you are thinking about engaging workers, there are a few things you will need to consider and organise to meet tax and super obligations. One thing you must do is make sure your workers are legal – that is, they must be Australian citizens, permanent residents or non-citizens with Australian visas that allow them to work.
Find out more
Employing legal workers
Be aware of employing non-citizens who do not have a work visa.
Employee or contractor
Determine whether your workers are employees or contractors. It is important you know the difference between the two because your tax and super obligations will vary, depending on whether your worker is an employee or contractor.
Pay as you go (PAYG) withholding
When you pay employees or contractors, you may need to withhold tax from their pay and send these amounts to us regularly. You will need to withhold tax from:
Super
You need to pay superannuation for both your employees and for any contractors you are paying primarily for their labour. You need to establish your default super fund. You also need to understand about super choice arrangements.
Fringe benefits tax (FBT)
When you provide fringe benefits to your employees or to their associates, such as payment of school fees, you may have to pay FBT. When you provide benefits to contractors you will generally not attract FBT.
When benefits are provided by an associate of yours or a third party under an arrangement with you, you may also have to pay FBT.
Expenses you can claim
Most of the expenses you incur as a result of engaging workers are eligible tax deductions.
Setting up a workplace giving program
You may consider setting up a workplace giving program to allow your employees to regularly donate to charities.
Remember – for you special pack with 10 (request more if required, no extra charge) of each of 3 key essential forms and instructions $27 posted in Australia – call 0407 361 596 or email
This email address is being protected from spambots. You need JavaScript enabled to view it.
for your pack and be compliant!
Need help? Not sure? Call for FREE 30min advice / strategy session today! Aus +61 407 361 596
and also get FREE “Avoid these GST mistakes” – There’s 18 that the Tax Office see regularly – Get them right!
For more business tips, see www.accountkeepingplus.com.au
