19th August 2020 | Business
Things to consider before hiring staff.
As a lot of business owners do not realise the complexity and compliance obligation of hiring an employee in your business.
When hiring staff, you need to understand the obligations of the below listed:
- PAYG (Withholding tax)
- Single Touch Payroll (STP)
- Workcover Insurance
- Payroll Tax
- Fringe Benefit Tax (FBT)
- Director Penalties notice/liabilities
- Visa status
- Fair work- Minimum wage
- Work safe
- Contract agreements
We tend to find clients jumping into hiring staff too early without understanding the compliance, additional paperwork and the extra cost.
Our first advice to a business is to review the business model and cash flow to see if hiring an employee is necessary. We don’t want to fall into the trap of paying your employee more than yourself or hindering the growth of the Company. You can consider alternatives such as partnerships, contractors or equity payment as well.
Talk to us to see if your business is ready for employees and if your accounting software is set up for it.