With many businesses gearing up for their busiest period of the year, employing new staff is top of mind. We give business owners some practical tips for hiring new employees.
New employees are a big decision
Ultimate Tax and Advisory Managing Director Bobby Serval said taking on new staff was a big step, no matter the stage of your business.
“Hiring employees is an important step in your business and you want to make sure it is done correctly as there can be serious consequences if you don’t,” he said.
“Whether it is your first or your 12th employee, special attention needs to be paid during the hiring stage to get the paperwork right.
“In particular, directors can be personally liable for the superannuation guarantee charge.”
A starting point for hiring
Bobby said the starting point for any business was to outline the need for the position, duties and hours.
“A recommended next step is to have an employment contract drawn up for the position by a lawyer, who will help you determine the appropriate award and entitlements,” he said.
“Next is arranging insurance, setting up your bookkeeping and then hiring and interviewing for the position.
“Employees should be presented with a welcome pack and everything they need to succeed in the role, as well as ensuring the legal requirements of the contract, payroll and superannuation are understood by everyone.”
Ramifications for failing to meet obligations
Employers could find themselves on the hook for not following the correct procedures.
“It is critical that employers have selected the right award, are following that award in terms of entitlements or taking advantage of vulnerable workers,” Bobby said.
“As a company director, you also become personally liable for your company’s unpaid amounts of pay as you go withholding, goods and services tax and super guarantee charge. The ATO can recover the penalty amounts from you once they issue you with a director penalty notice.
“Understanding your obligations will help set your business, employees and yourself up for future success.”
For future information, refer to our Hiring Employees factsheet here. at Ultimate Tax & Advisory we can assist your business to onboard new employees, add them to your payroll system and set up employees correctly. For more information call 61443370 or email office@ultimate-tax.com.au
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