Your guide to hiring staff for your small business

Creating and agreeing upon new employee forms for onboarding staff is an essential (and often legal) requirement of all employers. The forms you’ll require are:

Employee Agreement
An employee agreement is an essential document necessary for every new employee. Each employee agreement needs to, at the very least, comply with the legal requirements laid out by the Australian Government, as stipulated by the Fair Work Ombudsman.

ATO new employee forms
As for the Australian Tax Office, your new employee will have to fill out the below. These payroll and STP related forms are available online through the ATO and will link with your new employee’s MyGov account for ease and accuracy.

• tax file number declaration
• superannuation (super) standard choice
• withholding declaration
• Medicare levy variation declaration

Fair Work Information Statement
On top of ensuring that your new employee agreement conforms to the letter of the law, you’ll also need to provide your new employee with a Fair Work information Statement. This statement includes awards, employee rights, termination rights and other information necessary for a new employee to understand how they can be legally treated and what recourse they have if they feel their employment rights have been violated. This is a mandatory requirement of all employers.

There are a few key personality traits or qualities that should be prominent in any good team member.

TIP: When interviewing, on top of core competencies, make sure you create questions and ask for examples that unearth the following traits of a good team member.

1) Honesty

Openness, honesty, integrity, and forthcoming attributes are a fundamental necessity in any employee. You’re trusting this person with your business; their honesty is essential.

2) Reliability

You’re trusting your businesses’ future to these people. They need to show up and perform. Be sure you’re hiring someone reliable.

3) Positivity/Optimism

A positive attitude breeds positive results. Team cohesiveness, great work attitude and a drive to succeed all stem from a positive outlook. Nobody wants a negative, low energy downer on the payroll.

4) Empathy

The ability to empathise with clients, team members and the public is paramount to a business and is absolute gold when it comes to customer service and communication.

5) Flexibility

Roles change, new tasks appear, and different directions can crop up in any business model. You’re going to need flexible team members that can go with the flow and adapt to changing conditions and responsibilities.

When you’re hiring for and building a team, pay close attention to the traits of a good team member and the types of personalities at work. It’s not just about experience.

Missing payroll deadlines
Missing a payroll deadline is an entirely avoidable payroll mistake which, frankly, should never occur. You should have a regular pay run calendar and agreed upon pay schedule which lays out exactly when your employees should be paid. You have a choice to pay employees either weekly, fortnightly, or monthly, however you may not exceed one month.

• Your payroll schedule should also be understood by your employee and laid out in any employee agreements.
• To avoid any possibility of missing a payroll deadline, simply set up automatic payments through payroll software, such as Reckon One.
• Be sure you issue a pay slip no more than one day after paying an employee.

Lack of confidentiality
Payroll data and pay slips contain sensitive and confidential information. It’s your responsibility to safeguard this payroll information while avoiding undue access from third parties.

• Make sure your workplace, files, and devices are secure.
• Limit access to payroll software and data to only those who require it.
• Properly handle any disposal of information.

Misclassifying employees
Another easily avoidable payroll mistake is the misclassification of employees. This should never occur. When embarking on a recruitment drive for your business, be clear whether you’re hiring a full-time employee, casual staff member or a part-time employee etc.  There are differing Awards considerations, employer responsibilities, leave entitlements and payroll tax implications depending on which type of employee you hire. In Australia you can hire:

• full-time
• part-time
• casual
• fixed term
• shift workers
• daily hire and weekly hire
• probation
• apprentices and trainees
• outworkers

Check in with the Fair Work Ombudsman if you’re unsure of employment types and the related minimum employee expectations, especially when it comes to payroll.

TIP: If your employees aren’t on a salary, or you need to calculate overtime, it’s wise to deploy time tracking software to ensure accuracy in hours worked.

Payroll deduction mistakes (PAYG)
PAYG (pay as you go) deductions are an essential part of remunerating your employees and withholding tax on their behalf for the ATO. Ensure you have PAYG setup (without error) for every employee on your books. PAYG is easily managed through payroll software, so be sure you invest in a solid solution to avoid any potential payroll tax mistakes. Remember:

• Be sure you register for PAYG before you start paying employees.
• Be sure to deregister from PAYG the moment you cease to be an employer.
• Avoid manual payroll processes where possible.
• If you do make a payroll mistake, such as failing to withhold PAYG, read the following Fair Work advice.
• Before processing PAYG or entering into an employee agreement, check that the worker is legally permitted to work in Australia.
• Be aware that PAYG withholding is distinct to payroll tax, which is a state-based tax.

Payroll set up
Another common payroll mistake can be found in your payroll set-up. Make sure, regardless of your chosen payroll software, that you set it up without error. Double check and then triple check you’ve entered every detail into your payroll software correctly and in full. Check all the personal details for your every employee including their TFN, name, bank account details, pay rate etc.

Setting up STP
STP (single touch payroll) is a relatively new introduction to the Australian tax scene, which requires all employers to automatically submit payroll information to the ATO through approved software such as Reckon One. It’s now a requirement for you to submit STP simultaneously each time you pay your employees, within a payroll software solution. Ensure you don’t make this payroll error by submitting STP through an accounting solution every pay run.