The opportunity to pay income tax in instalments, rather than once per year, was introduced in 1941.
What do you need to know when you hire staff for your business?
Not doing it right can end up wasting a lot of time.
You are the accountant/human resources manager for Oz Clobber, a business that sells Australian-themed clothing largely to tourists. The business consists of a small number of retail shops who generally engage their own part-time staff. Despite frequent reminders, you have found that the managers of the shops do not complete the required paperwork accurately or fully when hiring an employee. This has meant a lot of wasted time as paperwork goes backwards and forwards. You have decided you need to do something to prevent this waste of time, and to ensure the business meets its legal obligations at the point of hiring.
Prepare a flow chart or a diagram with some text that shows the steps each manager should take when hiring staff. The chart/diagram must identify what needs to be done, and include in some way a brief reminder of why it is being done so the manager can explain this to employees.
The following steps will need to be included:
- checking the employee has a TFN, and explaining what needs to be done if the employee doesn't have one
- claiming the tax-free threshold
- setting up PAYG withholding for the employee
- checking other tax details, eg, whether the employee has an accumulated HELP debt or is claiming a tax offset
- checking employee eligibility for super guarantee, which also involves checking the employee's age, hours of work and the amount earned per calendar month
- offering a choice of super fund (as required under the employee's award).
The final product will need to be in a format that is convenient for sending a copy to each manager and can be updated easily when required. You may choose to use bubbl.us to help you prepare and present your work in a creative way.
If you have prepared a digital presentation, share your work in the forum by creating a new topic.