When everyone is looking to hire the best of the brains around the world, it is more critical to find one. One of the key benefits of establishing and flourishing the business in Australia is easy to access to the educated and multi-cultural workforce.
Not only 40% of the workforce have tertiary education access, but there are also benefits from the Australian education system, an internationally recognized education system. The Australian scientific is a quality and research-oriented system and is available with specialized training services for further overall development.
There is a diverse culture in the Australian workforce which provides a perfect bed for the global companies to expand and flourish. Almost 30% of the workers are born overseas with almost 2.1 million of the countrymen able to speak any Asian language and approximately 1.3 million able to speak the European language.
With Australians, all would receive a complete working knowledge of the Australian payroll system. Also, there is a statutory requirement for businesses to pay all the dues to their employees correctly and on a timely basis. There are government departments that enforce the major dues on the non-compliant employers. These include:
Australian Payroll System is a complete set of knowledge and skills which are exquisite to the payroll functions. It becomes very important to maintain and track an accurate set of records, monitor the payroll changes, and not miss the set timelines.
Most of the accounting software and cloud services & solutions available have the payroll functionality for businesses. With this, they can easily pay their employees. Also, there are companies that can serve as a payroll outsourcing partner.
With these efficient payroll alternatives, the businesses can easily minimize the risk associated with the payroll and avoid the compliance prices.
What are the essentials of Australian payroll compliance?
Let us have a brief look at the essential parameters for the Australian payroll compliances.
Employing staff: The employed staff must be legally allowed to get employed in Australia. All the Australian citizens, Australian permanent residents, and New Zealand citizens are eligible to work in the Commonwealth of Australia. In the case of a visitor, they should possess an appropriate visa with the Department of Immigration and validity period.
Tax File Number: All the eligible employees would have ATO assigned tax file number (TFN) which is unique to each employee. This is necessarily required taxation and superannuation purposes.
Salaries: The employee’s minimum pay rate comes from a bonus: an enterprise agreement. There can be other registered agreements or the national minimum wage which can be found at Fair Work. Also, the payments should be done either weekly, fortnightly or monthly.
Taxation: Tax on wages and salaries, also termed Pay As You Go (PAYG) is deducted from each employee’s wage prior to payment. The PAYG deducted is then paid by the employer to ATO on a monthly basis.
Superannuation: Also termed as super, this is the amount deducted to save for their post-retirement benefits.
Summing up, the payroll compliances are not limited to the factors aforementioned but also are dependent on other factors that would be discussed later.
What is a self managed super fund (SMSF)?