What you need to consider when hiring employees

First and foremost, it’s critical that you understand the costs associated with hiring employees. It’s not just making sure that you can cover an extra wage… there are many other costs incurred when you take on staff.

When you are calculating the true cost of employment, you also need to think about…

• Recruitment costs – will you place a job ad or use a recruitment agency?
• Training costs – what time and resources will they need for training?
• PAYG Withholding – as an employer, you are responsible for withholding amounts from payments in order for your employee to meet their tax liabilities.
• Superannuation – you need to pay compulsory employer superannuation contributions.
• Workers compensation insurance – in NSW, it is compulsory to have a workers compensation policy if you employ workers or contractors.

As an employer, you will have a significant amount of responsibility and you will need to make sure you abide by Australian laws. The Government’s Business website has extensive information that will support and guide you through the process, but some of the key aspects you need to be aware of include:

• Adhering to minimum pay rates, terms and conditions
• Providing minimum entitlements in line with the National Employment Standards
• Knowing your tax and superannuation obligations
• Making sure your potential employee has the correct working rights
• Checking that their licence or qualifications meet your industry standards.

While the ideal outcome is that your new employee becomes an integral part of your business, it’s also worthwhile knowing the rules around ending employment, as there are specific guidelines you must follow relating to dismissal, notice and final pay.