Successful international expansion depends on making the right moves from day one. This is vital for foreign companies establishing a presence and operating payroll in Australia – one of the strongest Pacific Rim economic powers alongside China, South Korea and Japan and other nations in the Trans-Pacific Partnership. Bradford Jacobs’ Professional Employer Organization (PEO) and Employer of Record (EOR) platforms provide complete answers to every question your company will face before your planned move into the Australian economy.
We aim to make business expansion easy. At Bradford Jacobs, we navigate the administration of the Australian payroll system for you, and we also make the returns and associated payments for income tax and social security contributions directly from our payroll system to the local tax authorities. We do the work, so you do not have to. When expanding into a new country, you may encounter some challenges regarding payroll, but allow us to take the reins and answer any of your questions and concerns with our trusty guide on payroll for Australia.
What Australia Payroll Options are available for Companies?
Remote payroll – This option allows businesses to operate under a single payroll system, by adding employees in Australia to your parent company’s payroll. However, these employees must operate under different regulations, which is likely to cause problems. Internal payroll – You may operate payroll for your subsidiary, especially if you are committed to growing your company’s presence in Australia. However, this does require hiring dedicated HR staff who understand Australian employment and compliance laws.
Australia payroll processing company – If you are considering outsourcing, then working with an Australian payroll company will help in processing your payroll – but not when it comes to compliance. Australia payroll outsourcing – However, there is another option available that solves both concerns – by working with Bradford Jacobs. We can handle payroll and compliance for all your employees in Australia. We take the administrative stress off your shoulders so you can focus on what you do best.
Australia Payroll Services
Companies expanding their operations into Australia open up a wealth of opportunities for expansion throughout the Pacific Rim nations and worldwide – but challenges come alongside the potential benefits. Payroll management is among those challenges, whether your company is considering moving employees abroad or hiring new staff in-country. Employment laws, payroll and income tax regulations are areas where you cannot afford mistakes. Bradford Jacobs’ Employer of Record (EOR) payroll solutions will navigate around these potential pitfalls effectively and efficiently by putting into action our comprehensive knowledge of tax and payroll rules.
Paying staff in Australia, either locals or foreigners, demands complete understanding of the employment and taxation regulations. This is complicated in Australia as they can vary between different states, in addition to the effect of ‘enterprise’ or collective agreements.
Outsourced payroll services in Australia will deal with the following:
- Remitting payments for income tax via Pay As You Go (PAYG) and Fringe Benefits Tax (FBT) to the Australian Tax Office (ATO). Thresholds and rates may vary between states.
- Employers paying a full-time, part-time, or casual employee more than AU$450 (€290, US$326) regular earnings per month must pay superannuation towards their pension. The minimum Super Guarantee (SG) is 10% of their earnings and is expected to be 12% by 2025. The SG contributions also apply to employees who are temporary residents of Australia. Employees can choose their own ‘super fund’ or take the employer’s default fund.
- Registering with Centrelink for social security support, which is generally restricted to Australian citizens and long-term residents and funded from general revenue rather than by employer and employee contributions. Filing tax returns within four months of the end of the tax year, which runs from July 1 to June 30 of the following year
- Remitting withheld taxes from employees’ salary to the Australian Tax Office (ATO)
- Creating employment contracts
- Creating pay slips and calculating monthly salary and income tax contributions to be remitted
Additional payroll support includes:
- Reconciling federal, state, territorial and municipal taxes to assess for refunds or extra payments
- Creating payment schedules for salaries
- Ensuring accurate personal income tax returns are filed for your employees, where required
The above checklist highlights why the vast percentage of foreign companies expanding into Australia’s strictly regulated business environment hand their payroll to EOR providers such as Bradford Jacobs. By outsourcing payroll your company complies with tax and employment regulations without risking sanctions or financial penalties for late or incomplete filing. You focus on your goals and expansion, free of any concerns over payroll. Questions? We have the answers. Contact Bradford Jacobs now.
What is required to set up Payroll in Australia?
Foreign companies establishing their presence in Australia must satisfy strict legal requirements with running payroll, in addition to complying with minimum wage, overtime pay and other employee benefits and entitlements. Businesses looking to set up a legal entity in Australia to run their own payroll must take the following steps:
- Select a company name that does not conflict with existing companies
- Decide on which type of company to be incorporated, as a subsidiary or branch; a company limited by shares or by guarantee, an unlimited company or a no liability company (generally restricted to the mining sector)
- Register with the Australian Securities and Investments Commission (ASIC)
- Register with the Australian Tax Office (ATO)
- Obtain a Tax File Number (TFN)
- Register for Pay As You Go (PAYG) taxation and Goods and Services Tax (GST)
- Register for an 11-digit Australian Business Number (ABN) to interact with the ATO and other legislative bodies