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.
