The steps you need to take to employ your first employee

Employing your first employee can be both exciting and overwhelming. However, with the right process and knowledge, you can ensure a smooth transition for both you and your new team member. Here are some steps you need to take.

1. Determine the type of employment

Decide whether you want to hire a full-time, part-time, or casual employee.

2. Create a job description

Outline the duties, responsibilities, and qualifications required for the role.

3. Advertise the job

Post the job on various job boards, social media, and your company website.

4. Conduct interviews

Shortlist candidates and conduct interviews to find the right fit for your business.

5. Make an offer

Once you have found the right candidate, make a job offer and provide them with an employment contract.

6. Set up employee records

Keep records of your employee's personal details, tax file number, and superannuation details.

7. Register for PAYG withholding

You will need to register for Pay As You Go (PAYG) withholding with the Australian Taxation Office (ATO) to withhold tax from your employee's wages.

8. Set up payroll

Set up a payroll system to manage your employee's wages, tax, and superannuation contributions.

9. Pay wages

You are required to pay your employee at least the minimum wage, as set by the Fair Work Commission. You must also provide payslips within one working day of payday.

10. Report payroll

Report your payroll each pay run with the ATO using the single touch payroll (STP) system.

11. Pay superannuation

You are required to pay superannuation contributions on behalf of your employee. The current superannuation guarantee rate is 11.5% of your employee's ordinary time earnings. You must make contributions at least four times a year, by the quarterly due dates. This changes from 1 July 2026 to require contributions to be paid following every payrun.

12. Comply with workplace laws

Ensure you comply with all workplace laws, including providing a safe working environment, adhering to the National Employment Standards, and following any relevant industry awards or agreements.

Employing your first employee is a significant milestone for your business. By following these steps and ensuring you meet all legal obligations, you can set yourself and your employee up for success. You may require assistance for some or all of these steps from a lawyer, a bookkeeper or your accountant / tax advisor.

Please contact us if you require assistance or advice at any point.