Hiring Your First Employee? Here's What You Need to Know
Hiring your first employee is a milestone. It means your business is growing — but it also means you're now responsible for getting payroll right. In Australia, that means navigating award rates, tax withholding, superannuation, payslips, and reporting obligations.
Get it wrong, and you face penalties from the ATO and Fair Work. Get it right, and it becomes a predictable, automated process that takes minutes per pay run.
This guide walks you through everything step by step.
Before You Pay Anyone: The Setup Checklist
Before your first pay run, you need to tick off several legal and administrative requirements:
1. Register as an Employer with the ATO
You'll need to:
- Register for PAYG withholding — this allows you to withhold tax from employee wages and send it to the ATO
- Get a withholding payer number (WPN) — issued when you register