Businesses hiring Employees must meet Government requirements related to their working conditions, pay and record keeping.

PAYG Withholding

Once a Business hires their first Employee, they are required to withhold taxes from their pay. The first step prior to hiring their first Employee is to register for PAYG Withholding with the ATO. Under the PAYG Withholding, a Business must withhold amounts from all employee payments. Withheld amounts must then be reported and paid to the ATO by lodging Activity Statements.

Employee Records

All new Employees must be provided with 3 standard documents at the start of their employment. These are:

• Tax File Number Declaration                  > determines the amount of taxes to withhold from their payments;
• Superannuation Standard Choice Form    > advise the employer of the employee’s choice of Superfund;
• Fairwork Information Statement             > informs employees about their workplace rights and entitlements.

The Tax File Number Declaration and Superannuation Standard Choice forms must be filled out by the Employee and returned to the Employer within 28 days from the start of their employment. Employers must also provide evidence that these forms have been given to the Employee at the start of employment. The Tax File Number Declaration must then be lodged to the ATO.

It is also advisable for Employers to provide employees with:

• Employee Forms              > to gather additional employment details;
• Employment contract       > to outline the employment agreement between the two parties.

Finally, Employers must also issue payslips to each Employee within one working day of their payday. Employers who wish to issue payslips by email must obtain written consent from their Employees.

Employee details are then added to KeyPay to process pays, issue payslips and pay superannuation.

Create a new Full-Time or Part-Time Employee

1. Go to Employees > Lists
2. Click on [Add Employee]
   
   è  The Add a New Employee screen opens
   
   
   
   
3. Enter the new Employee's personal information
4. From Employee Notifications select: Email
5. To turn on KeyPay Self-Service Portal select: Yes
6. Click on [Next]
   
   è  The Employment Details screen opens
   
   
   
7. Select the following Employment information:
   • Award | Employment Agreement | Pay Rate Template > Select one of these options based on the KeyPay settings and the Employee's Agreement
   • Start Date > Enter the Employee's Start Date
   • Employment Type > Select the Employee's Employment basis (Full-Time, Part-Time, Casuals...)
   • Primary Location > Select the Employee's main Location / Department
   • Pay Schedule > Select the Employee's Pay Schedule
8. Select/Enter the pay rate arrangements:
   • Pay rate > If you have selected an Award and/or Employment Agreement, the pay rate assigned to the relevant Award / Agreement will automatically pre-populate (however, you can still amend this rate). If you selected: Pay Rate Template > Manually set rate, type the Employee's Pay Rate
     Note: the pay rate can be set per hour, day or year
   • Hours per week > type the agreed hours per week as per the Employment Agreement
     Note: for Casual Employees type the average of hours the Employee is expected to be paid per week
   • Standard Hours Per day > either leave the standard hours or amend this field as per agreed Employment Contract
   • Leave Allowance Template > Select either the Permanent or Casual Leave Template applicable to the relevant Employee's State of residence
   • Timesheets > Select: Use timesheets
9. Click on [Next]
   
   è  The Banking & Super screen opens
   
   
   
   
10. Type the Employee's Bank Account details
11. Click on Choose super fund and search for the Employee's fund
12. Select the Employee's fund and enter the Employees' fund membership number
13. Click on [Next]
    
    è  The Tax File Declaration screen opens
    
    
    
    
14. Select/Enter the following details:
    • Tax File Number > Type the Employee's Tax File Number
    • Tax Calculation Options > Click on the pencil icon and select the Employee's Tax options as per the Employee's TFN Manual form
    • Date Signed > type the date the Employee signed the TFN Manual Form
15. Select Lodge with ATO
16. Click on [Done]
    
    è  The Employee complete screen confirmation is displayed