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Hiring Employees – Your Record Keeping Obligations

Hiring Employees – Your Record Keeping Obligations

Hiring an Employee Checklist

As a business operator, you have four main record keeping obligations when it comes to your employees:

Whether you keep manual records or use a payroll software package, it is important to maintain documentation showing you undertook the following steps ;

  • You have registered for the relevant registration such as
    • WorkCover
    • PAYGW
    • Payroll Tax
    • Super stream
  • You have had each employee fill out and sign a TFN declaration and standard choice form
  • You keep good records on all communications with employees, make sure you have written contracts or saved email correspondence in their permanent file to avoid any miscommunications.

PAYG withholding

For PAYG withholding purposes you must keep:

  • Tax file number declarations (make sure this is filled out correctly and completely) Click here for the TFN declaration form
  • worker payment records
  • payment summaries for employees
  • Annual reports of amounts you have withheld

If you lodge your annual report using paper forms, include the original of each payment summary with your report.  It is a good idea to keep these records for as long as possible (suggested 7 years from government bodies).


You must make super contributions to the correct super fund, by the cut-off dates, for all your eligible employees.

Most employees can choose which super fund they want you to pay into.  You will need to determine if they are eligible to choose:

  • If they are eligible, provide them with a Standard choice form Click here for the standard choice form
  • You will need to keep records showing that you have offered eligible employees the choice
  • If they are not eligible, keep records of why employees have not been offered a choice

Fringe Benefits Tax

A fringe benefit is a non-cash benefit (such as private use of a company car) that you provide to an employee because that person is an employee. Benefits can be provided by you, your associate or by a third party under an arrangement with you.

You need to keep records that show:

  • the taxable value of the fringe benefits
  • where an associate has provided a fringe benefit
  • if any exemptions or concessions apply


Contributed by Alison Eastwood.

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