Employee onboarding¶

When a new person starts, there are a few payroll steps to get them set up before their first pay. Doing these steps early means their first pay run goes smoothly and their tax and super are handled correctly.

This lesson walks through the main steps. It draws on guidance from the ATO for tax and super, and from Fair Work for the statements you must give a new employee.

In one line

When someone starts, collect their personal and bank details, get their tax details, offer a super fund choice, give the required statements, and set up their record.

Why this matters¶

Getting onboarding right means your new employee is paid correctly from day one. Their tax details tell you how much tax to hold back. Their super choice tells you where to pay their super. The statements you give them are a requirement under workplace law. Missing a step can mean fixing pay later, which is harder than getting it right at the start.

What you will learn¶

The payroll steps to take when a new employee starts
What tax and super details to collect
Which information statements you must give

Understanding the concept¶

Onboarding for payroll brings together a handful of tasks:

Collect personal and bank details. Get the person's name, address and contact details, and the bank account you will pay their wages into. Fair Work notes that employee records include personal information such as bank account details.
Get their tax details. The ATO explains that each new employee should complete a TFN declaration (tax file number declaration). Their answers tell you how much tax to withhold from their pay.
Offer a choice of super fund. The ATO says you offer eligible employees a choice of super fund. If the employee does not choose one, you request their stapled super fund from the ATO. A stapled fund is an existing super account that follows the person from job to job.
Give the Fair Work Information Statement. Fair Work requires you to give every new employee the Fair Work Information Statement (FWIS) before they start, or as soon as possible after.
Give casuals the Casual Employment Information Statement. Fair Work also requires you to give a new casual employee the Casual Employment Information Statement (CEIS), on top of the Fair Work Information Statement.
Set up their record. Bring the details together into a payroll record so the person is ready for their first pay run.

The next lessons in this topic go deeper on tax details and choosing a super fund.

For accountants & bookkeepers

The ATO notes that under STP Phase 2 the employee still provides tax circumstances via the TFN declaration; STP does not change how that information is collected. You can offer super fund choice before or at the same time as requesting stapled fund details, and you request a stapled fund only where the employee has not chosen one. The FWIS goes to all new employees; the CEIS goes to new casuals as well.

Example¶

Ben hires his first employee, Maria, for his hardware store. Before Maria's first pay, Ben collects her personal details and the bank account for her wages. He has Maria complete a TFN declaration so he knows how much tax to withhold. He offers Maria a choice of super fund, and because she chooses her own fund he does not need to request a stapled fund. Ben gives Maria the Fair Work Information Statement. He then sets up Maria's record so she is ready for her first pay run.

Common mistakes¶

Leaving onboarding until pay day, which rushes tax and super details.
Not collecting tax details, so the right amount of tax cannot be worked out.
Forgetting to offer a choice of super fund.
Forgetting the Fair Work Information Statement, or the Casual Employment Information Statement for a casual.

How this works in myaccountant¶

In the app — you add a new employee and set them up: their personal details, their tax details, their super fund details, and their bank details. Once the employee is set up, myaccountant uses those details when you run pay and lodge STP.

Key points¶

Collect the new employee's personal and bank details.
Get their tax details through a TFN declaration.
Offer a choice of super fund, or request a stapled fund if they do not choose.
Give every new employee the Fair Work Information Statement.
Give a new casual the Casual Employment Information Statement as well.
Set up their record so they are ready for their first pay.

Learn next¶

General information only — not tax, super or financial advice.

Did this answer your question?