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What are an employee's payroll responsibilities?

Payroll is not only the employer's job. When you start work, there are a few details you give your employer so they can pay you correctly and handle your tax and super.

This lesson explains what those details are and why they matter.

In one line

You give your employer your details, complete a TFN declaration, choose a super fund or have one stapled, and keep your details up to date.

Why this matters

If your details are complete and current, your employer can pay you the right amount, hold back the right tax, and pay your super to the right fund. Missing or out-of-date details can cause problems with your pay, tax or super.

What you will learn

  • What you give your employer when you start
  • The TFN declaration and choosing a super fund
  • Why keeping your details up to date matters

Understanding the concept

Give your employer your details. When you start, you provide the details your employer needs to set you up — such as your name, contact details and bank details for your pay.

Complete a TFN declaration. You give your tax file number (TFN) details through a TFN declaration. Your TFN is your personal number for tax and super. Providing it helps your employer work out the right tax to hold back.

Choose a super fund — or have one stapled. Your employer offers eligible employees a choice of super fund. You can choose your own fund. If you do not choose one, you may already have a stapled super fund — an existing super account that follows you from job to job — which your employer can use. If you give your employer your TFN for super, they pass it to your super fund.

Keep your details up to date. If your address, bank details or super fund change, let your employer know so your records stay correct.

For accountants & bookkeepers

An employment relationship link is established when the employer submits a TFN declaration or an STP pay event. Employers must offer eligible employees a choice of fund; where an employee does not choose, the employer can request the employee's stapled super fund from the ATO. A TFN provided for super purposes must be passed to the fund.

Example

Noah starts a new job. He gives his employer his name, contact and bank details, and completes a TFN declaration. He chooses his own super fund and tells his employer which one. A few months later he moves house, so he tells his employer his new address to keep his records current.

Common mistakes

  • Not completing a TFN declaration — this helps your employer work out the right tax.
  • Assuming super sorts itself out — you can choose a fund, or you may have a stapled one.
  • Forgetting to update changes — an old address or old bank details can cause pay, tax or super issues.

How this works in myaccountant

In the app — your employer sets you up as an employee with your details, tax information and super fund, so that when they run a pay run your pay, PAYG withholding and super are worked out from the details on file.

Key points

  • Employees have payroll responsibilities too.
  • Give your employer your details when you start.
  • Complete a TFN declaration for your tax and super.
  • Choose a super fund, or you may have a stapled one.
  • Keep your details up to date so your records stay correct.

Learn next

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

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