What are an employer's payroll responsibilities?¶

When you employ people, you take on a set of payroll responsibilities. Some come from workplace law, which Fair Work looks after. Others come from tax and super rules, which the ATO looks after.

This lesson lists the main ones so you can see the full picture.

Why this matters¶

Knowing your responsibilities helps you see what each pay run needs to cover. It also helps you understand why payslips and records are part of the job, not extras.

What you will learn¶

• An employer's main Fair Work responsibilities
• An employer's main ATO responsibilities
• Why payslips and records matter

Understanding the concept¶

Fair Work side — pay, payslips and records.

• Pay correctly and on time. Pay your staff the correct amount for the work they do, and pay them at least as often as the rules require.
• Give payslips. Give each employee a payslip within one working day of being paid. It can be electronic or on paper.
• Keep records. Keep accurate time and wage records. These have to be kept for seven years, be clear, and be in English.

ATO side — tax, super and reporting.

• Withhold PAYG. Hold back PAYG withholding (PAYGW) from your staff's pay and send it to the ATO.
• Pay super guarantee. Pay super for eligible employees to their super fund.
• Report through STP. Report each pay to the ATO through Single Touch Payroll (STP) when you run your payroll.
• Keep tax records. Keep the payroll records the ATO requires.

Example¶

Leah employs three staff. Each fortnight she pays them correctly, gives each person a payslip within one working day, and keeps a record of the pay and hours. She holds back PAYG withholding, sets aside super for those who are eligible, and reports the pay to the ATO through STP. That covers both the Fair Work side and the ATO side.

Common mistakes¶

• Skipping payslips — each employee is entitled to one within one working day of being paid.
• Not keeping records long enough — time and wage records are kept for seven years.
• Treating super or STP as optional — both are part of an employer's responsibilities.

How this works in myaccountant¶

Key points¶

• Employer responsibilities come from Fair Work and the ATO.
• Pay correctly and on time, give payslips, and keep records (Fair Work).
• Withhold PAYG, pay super and report through STP (ATO).
• Payslips are given within one working day of being paid.
• Time and wage records are kept for seven years.

Learn next¶

• What is payroll?
• What are an employee's payroll responsibilities?
• Payroll records

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