Employer obligations

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Employer obligations
If you operate a small business you need to know all about your obligations to employees and other people who perform work for you. Under common law employers and employees have certain obligations or duties to each other.

Legal obligations
Your obligations to employees and other workers come from a variety of sources - federal, state/territory laws, industrial awards and agreements, tribunal decisions and contracts of employment (whether they are written or verbal).
Paperwork
Good business records help you manage your business and make sound business decisions. They are also useful if you want to sell your business.
Staff health & safety
As a small business owner you have certain rights and responsibilities regarding health and safety in your workplace.
Taxation superannuation obligations
If your business has employees or contractors then you'll need to know how to meet your tax obligations.
- Determine the status of workers
  The status of your workers for tax purposes is important, as employees and contract workers involve different obligations.
- Fringe Benefits Tax (FBT)
  FBT is a tax payable by employers for benefits paid to an employee or the employee's associate in place of salary or wages.
- Pay As You Go (PAYG) withholding
  Pay As You Go (PAYG) withholding is a legal requirement to withhold amounts for income tax purposes.
- Pay-roll tax
  Pay-roll tax is a state tax on the wages paid by employers. It is calculated on the amount of wages you pay per month.
- Superannuation
  Running a business or employing people is likely to involve superannuation obligations. Most of your employees, whether full-time, part-time or casual, will be covered by the superannuation guarantee legislation.
Insurance
It's your responsibility as an employer to maintain certain insurance, including workers compensation and public liability.