Taking on your first employee is one of the most exciting milestones in any small business — and one of the most paperwork-heavy. Between tax file declarations, superannuation, Single Touch Payroll and award rates, it’s easy to feel like you need a HR department before you’ve even made your first hire. You don’t. You just need to get a handful of things right from day one. Here’s the GGBAS guide to what actually matters.
Before they start: registrations and paperwork
If you’re paying wages, you’ll need to register for PAYG withholding with the ATO before the first pay day. Your new team member should complete a Tax File Number declaration and a superannuation standard choice form, and you’ll want their bank details and emergency contact on file. If they’re covered by a modern award — most employees are — check the correct classification and minimum pay rate on the Fair Work Ombudsman’s site before you agree on wages, not after.
Single Touch Payroll: reporting every pay run
Single Touch Payroll (STP) means you report wages, tax withheld and super to the ATO every time you pay your employee, directly from your payroll software. It sounds daunting, but with the right software set up correctly it happens automatically in the background each pay run. What matters is the setup: the right pay items, the right super rate and the right employment type from the very first pay. Fixing three months of incorrect STP reporting is far more painful than getting it right up front.
Superannuation: not optional, and the clock matters
You must pay super for almost every employee, calculated on their ordinary time earnings, into their chosen fund at least quarterly — and the payment needs to arrive in the fund by the due date, not just leave your account. Late super loses its tax deductibility and triggers the Superannuation Guarantee Charge, which nobody enjoys. Our advice to clients is simple: pay super every pay run, at the same time as wages. Small regular payments are easier on cash flow and the deadline never sneaks up on you.
Budget for the true cost of hiring
An employee costs more than their wage. Add super, workers compensation insurance (WorkCover registration is compulsory once you employ), leave entitlements accruing in the background, and possibly payroll tax down the track as your team grows. As a rule of thumb, budget around 15–25% on top of the base wage. Knowing the true cost before you hire means the hire strengthens your business instead of straining it.
Let us set it up properly the first time
GGBAS sets up payroll, STP and super for small businesses every week — software configuration, registrations, award checks and the first pay runs — so you can focus on training your new team member instead of wrestling with compliance. With 20+ years of experience helping Australian small businesses, we’ll make your first hire the exciting milestone it should be.
Book a free 15-minute financial clarity call before your new starter’s first day.
