Know your employer obligations: A cheat sheet for hiring staff
Hiring your 1st (or 10th) employee? That’s a huge milestone — congrats!
Over here at Cameo Bookkeeping, we love seeing small businesses grow and take that exciting next step.
But between onboarding, daily operations, and wearing ten other hats, one thing that can easily get overlooked is your employer obligations.
And knowing exactly what those are can help you avoid some of the common pitfalls we’ve seen other businesses fall into. From your payroll to your record-keeping, it certainly pays to get it right — it’s good business practice… but also the law.
So, here’s a cheat sheet we’ve put together to walk you through your key responsibilities as an employer, from the moment someone joins your team to when they move on.
Before they start: get your ducks in a row
There’s a bit of prep work before your new employee even clocks on.
What you’ll need to sort:
- Fair Work statements: Every new employee must receive the Fair Work Information Statement (FWIS). If they’re casual, they also need the Casual Employment Information Statement (CEIS). And if they’re on a fixed-term contract, they get a version tailored to that too.
You can browse your Fair Work starter documents here. - Tax File Number (TFN) declaration: You’ll need this to withhold the correct amount of tax from your employee’s pay. If they’ve applied for a TFN, they have 28 days to provide it. If they don’t provide a TFN within that time, you must withhold tax at the top tax rate plus Medicare.
Need more info? Head to the ATO site. - Super fund details: You must give new employees a Standard Choice Form so they can nominate their preferred super fund. If they don’t make a choice, you’re required to request their stapled super fund — an existing super account that’s linked to their employee details and follows them from job to job — from the ATO.
Learn more and request a stapled super fund here. - Bank details: No bank info = no pay run. Employees can choose to split their wages across multiple accounts.
Identification: There’s no one-size-fits-all rule here, but a lot of employers use the 100-point ID check as a standard for verifying new hires. It usually includes at least one primary form of ID, like a passport or driver’s licence.
While they’re working for you: keep it clear and compliant
Once someone’s officially part of your team, the admin continues.
What you need to stay on top of:
- Pay slips: You must provide a pay slip within one working day of payment (even if the employee is on leave). It can be digital or printed, and must include your business name, ABN, employee’s name, pay period, date of payment, gross and net amounts, super, and any loadings or allowances — check here for a full list of requirements.
- Time worked: Keep track of all hours worked — especially overtime, including start and finish times.
- Leave balances: Document all leave taken and what’s remaining. It’s not mandatory to show balances on pay slips, but it’s good practice and helps avoid confusion.
- Super contributions: Track the amount paid, dates, the fund it went to, and the reason for the payment. You’ll find more on how to handle super contributions over on the ATO’s site.
After they leave: don’t skip these final steps
Saying goodbye to a team member? You’ve still got a few jobs to do.
- Written notice of termination: Unless you’re letting someone go for serious misconduct, written notice is required. It must clearly state the final day of employment and how the notice will be handled.
- Final pay: This must include any unpaid wages, leave entitlements, redundancy pay (if eligible), and time off in lieu.
- Termination records: You’ll need to document how and why the employment ended and keep that on file.
Fair Work breaks it all down for you here.
About your record-keeping responsibilities…
You’re expected to hold onto key employment records — like pay, hours worked, super, leave, and the details of when someone joined and left your team…— for at least 7 years.
And yes, ticking boxes and filing paperwork may not be the most exciting part of running a business. But it’s the part that keeps you out of hot water.
When things don’t go to plan — whether it’s a pay dispute, a Fair Work audit, or just the constant spin of running your own show — you’ll be glad you kept those records.
They’re your proof you’ve done the right thing. They protect you from costly mistakes. And they help you sleep at night knowing you’re covered.
Final words
We know… there’s a lot to keep track of when you bring someone onto your team.
That’s why a big part of what we do here as bookkeepers is helping small businesses like yours stay on top of the behind-the-scenes admin — the stuff that keeps things compliant and running smoothly, without eating up your time.
Whether you need help setting up systems, understanding your employer obligations, or just want to stop second-guessing if you’re doing ‘it’ right — we’re always happy to jump in. Simply reach out.