Hiring your first employee in Australia: PAYG and super
Last reviewed 2026-07-17
Hiring changes your obligations overnight. Before the first payday, get tax, super and award pay rates straight.
1. Register for PAYG withholding
If you pay salary or wages, you generally need to withhold tax and send it to the ATO. Register for PAYG withholding and use the right tax tables or payroll software.
2. Pay super guarantee
Employers must pay super guarantee into eligible employees’ funds. From 1 July 2025 the rate is generally 12% of ordinary time earnings. Confirm the current rate on the ATO site.
3. Check the correct award
Most employees are covered by a modern award. Penalty rates for nights, weekends and public holidays can change your labour budget a lot — especially hospitality and retail.
4. Other must-dos
- Workers’ compensation insurance (compulsory when you employ)
- Fair Work Information Statement to new employees
- Written records of hours, pay, leave and super
- Safe systems of work / WHS basics
Contractors vs employees
Calling someone a contractor does not automatically make them one. Sham contracting risks penalties. If unsure, get advice before you engage regular workers.