6 Compelling Reasons to Consult Your Accountant before Starting a New Employee
Hello everyone, it’s Sue. I thought it might be a great idea at this time of year, to discuss putting on a new employee, and in this blog post, I thought I would highlight 6 reasons why contacting NGR Accounting before employing a new staff member is highly recommended.
ATO Compliance:
The ATO has specific regulations and requirements that employers must adhere to when hiring new employees. We are well-versed in these obligations and can ensure that you meet all ATO compliance requirements. From obtaining Tax File Numbers (TFNs) to registering for Pay-As-You-Go (PAYG) withholding, we can guide you through the necessary steps to avoid any penalties or legal issues.
Employment Structure and Tax Implications:
Employment structures can significantly impact your tax obligations. Consulting with NGR Accounting before hiring a new employee will allow you to determine the most suitable employment arrangement for your business, such as full-time, part-time, or casual.
We will provide insights into the associated tax implications, including payroll tax, superannuation contributions, and fringe benefits tax (FBT), helping you make informed decisions that align with your financial goals.
Financial Impact Assessment:
Adding a new employee to your workforce entails financial considerations beyond the employee’s salary or wages. NGR Accounting can conduct a comprehensive financial impact assessment, considering factors such as recruitment costs, payroll taxes, superannuation contributions, and workers’ compensation.
This assessment will provide you with a clear understanding of the financial implications associated with hiring a new employee, helping you plan and budget effectively.
Award Interpretation and Payroll Setup:
Navigating the complex landscape of employment awards can be challenging for business owners. NGR Accounting can assist in interpreting relevant industry awards and determining the correct rates of pay, allowances, and entitlements for your new employee. Additionally, we can guide you in setting up your payroll system accurately, ensuring compliance with award conditions and avoiding potential underpayment issues.
Employment Contracts and Policies:
Creating appropriate employment contracts and policies is essential for establishing clear expectations and protecting your business’s interests. NGR Accounting can review and provide guidance on drafting employment contracts and developing workplace policies that align with legal requirements and industry standards. This will help you mitigate risks and maintain a harmonious work environment. We can also recommend the right specialist, if required, to make sure you and your employee are covered.
Tax Incentives and Grants:
NGR Accounting can also inform you about any available tax incentives or grants related to employing new staff members. We can help you identify and leverage government programs designed to support businesses in hiring and training employees. By taking advantage of these opportunities, you can potentially reduce your overall recruitment costs and receive financial support during the onboarding process.
Engaging the expertise of the team at NGR Accounting before employing a new team member is crucial for a smooth and compliant onboarding experience.
Our knowledge of ATO requirements, tax implications, financial assessments, and employment regulations will help you make informed decisions and avoid costly mistakes. By proactively involving us, you can focus on building a successful team and nurturing your business while ensuring adherence to ATO regulations and maintaining financial stability.
If you have any questions, please feel free to contact NGR Accounting at 02 9011 6669 or via email at info@ngraccounting.com.au
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The information provided by our firm is of a general nature and does not consider your specific financial circumstances, needs, or objectives. The information is not intended to be relied upon as specific advice and should not be treated as such. Before making any financial decisions, we recommend that you seek professional advice tailored to your specific circumstances.
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Updated 21st June, 2023
JM