Taking On Your First Employee

Hiring your first worker turns you into an employer overnight — with ATO registrations, super, payroll reporting, workers' comp and Fair Work paperwork that all have to be in place before the first payday. Here is the setup checklist.‍‌‌‌‌‌‌‌‌‌‌‍

Before the first payday — registrations

Confirm your ABN matches the employing entity (a sole trader, company or trust can all employ).
Register for PAYG withholding before the first payment you withhold tax from (ATO online, usually instant).
Super — pay the Super Guarantee (12% from 1 July 2025) on ordinary time earnings into a complying fund; set up a way to collect the worker's chosen fund, or request their stapled fund from the ATO if they do not choose one.
Single Touch Payroll (STP) — report tax and super each pay run through STP-enabled software; set the employee up (TFN, tax scale, fund, rates) and connect to the ATO.
Workers' compensation — compulsory once you employ, and it is state-based (icare NSW, WorkSafe VIC, etc.). Construction risk classifications mean higher premiums, so sort it as soon as you hire.

Day one — the paperwork

Collect the TFN declaration and the super choice form.
Give the Fair Work Information Statement (FWIS) to every new employee, and the Casual Employment Information Statement (CEIS) to every casual.
Pay at least the MA000020 award for the classification — get the contract right against the award or EBA (see The MA000020 On-Site Award). Use the First-Employee Onboarding checklist.
CEIS reminders (Closing Loopholes): a small business (under 15) re-issues the CEIS at 12 months; 15+ at 6 months, 12 months, then every 12 months.

Every payday — payslips

A payslip must go out within one working day of paying (electronic or paper), showing your name and ABN, the employee's name, the pay period and date, gross and net pay, loadings/allowances/penalties shown separately, the hourly rate and hours, deductions, and the super amount and fund. One quirk: a payslip must NOT mention paid family and domestic violence leave. You are legally responsible even if your software fills the fields — penalties apply per breach.

Keep the records — 7 years

Make and keep employee records for 7 years: details, pay and classification, hours (for overtime/penalty-rate workers), leave balances, super, and any agreements. They must be in English, legible, and producible to a Fair Work Inspector — and the worker can request a copy.