Employer obligations

If you operate a small business you need to know all about your obligations to employees and other people who perform work for you. Under common law employers and employees have certain obligations or duties to each other.

Legal obligations
Your obligations to employees and other workers come from a variety of sources - federal, state/territory laws, industrial awards and agreements, tribunal decisions and contracts of employment (whether they are written or verbal).
Record keeping
Good business records help you manage your business and make sound business decisions. They are also useful if you want to sell your business.
Staff health & safety
As a small business owner you have certain rights and responsibilities regarding health and safety in your workplace.
Taxation & superannuation obligations
If your business has employees or contractors then you'll need to know how to meet your tax obligations.
- Determine the status of workers
  The status of your workers for tax purposes is important, as employees and contract workers involve different obligations.
- Fringe Benefits Tax (FBT)
  FBT is a tax payable by employers for benefits paid to an employee or the employee's associate in place of salary or wages.
- Pay As You Go (PAYG) withholding
  Pay As You Go (PAYG) withholding is a legal requirement to withhold amounts for income tax purposes.
- Pay-roll tax
  Pay-roll tax is a state tax on the wages paid by employers. It is calculated on the amount of wages you pay per month.
- Superannuation
  Running a business or employing people is likely to involve superannuation obligations. Most of your employees, whether full-time, part-time or casual, will be covered by the superannuation guarantee legislation.
Insurance
It's your responsibility as an employer to maintain certain insurance, including workers compensation and public liability.
Legal obligations in your state or territory
Useful guides, information and resources in your state or territory on legal obligations.
Paid Parental Leave
Information about the Paid Parental Leave scheme, how it affects your business and what you need to do to get ready.
- Employer responsibilities
  The role of employers is being phased in over the first six months of 2011 to help employers transition to the new arrangements.
- Employee responsibilities
  It is the employee's responsibility to lodge their claim with the Family Assistance Office (FAO). The FAO will determine the employee's eligibility for Paid Parental Leave (PPL).
- Where can I find more information about Paid Parental Leave?
  For more information about PPL for employers visit australia.gov.au and the Family Assistance Office websites. Information will be periodically updated in the lead-up to the implementation of the scheme.

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