How do I handle payroll and employee taxes?

1. Understand your obligations: It’s important to understand your obligations as an employer, including your responsibilities for withholding taxes, paying superannuation, and providing employee benefits.
2. Register for payroll tax: Depending on the state or territory you operate in, you may be required to register for payroll tax and pay it on the wages you pay to your employees.
3. Withhold taxes: As an employer, you are required to withhold taxes from your employees’ wages, including income tax, Medicare Levy.
4. Provide superannuation: As an employer, you are required to make superannuation contributions on behalf of your employees to a complying super fund. The minimum contribution rate is currently 10.5% of an employee’s ordinary time earnings.
5. Keep accurate records: You are required to keep accurate records of all payroll and tax-related information, including employee details, wages, and taxes withheld.
6. Lodge and pay taxes: You will need to lodge and pay taxes to the Australian Taxation Office (ATO) on a regular basis, such as the payment summary annual report (formerly known as group certificates), and the Pay As You Go (PAYG) withholding report.
7. Report to the Australian Taxation Office (ATO): Employers are required to report superannuation contributions to the ATO, including through the use of the Single Touch Payroll (STP) system.
8. Provide employee benefits: Depending on your industry and the nature of your business, you may be required to provide certain employee benefits, such as workers’ compensation insurance, and comply with other regulations such as long service leave, leave entitlements and pay slips.

It is recommended to seek professional advice from accountant or a tax agent to ensure that you understand your obligations as an employer and to ensure that you are complying with all the applicable laws and regulations.