Paying your employees

As an employer, you must pay your employees at the correct rate, as well as any entitlements they are eligible for. This includes parental leave, sick leave or overtime rates.

The wages and entitlements your employee is eligible for can depend on:

  • their age
  • the state they're in
  • your industry
  • their qualifications
  • their work duties and responsibilities.

Working out pay for your employees

To help you work out what you need to pay your employees, the Fair Work Ombudsman (FWO) has created a Pay Calculator. You can use this online tool to calculate modern award pay rates for your employees, including:

  • base pay rates
  • allowances
  • overtime and penalty rates
  • pay rates per hour
  • pay rates for entire shifts
  • their employment status (full-time, part-time, casual).

WA sole traders and partnerships in the WA industrial relations system should refer to WA pay rates and WA hours of work, overtime and penalty rates.

Single Touch Payroll

The Australian Taxation Office (ATO) introduced the Single Touch Payroll in July 2018, changing the way certain businesses report employee tax and super to the ATO.

For employers with 20 or more employees, you need to report to the ATO each time you pay your employees. The information you need send to the ATO includes your employees' salaries and wages, allowances, deductions (for example, workplace giving) and other payments, pay as you go (PAYG) withholding and superannuation.

From 1 July 2019, Single Touch Payroll will be extended to include employers with less than 20 employees. The changeover will be gradual, and when you need to start reporting through Single Touch Payroll will differ depending on how many employees you have.

Head to the ATO website to find out more on the Single Touch Payroll.

National minimum wage in Australia

The national minimum wage will increase in Australia on 1 July 2018 by 3.5%.

The new national minimum wage is $719.20 per week, for a 38-hour week, or $18.93 per hour.

You'll need to apply the wage increase for your employees from the first full pay period starting on or after 1 July.

The increase applies to employees that get their pay rates from:

  • the national minimum wage
  • a modern award
  • in some cases, a registered agreement.

The Fair Work Ombudsman’s website contains information on minimum rates of pay including a Pay Calculator to help you find and calculate the right rates.

Thanks for your feedback. If you have any ideas on how we can improve, we'd love to hear them.

Please provide your comments in the feedback form.

You might also be interested in