What if I employ staff?
Sole trader and company
You can employ staff as both a sole trader and company business structure. Both structures can employ people under different employment structures such as casual, permanent, part-time, full-time. Each structure has different obligations for you as the employer. Some offer more flexibility for workers, while others provide more security for the business.
If you employee people, you must pay a minimum of 9.5% of their ordinary time earnings as superannuation contributions.
You are also responsible for:
- taking out workers' compensation insurance to protect your employees in the event of an accident or sickness
- adhering to Workplace Health and Safety regulations, particularly those relevant to your industry.
- ensuring your staff are Australian citizens, permanent citizens or have a visa that makes them eligible to work in Australia.
As a director:
- You have a legal responsibility to ensure your company meets its Pay As You Go (PAYG) withholding and Super Guarantee Contribution (SGC) obligations.
- You are personally liable for unpaid PAYG and SGC.