Bradford Jacobs’ global resources as an Employer of Record (EOR) provide the complete payroll platform for your company’s expansion into Australia. From the initial step of registering with the Australian Securities and Investment Commission, our payroll specialists guide you through the complexities of Australian taxation and employment laws and regulations. We process every requirement directly from our payroll services to the relevant authorities
We supply customized payroll solutions to meet your specific requirements. At Bradford Jacobs we recognize each business faces unique challenges and we have the complete answer to every question.
What Australian Payroll Options are available for Companies?
Remote Payroll – Where an international non-resident company handles the payroll for its employees based in Australia.
Local Payroll Administration – An international non-resident company appoints an in-country Employer of Record (EOR) to handle payroll for their employees based in Australia. The EOR are responsible for complying with all tax and payroll regulations and updates, including registering with the Australian Securities and Investments Commission, obtaining business and tax numbers and registering for Pay as you Go (PAYG) and Goods and Services Tax (GST).
Internal Payroll – A foreign-owned non-resident entity establishes its own payroll operation for their employees based in Australia, either locals or staff transferred from the company’s home country. This involves prohibitive levels of incorporation, registration and compliance with Australian law – in addition to setting up the payroll system.
Outsourced Payroll – Where an EOR such as Bradford Jacobs handle all aspects of the foreign company’s payroll and tax obligations in Australia by complying with all of the relevant authorities’ regulations.
Payroll Services in Australia
Paying staff in Australia, either locals or foreigners, demands complete understanding of the employment and taxation laws and regulations. This is complicated in Australia as taxation rules and employment laws can vary between different states in addition to collective agreements.
Outsourced payroll services in Australia will deal with the following.
• Remitting payments for income tax via Pay As You Go (PAYG) and Fringe Benefits Tax (FBT) to the Australian Tax Office (ATO). Thresholds and rates may vary between states
• Registering with Centrelink for social security support, which is generally restricted to Australian citizens and long-term residents and funded from general revenue rather than by employer and employee contributions
• Filing tax returns within four months of the end of the tax year, which runs from July 1 to June 30
• Remitting withheld taxes from employees’ salary to the Australian Tax Office (ATO)
• Creating employment contracts
• Creating pay slips and calculating monthly salary and income tax contributions to be remitted
Outsource your Australian Payroll
The above checklist highlights why the vast majority of foreign companies expanding into Australia hand their payroll to Employer of Record (EOR) providers such as Bradford Jacobs. By outsourcing payroll your company complies with tax and employment regulations without risking sanctions or financial penalties for late or incomplete filing. You focus on your goals and expansion, free of any worries over payroll. Questions? We have the answers. Contact Bradford Jacobs now.
What is required to set up Payroll in Australia?
Before a subsidiary can run payroll in Australia, the company must meet various requirements in setting up the subsidiary. These include:
• Select a company name that does not conflict with existing companies
• Decide on which type of company to be incorporated as a subsidiary or branch; a company limited by shares or by guarantee, an unlimited company or a no liability company (generally restricted to the mining sector)
• Register with the Australian Securities and Investments Commission (ASIC)
• Register with the Australian Tax Office (ATO)
• Obtain a Tax File Number (TFN)
• Register for Pay As You Go (PAYG) taxation and Goods and Services Tax (GST)
• Register for an 11-digit Australian Business Number (ABN) to interact with the ATO and the business sector generally and obtain an Australian domain name
Cut through the ‘Red Tape’
Time-consuming and non-productive administration can be deleted from your ‘to do’ list by engaging Bradford Jacobs to handle all the admin in registering new employees on the payroll of your company, without the costly requirements of establishing a subsidiary in Australia. Contact Bradford Jacobs now.
What Entitlement/Termination Requirements are included in Australian Payroll?
• The Australian national minimum wage for 2021 is AU$19.84 (US$15.44) per hour or AU$753.80 (US$586) per week for a full-time employee
• Sickness benefit comes under JobSeeker Payments, through which claimants can apply for support due to loss of earnings following illness or injury
• Working hours can vary between full-time, part-time and contracted professionals but are generally restricted to 38 hours per week, or 7.6 hours per day. Employers can ask for a reasonable amount of extra hours, complying with National Employment Standards, but overtime rates will apply
• Paid vacation leave is a minimum of four weeks, plus national holidays, as governed by National Employment Standards regulations
• Maternity/paternity leave comes under Parental Leave Pay (PLP) and is paid directly by the government to the employer, who passes the pay onto the employee. PLP from the government doesn’t exclude PLP from the employer, so the employee can receive both. Eligible working fathers and partners, including same sex partners, receive two weeks paid leave at the national minimum wage. Mothers receive 18 weeks of PLP, including a set period of 12 weeks to be used in an unbroken period within 12 months of the birth. The employee is allowed up to 30 days flexible leave, as agreed with their employer. Mothers can access up to 24 months’ unpaid maternity leave
• Discrimination in the workplace is prohibited under Australian law. This covers discrimination based on race, color or descent, national or ethnic origin, sex, marital status, pregnancy or potential pregnancy, family responsibilities, disability and age.
• Termination should be implemented only after the employer has given the employee written notice of their final day of employment. They can work through their notice or be paid in lieu. Notice periods depend on the employee’s age and length of service
• Severance entitlements include outstanding pay or other remuneration such as agreed bonuses, pay in lieu of notice, outstanding leave, long service entitlements, time off in lieu of overtime pay not taken, redundancy pay if eligible
What Taxation Rules exist for Payroll in Australia?
• Companies must register with the Australian Securities and Investments Commission to obtain a Tax Filing Number (TFN) and register for Pay As You Go (PAYG)
• Unlike Australian citizens, foreign workers receive no tax relief and are liable for tax on all their earnings
• Employers must withhold employees’ tax and forward filings to the Australian Tax Office (ATO)
• The tax year runs from July 1 until June 30 and individual returns must be filed by October 31 with the ATO, via a myGov link with their site
• Australian citizens are taxed on their worldwide income and may be taxed both in Australia and other countries where they have income
• Married couples do not make joint tax returns, but each must include information about their partner on their return
Stress Free Global Expansion
Bradford Jacobs’ Employer of Record (EOR) solutions take care of every step of the complex processes for international companies expanding into Australia and every new territory worldwide. Registration, tax laws and dealing with the relevant authorities are potentially hazardous barriers to your expansion. Bradford Jacobs are on call every step of the way to ensure your company clear all the hurdles to establishing a successful presence in Australia.