At Williamson Partners we often find ourselves working with customers whose businesses are growing and changing.

Transition from sole trader to a Pty Ltd company can be an exciting time for a small business but aside from company structure and set up, have you considered your obligations as an employer?

Even if yours is a single director company, if you (the director) are drawing a salary, then you must take out Workcover insurance, register for PAYG Withholding and make superannuation payments into a complying super fund.

Register for PAYG Witholding tax

As an employer you will be required withhold tax from payments you make to employees. If you have other workers such as contractors, you can also agree with them to withhold tax from payments you make to them.

In addition, you may be required to withhold tax you’re dealing with businesses that do not quote their Australian business number.

The team at Williamson Partners would be happy to talk to you about your PAYG obligations.

Visit the Australian Taxation Office (ATO) website for more information about PAYG withholding.

Register for Worksafe

As a sole trader, a proprietor or a member of a partnership you are not required to register for Workcover. However under Australian law, if you pay more than $7,500 per year in what WorkCover calls ‘Rebatable Remuneration’, the people you remunerate must be covered by Workcover insurance.

For more information about whether you need to take out Workcover insurance, talk to Williamson Partners or visit the Victorian WorkCover Authority website.

Superannuation

If you are employing people under a verbal or written employment contract, whether full time, part time or casual, then you are an employer for super guarantee purposes and you are required to make superannuation contributions into a complying super fund.

There are a number of discretionary options around superannuation that can make good business sense, such as offering additional superannuation as an incentive or to retain quality staff.

Read more about your super obligations on the ATO website or talk to Williamson Partners about managing superannuation for your business, including Self Managed Super Funds.