The holiday season is a busy time of year for many businesses and it is not uncommon to hire staff particularly for this period.
If your business is one with an influx of sales during this time and you plan on hiring more employees to keep up with demands, make sure you know what you’re doing. Consider the following tips:
Consider the type of employment
Determining whether holiday staff are employees or contractors will mean considering your responsibility to them in terms of tax and super. If you are non-compliant with tax and super obligations, you could incur fees and penalties. According to the ATO, employees and contractors can both be hired for:
– Busy periods
– Short-term jobs, specific tasks and projects
– Casual, temporary, on-call or infrequent work
Working holiday visa
If the staff you are employing for this period are in Australia on a working visa, to be compliant, you must register with the ATO as an employer of working holiday makers. You will also need to tax these staff members specifically at a rate of 15 per cent, from the first dollar they earn. This occurs regardless of their residency status.