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  • #978654
    AgentMail
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    We don’t have a category on here for Growing a business, but I wanted to share some info I have found, perhaps others that are in the process of growing can do so as well.

    We have just started doing our homework on employing someone for the first time. I am trying to make sure I cover all basis, before I start looking for someone.

    My first call was to WorkCover QLD. After running through what we do etc. we were categorised as office and administrative services. I was advised that the minimum premium in that category was $275 pa and that covered up to $51,000 in wages including super etc. (I previously had no clue what Workcover cost, so was glad to have a ball park to work with)

    He did mention that the premium of course varies from industry to industry.

    Second, I phone and spoke to Fair Work Australia, to understand award wages. They then categorised my business as Graphic Arts, Printing and Publishing. The minimum hourly rate for a level 1 (untrained) permanent employee was $15.51 per hour, with casual equiv of $19.20 per hour. This is likely to change from 1st July, but not by much.

    This info might be completely useless, but for other people in the growth stage, that have no clue where to start, hopefully this can give you some food for thought.

    #1108599
    JacquiPryor
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    Great idea for a thread I think.
    Just to add, for those that may come along looking for such information – this page at the ATO website has detailed information on employer obligations, withholding tax, keeping wage records etc.

    #1108600
    Avatar Consulting
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    Adding employees to your business

    Hi

    I find it interesting that you went to Workcover first rather than Fairwork as Fairwork are the body responsible for employee management. They are both required to visit as soon as you even hire 1 employee because your obligations start as soon as you have employees.

    There is more to the management of employees than hourly rate though so read the award thoroughly to work out what your responsibilities are with;

    • Uniform allowances
    • Safety equipment you have to supply them
    • Induction training costs and manuals
    • Payslip obligations
    • Annual leave and Sick leave requirements
    • How to fire and discipline employees
    • Penalty rates for overtime

    Hiring employees will usually cost your business triple the hourly rate in expenses. Even just a few overtime hours will cost you $35+ per hour in wages. Make sure you understand that any employees working on Sat or Sun get more pay and if they start or finish their shift before a certain time they also get more pay.

    On top of the award conditions your business will need to write up some new documents and systems to manage your employees. Some documents you will need to develop before hiring the new employee are;

    1. Employment contract
    2. Employee file documents
    3. Payslips
    4. Timesheets
    5. Induction manual
    6. Discipline forms
    7. Probationary forms
    8. Performance appriasals
    9. Position Description
    10. Leave forms
    11. Task Procedure manuals
    12. Injury reporting forms
    13. and the list goes on…

    This is why it will cost your business around $60,000 to hire an employee earning about $30,000 in wages. Before hiring employees consider completing some training in Human Resource Management so you don’t break any laws. The standard fine is $33,000 for each breach of employment law.

    #1108601
    AgentMail
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    Hi Avatar,

    Thanks for the detailed response. I can’t see anywhere on the Fairwork site that it says they need to come out and meet/see the business? Do you have a link to that piece of info?

    I know that Workplace H&S need to come out?

    Ok, so my list of essentials is (and please excuse, I have consolidated some of them under just Employee Policies)….

    Tax File Number declaration Form
    Superannuation Standard Choice Form
    Fair Work Information Statement
    Employment Contract/Agreement
    Copy of Award details
    Employee Details Form
    Employee Policies/Handbook
    PAYG Withholding
    WorkCover
    Workplace H&S

    Please feel free to add any other items essential when first employing someone

    #1108602
    MyGreatIdea
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    Please feel free to add any other items essential when first employing someone

    Before you even start the employment process I’d suggest THE most important documents to have are a detailed job description and manual to go with it.

    Wendy :)

    #1108603
    interAccounts
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    Hi AgentMail,

    I’ve found Brooklin of C2C Employment (also a FS member) an invaluable addition to my business as she specialises in both Human Relations (HR) and Industrial Relations (IR). She understands both Acts and is able to apply them to any business in simple language. She’s able to write up most of the documents listed above for a very reasonable cost.

    In one of the discussions I’ve had with her, she’s mentioned that she had been given wrong advice from Fair Work Australia representatives over the phone. Considering you’ve already been classified into two different industries by two Government departments, it may be best to clarify it all with someone who specialises in HR and IR first before taking any steps.

    You can generally get the Tax File Number declarations from any Newsagent, and the Super Choice form from the ATO website or your nominated super fund. The other place is your Accountant.

    Enjoy your growth.
    Cheers,
    Beth

    #1108604
    kathiemt
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    Almost enough to scare you off having an employee. I’ve had a couple of part-timers in the past but don’t have a need for that these days. I generally outsource to fellow VAs when I need something done. Of course, it’s been useful having someone in-house when I’ve needed to catch up with filing or something :)

    #1108605
    AgentMail
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    Hi Beth,

    Thanks for your comments. No disrespect to Brooklin at all, but I don’t believe that a small business should have to pay for advice and assistance to employ people, I believe the government need to cut the red tape and keep it simple for us. Just my own personal opinion, but why should we have to pay to understand how we meet our obligations with the government of employing people, when they are constantly trying to tell us that they want to make employing people simple.

    #1108606
    kathiemt
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    AgentMail, post: 121955 wrote:
    Hi Beth,

    Thanks for your comments. No disrespect to Brooklin at all, but I don’t believe that a small business should have to pay for advice and assistance to employ people, I believe the government need to cut the red tape and keep it simple for us. Just my own personal opinion, but why should we have to pay to understand how we meet our obligations with the government of employing people, when they are constantly trying to tell us that they want to make employing people simple.

    Probably for the same reason we need to pay an Accountant to help us keep within tax guidelines for our businesses too. The reality is we need specialists in different fields to help us keep on track in our businesses. We can’t be expected to know everything, to keep up with everything and to have sufficient knowledge on everything.

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