Employer Of Record Australia
Infotree Global Solutions provides the Australia Employer of Record services for companies who are looking to hire employees, manage HR and payroll in Australia. No need to set up a branch office because all your business requirements will be taken care of by a dedicated team of professionals. They will do all the work in compliance with the local labor laws and help in running your global business smoothly and effectively.
Table of Contents
• Hiring In Australia
• Setting up Payroll in Australia
• Payroll and Tax in Australia
• Employee Entitlements
• Challenges When Expanding Into Australia
• Australian Employment Compliance
• Australian Visas and Work Permits
• Why Infotree Global Solutions?
Hiring In Australia
Employment law in Australia mandates the minimum statutory standards and conditions as mentioned in the “Fair Work Act, 2009” legislation. Although if the employment comes under the “Award” category, rules and regulations may differ. For an outlander, Australian laws might seem confusing so it is widely suggested to take the help of Infotree Global experts who provide their Australia Employer of Record services by the law and thereby bringing ease in work.
Setting Up Payroll In Australia
When you are looking for expanding your enterprise in the Australian market, one needs to understand and be aware of the compliance requirements for payroll in Australia. The accepted currency is the Australian Dollar. The compensation and severance amount is in AUD. The severance is given to the employees who are working for at least a year. One of the basic steps to be considered while setting up the payroll in Australia is coming up with a business model that will help expand the business in the market. Certain documents need to be submitted by the employers to set up the payroll. These include:
• Proof of Identity/citizenship
• Tax File Number
• Superannuation Choice Form
• Global Outsource partner CIF
The employees need to enroll for a Tax File Number. There are no social security taxes but the taxpayers finance the welfare and public health care services. The Medicare levy is currently 2%. National Employment Standards cover the basic employment conditions and additional agreements can be established in unionized industries. The standard payroll cycle is conducted every month with exceptions in industries like manufacturing which pay their employees on fortnightly basis. The retirement fund or superannuation is also taken care of, with employers contributing an amount equal to 9.5 % of their salary and this is for all the employees earning more than AUD $450 per month. The Employer Record in Australia can assist a non-resident company to employ and manage the payroll on its behalf. This way the company can focus on their other important work in addition to reducing the compliance burden, which otherwise, could be a headache!
Payroll and Tax In Australia
As an employer, it is the responsibility of an employer of record to ensure that all the necessary obligations are fulfilled and the income tax and other security concerns are duly processed. A foreign company setting up in Australia needs to take care of the tax requirements like the sales tax, payroll tax, withholding tax, compensations, and individual income tax. In Australia, the full company tax rate is 30% and the lower company tax rate is 27.5%
The other tax-related concerns for employees are-
• State Payroll Taxes – The tax and thresholds differ across different states and territories.
• Goods and Services Tax (10%)
• Pay As You Go (PAYG) – A withholding tax on the income of the employees.
• Fringe Benefits Tax (FBT) – Employers pay the FBT tax on certain benefits given to the employees.
Australian income tax rates for 2020/21 (residents)
|$0 – $18,200||Nil|
|$18,201 – $45,000||19 cents for each $1 over $18,200|
|$45,001 – $120,000||$5,092 plus 32.5 cents for each $1 over $45,000|
|$120,001 – $180,000||$29,467 plus 37 cents for each $1 over $120,000|
|$180,001 and over||$51,667 plus 45 cents for each $1 over $180,000|
Australia is very strict about its tax payments as any other country. Infotree Global as an Aussie Employer of Record makes sure that the company fulfills all those payments on time. They handle all the taxes, withholding, social security, and so on for you.
In Australia, employers need to comply with standards of employment entitlements for employees as mentioned under National Employment Standards (NES). These include the wages, conditions, and duration of the work. The regulatory working hours are 38 hours per week. Extra hours are allowed if it is imperative. Full-time, as well as part-time employees, are granted up to 4 weeks of paid annual leave and 10 days of minimal paid sick leave (personal leave) apart from the 7 designated public holidays. Employees who are the primary carer of a newborn or newly adopted child get up to 18 weeks’ PLP, which is paid at the National Minimum Wage. Employees can work on Sundays and be entitled to a higher pay rate. Employers take care of the worker’s compensation in case of accidents. The employees are also provided with statutory notices regarding the termination. The employment contract generally entitles a notice of termination for 12 months under certain circumstances. What attracts the Australian Workforce is the new perks and policies that go beyond the traditional leaves’ entitlement. There is also a retirement system in Australia called superannuation where employers give some fixed amount from the employee’s salary which the latter can obtain at the time of retirement. An Employer of Record Australia can be of great assistance to companies in managing the employee entitlements so that the company can move its operation effortlessly.
Challenges When Expanding Into Australia
Setting up a subsidiary in foreign lands comes with a lot of challenges. The international business environment has many employment-related considerations. In the case of Australia, it currently holds the 14th largest economy rank in the world. The population of 25 million contributes to its 10th rank in per capita GDP. It provides an ideal yet challenging atmosphere for incoming operations. Companies entering the Australian market have to consider a lot of things before their business establishment. There are economic, social, and cultural, political, geographical, market attractiveness, and business factors to be thought about. The employment environment is constantly changing, there is the matter of global payroll, tax and regulations, and the legal formalities in employment.
Deciding upon business structure is especially important before setting up a business in Australia. Choosing the wrong structure can lead to numerous tax implications and big fees if the business structure needs to change. The selection of structure depends upon the size and type of business the company wants to run.
In Australia, a company can be registered with the Australian Government’s business registration service. Below are the required registrations
• Australian Business Number (ABN)
• TAX File Number (for taxation purpose)
• Goods & Service Tax (GST) and Pay as You Go (PAYG).
Foreign companies need to be extra careful while applying for these registrations. One possibility of avoiding these obligations would be, to opt for expert services from an Australian employer of record and hire a workforce on your behalf instead of setting up a company.
Australian Employment Compliance
There should be a beforehand knowledge of the legal requirements in Australia like leave, permitted and holiday entitlement, and important pay that should be prior available before the offer letter. Making sure that business complies with minimum legal obligations, is crucial. For the employees, there are acts like the Privacy Act 1988 which regulates and protects the privacy of the employees by handling their details within privacy standards. There is the Australian Human Rights Commission Act 1986 that protects the employees from discriminatory behavior based on race, gender, religion, political views, medical record, criminal record, and union activities.
Australia’s Fair Work Act 2009 looks after the employment relationship in Australia. It covers the majority of employees, providing them with the entitlements in the following ten areas:
• Work hours
• Annual off
• Flexible work system
• Personal or caregiver’s off
• Public holidays
• Compassionate leave
• Community service off
• Termination notice and redundancy pay
• Unpaid parental leave
• Fair Work Information Statement
Infotree Global as your Australia Employer of Record ensures that your operation is compliant with all of it so that you don’t have to be in midst of the legal-hassles.
Australian Visas and Work Permits
Being at number 15 out of a total 190 economies in the ease of doing business, Australia or for that matter, any of the Australian states like Sydney, Melbourne, Brisbane, Adelaide, comes across as a smart opportunity when looking for expansion globally. As per immigration laws, proper visas and permits are demanded if one wants to work in Australia. For obtaining the visa, companies are required to apply for the “standard business sponsor” via the Department of Home Affairs. It generally takes 6 months to 12 months for your work visa to get processed. The most frequent skilled visa obtained is the Temporary Skilled Shortage Visa (TSSV). This visa permits skilled workers in Australia to work in businesses up until four years. Further, individuals possessing TSSV for more than two years are eligible for permanent resident visas. There are different documents needed for these processes. All this can take a lot of time but if you hire Infotree Global as your Employer of Record Australia, this could be done in no time as we will be sponsoring your employees for such work permits.
Types of work visas in Australia available for skilled professionals:
• Employer Nomination Scheme (ENS) Visa: Allows skilled workers nominated by their employer to live and work in the country permanently.
• Skilled Independent Visa: Invited workers and New Zealand residents with skills can acquire this visa to live and work in Australia.
• Regional Sponsored Migration Scheme (RSMS) Visa: Skilled workers can permanently live and work in a regional part of the country, nominated by the employer.
• Skilled Nominated Visa: Skilled workers can live and work as permanent Australian residents, nominated by employers.
• Temporary Skilled Shortage Visa: Enables an employer to sponsor a skilled worker in the absence of an Australian citizen.
• Skilled Regional (Professional) Visa: A temporary visa for skilled workers willing to stay and work in a particular Australian area.
• Temporary Work (Short Stay Specialist) Visa: A temporary visa, eligible for people who contribute in short-term, highly specialized work.
• Temporary Work (International Relations) Visa: A temporary visa for work in certain circumstances that improve Australia’s international relations.
• Distinguished Talent Visa: A permanent visa for people having an internationally acclaimed record of extraordinary achievement in a specific field.
• Business Talent (Permanent) Visa: A visa for growing or initiating a new or existing business.
Why Infotree Global Solutions?
Hiring overseas is a demanding task. Infotree Global is the solution if your company is looking for global expansion. Our Employer of Record services caters to the requirements of the company and help to gain a competitive edge in the global markets. A team of experts will be at your disposal to take care of all the in-country requirements of the business while abiding by the law. It will connect your company to the brightest talent from around the world which will help to grow your business exponentially.
Let Infotree Global be your guide in foreign lands and help save you on a lot of resources. Running Global payroll has never been simpler.