Hiring employees can be an exciting step for your business, but working out pay rates, tax and super can sometimes make it seem overwhelming.

In Western Australia, employee obligations run under two industrial relations systems - state and national. The system that applies to you depends on your business structure.

Generally, the national system applies to incorporated business – those with ‘Pty Ltd’ or ‘Ltd’ in their name. The state system applies to sole traders, unincorporated partnerships and some trusts.

If your business sits under the national system, the Fair Work Ombudsman provides information to help you meet your employer obligations.

If you have a Pty Ltd or Ltd company, the Fair Work website has four handy online tools to help you apply the correct pay rates, leave allowances and notice periods.

Pay calculator

The Pay Calculator works out base pay rates, allowances and penalty rates for employees under a range of awards. Awards (officially called modern awards) are legal documents that outline the minimum pay rates and conditions of employment.

The more than 100 industry or occupation awards cover most workers in Australia. If you are not sure which one your employee(s) falls under, search by job description to find the correct award.

Leave calculator

The Leave Calculator works out how much annual leave your employee(s) is entitled to under their award and also calculates leave loading — an extra payment employees receive while on annual leave under certain awards and other registered agreements.

Notice and redundancy calculator

The Notice and Redundancy Calculator works out what your employee is entitled to when employment ends. This includes the required notice period (for both employer and employee) and any redundancy pay due. It takes into account whether your employee has been dismissed due to serious misconduct, the nature of their employment arrangement, and whether you employ fewer than 15 employees.

Shift calculator

The Shift Calculator calculates total shift payments for a selected pay period, based on your employee’s award. You’ll need to select the pay rates, allowances and penalty rates that apply to the shifts entered in each period.

Helping you do the right thing

Fair Work Australia states that all employers and employees are responsible for keeping up-to-date with the modern awards. If your business falls under the national industrial relations system, take advantage of this set of tools to help you stay on the right side of workplace law.

More information

If you are unsure about any aspects of starting or running your business, contact our small business advisory service for free, confidential advice.

18 February 2020