Your first employee's first day is the deadline. Everything on this checklist needs to be in place before it, not caught up afterwards. Award coverage, superannuation, workers' compensation and payroll tax registration all start applying the moment someone begins work for you, whether or not the paperwork behind them is ready.
Hiring your first employee? Get the compliance checklist done before their first day, not after.
Book a Free Consultation →Check Award Coverage Before You Set the Pay Rate
Before you decide what to pay, find out which Modern Award, if any, covers the role. Awards set minimum pay rates, penalty rates, allowances and other entitlements that apply regardless of what's agreed between you and the employee. Getting this wrong at the start, either applying the wrong award or assuming none applies, is one of the most expensive mistakes a new employer can make, because underpayments can be owed retrospectively once discovered.
The Checklist Before Day One
- Confirm award coverage and the correct classification and pay rate within it.
- Put a written employment contract in place, setting out pay, hours, leave and probation on top of the National Employment Standards and any applicable award.
- Register for PAYG withholding with the ATO so tax can be withheld from wages correctly.
- Set up superannuation guarantee payments, timed to each payday under Payday Super, not quarterly.
- Register for WorkCover before the employee starts, based on expected annual wages.
- Check payroll tax registration thresholds if you already have or expect to have other employees or related entities.
- Confirm leave entitlements and record-keeping systems are ready to track annual leave, personal leave and, eventually, long service leave.
Payday Super changed how and when super needs to be paid. Our complete guide covers the mechanics for employers.
Payday Super and Payroll Compliance →Casual, Part-Time or Full-Time: The Classification Matters
How a role is classified affects leave entitlements, notice periods, and in some cases whether a casual employee is entitled to convert to permanent employment after a period of regular work. Classifying a role as casual because it's simpler administratively, when the actual working pattern looks like a permanent one, is a common source of later disputes and back-payment claims.
What Continues After Day One
Compliance doesn't end once the contract is signed. Ongoing obligations include correct payslips each pay cycle, superannuation paid on time under the new payday timing, leave accrual tracked accurately, and, for many businesses, an annual review of whether payroll tax thresholds have been crossed as wages grow.
How Phan Campbell & Associates Can Help
At Phan Campbell & Associates in Footscray, we help business owners get employment right from the first hire: award classification, employment contracts, and the payroll and superannuation systems that keep a growing team compliant. Our legal and accounting teams work together so the contract and the payroll setup match from day one.
If you're about to hire your first employee, talk to us before their first day, not after.
Frequently Asked Questions
1. What is the first thing I need to check before hiring an employee?
Whether the role is covered by a Modern Award, and if so, which one. The award sets minimum pay rates, penalty rates, allowances and other entitlements that apply regardless of what you and the employee agree to in writing. Getting the wrong award, or assuming no award applies, is one of the most common and costly mistakes new employers make.
2. Do I need a written employment contract?
You should have one, even though some employment relationships can exist without one. A written contract sets out pay, hours, leave entitlements and probation clearly, on top of the minimum standards set by the National Employment Standards and any applicable award, and it protects both you and the employee if there's ever a disagreement about what was agreed.
3. When does superannuation guarantee obligation start?
Generally from an employee's first pay, for eligible employees, regardless of how many hours they work or whether they're casual, part-time or full-time. Under Payday Super, employer contributions need to be paid in line with each payday, not quarterly, which changes how payroll needs to be run from day one.
4. Do I need workers' compensation insurance for one employee?
In Victoria, WorkCover registration is generally required once you pay more than a set amount in annual wages, which most businesses with even one employee will meet or approach quickly. It needs to be arranged before the employee starts, not after an incident occurs, since retrospective cover is not how the scheme works.