Superannuation contributions
Employers in Australia are required to make superannuation contributions on behalf of their employees, currently set at 10.5% and gradually increasing. This contribution rate applies to employees earning more than AUD $450 per month and must be paid every quarter to a superannuation fund.
In addition to compulsory superannuation contributions, employers can also offer concessional and non-concessional contributions to their employees’ super funds. Offering a competitive superannuation package can help businesses attract and retain top talent, contributing significantly to their organization’s success.
Workers’ compensation insurance
Workers’ compensation insurance is mandatory in Australia and provides the following benefits for employees who suffer work-related injuries or illnesses:
- Medical coverage
- Financial support for medical expenses
- Compensation for lost wages
- Coverage for other associated costs resulting from work-related injuries or illnesses.
All employees in Australia are eligible for workers’ compensation insurance, and employers must apply for coverage through the applicable workers’ compensation authority in their state or territory. Ensuring the presence of workers’ compensation insurance allows businesses to protect their employees and show their commitment to employee well-being.
Onboarding and Hiring with an EOR
An Employer of Record in Australia can streamline the onboarding and hiring process, ensuring compliance with local laws and easing the administrative burden for businesses.
This section will discuss the benefits of using an EOR for onboarding and hiring, with a special focus on hiring foreign nationals.
Streamlined onboarding
An EOR in Australia can facilitate onboarding by providing compliant employment contracts, administering payroll, and ensuring compliance with local laws and regulations. These services not only save businesses time and resources but also ensure that all employees are treated fairly and in accordance with the law.
Partnering with an EOR gives businesses peace of mind that their onboarding processes are compliant and efficient, freeing them to concentrate on their core operations and growth strategies.
Hiring foreign nationals
Hiring foreign nationals in Australia can be complex, but an EOR can assist with visa processing, work permits, and compliance with local employment laws. By engaging an EOR in the hiring process, businesses can navigate the complexities of hiring foreign nationals while ensuring adherence to local laws and regulations.
Moreover, the EOR is responsible for:
- Onboarding foreign nationals
- Managing the ongoing employment of foreign nationals
- Simplifying the process for businesses
- Enabling businesses to successfully hire foreign nationals
- Expanding their workforce in Australia
Termination and Redundancy
Termination and redundancy processes in Australia can be complex and require careful consideration of notice periods, severance payments, and protection against unfair dismissal. This section provides an overview of these processes and highlights the importance of complying with local regulations.
Employees in Australia are protected from terminations that are deemed harsh, unjust, or unreasonable under Australian employment law. The requirements for termination of employment in Australia must be consistent with the relevant employment contract and industrial instrument. If the employee doesn’t meet expectations during the probation period in Australia, their employer has the right to end their employment. A written notice of termination must be provided in accordance with the National Employment Standard.
Severance pay for termination in Australia can range from 4-12 weeks’ salary, depending on the number of years of service. Adherence to these regulations and processes can minimize the risk of non-compliance and legal disputes, safeguarding both the employer and employee.
Visas and Work Permits
Navigating the complex world of visas and work permits is a crucial aspect of hiring foreign nationals in Australia. This section provides information on the available types of visas and discusses how an EOR can assist with visa processing and compliance.
Visa availability in Australia is limited, and certain visa quotas imposed by various countries may impede an EOR’s ability to sponsor a foreign national employee. An EOR’s role in regards to visa processing and compliance involves:
- Assessing feasibility and costs prior to applying for the work visa
- Partnering with an EOR ensures businesses remain compliant with local employment laws
- Successfully navigating the complexities of hiring foreign nationals
Payroll and Tax Management
Managing payroll and tax obligations is an essential aspect of doing business in Australia. Horizons is the Australia Employer of Record. Its responsibility includes withholding employee income taxes, paying payroll taxes to the relevant state authorities and filing tax returns with the Australian Tax Office..
Employers in Australia may be obligated to remit payroll taxes on wages, superannuation, and other employment benefits, with rates varying by region. Partnering with an EOR helps businesses ensure compliance with local tax laws and regulations, freeing them to concentrate on their core operations and growth strategies.
5 Best Australia EOR
- Deel: Deel offers a comprehensive suite of HR solutions, including payroll management, benefits administration, and compliance support. With their user-friendly platform and global expertise, Deel is an excellent choice for businesses looking for a streamlined PEO experience.
- Safeguard Global: Safeguard Global specializes in global employment solutions, providing end-to-end HR services for companies operating in multiple countries. Their technology-driven approach, coupled with local compliance knowledge, makes them a strong contender for Australian businesses with global operations.
- Papaya Global: Papaya Global offers a unified platform for managing global payroll, employment, and contractor compliance. Their robust technology and focus on automation make them an attractive option for businesses seeking a modern, efficient PEO solution.
- Horizons: Horizons is a leading PEO in Australia, offering a wide range of HR services tailored to meet the specific needs of businesses. Their personalized approach and commitment to compliance make them a trusted partner for companies across various industries.
- Remote: Remote specializes in helping businesses build and manage global teams seamlessly. With their expertise in remote work arrangements and compliance management, Remote is an ideal PEO for businesses navigating the complexities of distributed teams.
Professional Employer Organization (PEO) vs. Employer of Record (EOR)
As you expand your business in Australia, you’ll encounter two main service providers: Professional Employer Organizations (PEOs) and Employers of Record (EORs). Both offer valuable support for businesses, yet understanding their differing responsibilities, liabilities, and benefits is vital.
A PEO works in partnership with the employer, sharing responsibilities and providing support in areas such as HR operations. In contrast, an EOR serves as the legal employer, assuming all liabilities related to the employees and managing all aspects of the employment relationship, including payroll, tax compliance, and hiring.
Organizations typically collaborate with a PEO when they require ongoing support in enhancing their HR operations, while an EOR is more suitable for businesses looking to quickly and efficiently expand their workforce in Australia, particularly when hiring foreign nationals.
Summary
In conclusion, partnering with an Australian Employer of Record (EOR) can significantly simplify the process of expanding your business in the country. From navigating the complexities of local employment laws and regulations to streamlining onboarding, hiring, and payroll management, an EOR can help ensure your business remains compliant while allowing you to focus on growth and success in the Australian market.
