Hiring and payroll in Australia
Introduction
Australia, or the Commonwealth of Australia, is the largest country in Oceania by land size and the sixth largest country in the world, with a population of about 26 million people. It is a highly urbanized country, with Sydney being its financial center and most populous city. Other major cities include Melbourne, Perth, Brisbane, Adelaide, and Canberra — the country’s capital.
As a country with a highly developed economy, Australia ranks 14th largest economy in the world with the 9th highest per capita income globally. Due to the country’s global ties with major developed countries, diverse population, and advanced technology, Australia attracts international organizations and makes it a desirable region for global expansion.
This guide provides relevant information on how to hire and pay employees in Australia.
Hiring employees in Australia
Australia has one of the most educated workforces in the world. According to a Statista report, more than 60% of Australian employees have completed tertiary education. In addition to Australia’s highly skilled population, the country’s mixed economy offers global organizations an easy link to the Southeast Asian and western markets.
One significant reason to hire a remote team from Australia is their high proficiency in English. Also, the absence of language barriers makes communication easy for global teams.
How to hire employees in Australia
Employers use job portals such as Grabjobs, Adzuna, SEEK, CareerJet, and many more when hiring employees in Australia. Also, LinkedIn is an excellent resource for job seekers.
Hiring with an Employer of Record in Australia
An Employer of Record is a third-party platform that allows employers and organizations to hire contractors and employees, onboard talent, make payments to employees, and ensure the organization is in compliance with Australian employment laws.
The Employer of Record offers top-tier employment services for organizations planning to expand into Australia by enabling global organizations to hire a remote team without setting up a subsidiary.
Payroll in Australia
Payroll in Australia follows Australian employment and payroll laws. The Australian employment laws govern the payment method, payments for leaves and vacations, termination of employment, and more.
Ensuring compliance with the payroll laws in Australia is crucial. Although, it can be challenging, especially for organizations entering the Australian market.
However, managing a team in Australia requires determining the most suitable means to handle payroll in Australia. Two of the most essential and common standards include
Making employee payments through subsidiaries
To hire employees, organizations must also comply with the legal requirements for paying employees in Australia. One of the requirements is remitting taxes, statutory social contributions, and employee deductions. Employers can only make these payments by partnering with an established Australian company or setting up a subsidiary in the country.
Payroll in Australia via an Employer of Record platform
Setting up subsidiaries is challenging, time-consuming, and resource-intensive. However, having a partner or an entity is crucial before managing hiring and payroll in Australia for your team.
But with an Employer of Record platform, organizations can manage their payroll without setting up subsidiaries or operating in Australia. They can do this because the Employer of Record platform acts as the legal employer on the organization’s behalf, handling all the requirements to hire a remote team and manage payroll in Australia.
The Cost of Hiring an Employee in Australia
Organizations planning to hire a remote team in Australia must consider the cost and resources it will require. Like every business pursuit, understanding the financial requirements is key to managing growth expectations and helps in efficient planning and structure of the organization.
Therefore, the cost required to hire an employee in Australia entails the following.
- Business registration or subsidiary establishment expenses
- Costs of acquiring a legal team
- The employment and payroll platform fees
- Job portals ad placement fees
- Interviews and background checks cost
Organizations planning to hire a remote team in Australia can do so at a cost-effective price by partnering with an Employer of Record platform like Skuad. Skuad is a global employment and payroll platform that handles the entire employment lifecycle of organizations in Australia by handling all employment-related activities and ensuring compliance with Australian employment laws.
Conclusion
An Employer of Record offers the best solution for organizations planning to hire a remote team or manage payroll in Australia. While expanding into a new country is challenging, an Employer of Record platform enables organizations to hire contractors and full-time employees, onboard talent, manage payroll, and ensure all employment-related activities comply with Australian employment laws.
Employer of Record platforms like Skuad ensures that organizations can build globally distributed teams quickly and without hassles. To know more about Skuad, book a demo today.
