Once you have set up your business, the first step is to add an employee. There are 3 methods to adding employees:
- Employee Self Setup. Click here to read instructions on this process; or
- Importing an employee file. Click here to read instructions on this process; or
- Utilising the Employee Wizard.
This article will provide assistance in setting up an employee using the wizard.
Setting up an employee using the Employee Wizard is a simple 4-step process.
Step 1. Personal Details
The following fields in Personal Details must be completed in order to progress to the next screen:
- First Name
- Date of Birth
- Residential Address Line 1
- Residential Suburb
- Email Address, if "Employee Notifications" = Email
- Mobile Phone, if "Employee Notifications" = SMS
Step 2. Employment Details
This section allows the user to configure the pay details for the employee such as rate of pay, pay schedule and primary location. If your subscription plan allows for Award installation, the first employment detail settings displayed on this screen are as follows:
- If you have not yet installed an award, you can do so from the Award field. Simply click on the drop down to see an "Add new" option. You can then follow the process of selecting an Award that will then download in the background.
- You can further read up on employment agreements from this article. If you select an Employment Agreement, the following fields will then pre-populate based on the settings of that agreement:
- Pay Rate Template
- Employment Type
- Pay Rate - however you can override this
- Primary Pay Category
- If you have not selected an employment agreement but want to assign a Pay Rate Template, the following fields will then pre-populate based on the settings of that template:
- Pay Rate - however you can override this
- Primary Pay Category
- Please note that none of the above fields are compulsory.
- The Employing Entity field will only appear if the business has more than one employing entity set up. The default value here will be the employing entity entered in the Business Details screen. You can change this by clicking on the drop down and selecting the correct entity.
- Both the Start Date and Employment Type fields are compulsory to complete.
- Both the Primary Location and Pay Schedule fields will be populated with suggested values however to change these, click on the pencil icon and select the correct value. Please note that the primary location value is the location that will be assigned as the employee's default location. If the employee will be working in more than one location you can select multiple locations once you have completed the employee wizard. You can attach more than one location to an employee via the "Locations" screen within their employee file.
- You can create a new location from the Primary Location field by clicking on 'Add New' in the drop down.
- If you are paying an employee an annual salary, ensure you enter the annual salary in the Pay Rate field and then change "per hour" to "per Annum". Once you enter the weekly hours the system will calculate the employee's equivalent hourly rate.
- If the employee is casual, the hourly rate entered in the Pay Rate field should be exclusive of the casual loading. The reason for this is that when it comes to completing the Primary Pay Category, you would assign the pay category "Casual Ordinary Hours". This pay category has a 25% loading attached to it and will be paid in addition to the pay rate entered in the Pay Rate field.
- By default, the employee's hours per day setting will reflect the value set up as the business' hours per day (in Payroll Settings > Details). The value entered here is important as it is used to convert day or week based leave into hours within the pay run. Additionally, attempting to enter the value 0 in this field will revert the value back to the business' hours per day value.
- Further reading on leave allowance templates can be found here. This field is not compulsory, however if you do not assign anything here, employee leave accruals may be incorrect. This is particularly important for casual employees who should not accrue any annual leave or personal leave.
Step 3. Banking & Super
- Entering the employee's bank details are compulsory.
- Employees may either be paid electronically into a bank account (using an ABA file), manually into a bank account, manually via cash/cheque or electronically into a BPAY account.
- You can choose to enter the employee's super fund details at a later stage if you do not have them on hand.
- Additional bank accounts and super funds may be added once the employee setup is complete.
Step 4. Tax File Declaration
This section is for entering the tax file declaration information for the employee.
- The Tax File Number field is a compulsory field. Any tax file number entered here will go through a validation check.
- If you have not been provided with the employee's tax file number or the number provided is invalid or the employee is exempt from supplying a tax file number, click on 'I don't have a tax file number for this employee'. You will be provided with a list of special circumstance scenarios that you can select from:
- A common set of Tax Calculation Options are pre-selected but these may be amended by clicking on the pencil icon. You will then see a full list of options that you can select from, including the option to set a Medicare Levy Exemption.
- If the employee has completed a Tax File Declaration form you can enter the date in the Date Signed field.
- If you have enabled electronic lodgement, you can choose to lodge the employee's tax file declaration electronically (via Standard Business Reporting - SBR). To do so, click on the Lodge with ATO checkbox. Upon clicking "Done" you will then be prompted to accept the declaration terms by ticking the checkbox:
At this stage, the basic payroll setup for the employee is complete. The employee is now able to be included in pay runs.
There are additional customisation options available once the employee has been added into the system. Click on the blue 'Details' button if additional configuration of the employee is required, for example:
- Configuring additional pay rates
- Adding additional locations
- Setting up work types
- Adding additional bank accounts/super funds
- Setting up deductions or adjustments
If you have any questions or feedback please let us know via firstname.lastname@example.org.