Consider Brent and Jane’s case
Brent and Jane have recently purchased a winery in the Macedon Ranges. They are concerned about their obligations pertaining to new employees on working holiday Visas during picking season.
After speaking with their accountant they are aware of the need to complete a Special Withholding Form for non-resident employees. This enables them to withhold tax at 15% for the first $37,000 of income earned by each employee. If any employees earn over $37,000 tax would need to be withheld at ordinary rates.
Superannuation is required to be paid for all eligible employees, as such Brent and Jane need to ensure their new employees have superannuation paid at 9.5% on gross earnings. Foreign employees may apply to the ATO to release their superannuation (less tax) after departing Australia.
Brent and Jane should also consider whether their current WorkCover insurance covers the new employees.
Should you wish to discuss your payroll needs please feel free to contact Andrew Marshall or Janine Orpwood on 5427 8100 for an initial consultation.