Pay As You Go (PAYG) withholding
All businesses with employees are required to withhold PAYG tax from employees’ pay. For further information on PAYG please visit the Australian Taxation Office 
.
You may also be obliged to withhold PAYG from the pay of mature age workers working on contract. For more on the difference between employees and contractors visit the Workplace Authority .
Additional information relating to definitions of contractors and employees and taxation compliance issues are also available on the Australian Taxation Office website.
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Payroll tax
Payroll tax is different from PAYG as it is paid by the employer to the state or territory government and is based on the total amount of employee salaries paid. Each state and territory may have different payroll tax exemption thresholds and tax rates. Please contact your authority for your individual case.
Payment of payroll tax is based on the total sum of wages/salaries paid and not on the number of employees. This means you could implement job-sharing and other flexible working arrangements for mature aged workers without affecting the amount of payroll tax you pay.
Read more: Payroll tax
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Fringe Benefits Tax (FBT)
You will need to pay FBT if you give your employees benefits in place of salaries or wages, for example as part of a rewards and recognition scheme. For more information visit a section on the Tax Office website that specialises in managing employee tax essentials, or phone 13 28 66 and ask for your copy of the Tax Basics for Small Businesses booklet.
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Minimum wages and guaranteed rates of pay
Under the Australian Workplace Relations system, the Australian Fair Pay Commission is responsible for setting and adjusting minimum wages and casual loadings for employees in the federal workplace relations system.
Minimum wages are protected by the Fair Pay Commission and the federal minimum wage, which form part of the Australian Fair Pay and Conditions Standard.
Read more: Minimum wages and guaranteed rates of pay
Read more: The Australian Workplace Relations system or call the WorkPlace Infoline on 1300 363 264.
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Record keeping checklist
The Workplace Relations Regulations 2006 contain obligations in relation to the keeping of employment records by employers. As a general rule, employers should retain information (either electronically or on paper) as proof that employees have received their correct entitlements. They should also keep records on taxation and superannuation, income tax, GST, payments to employees and business payments.
Read more: Australian Tax Office requirements
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