What tax obligations do employers have?
Understand common tax, payroll and super obligations for employers in Australia.
Summary
Employers generally need to manage worker classification, PAYG withholding, Single Touch Payroll (STP), super guarantee and record keeping. From 1 July 2026, Payday Super changed when super guarantee is paid and how related amounts are reported.
What this means
Employer obligations begin before or when workers are engaged. Businesses need to work out whether a worker is an employee or independent contractor, withhold tax where required, report payroll information through STP and meet super obligations for eligible workers.
Under Payday Super from 1 July 2026, super guarantee is generally calculated at 12% of qualifying earnings and paid on payday, with contributions generally needing to reach the employee’s super fund within 7 business days. Employers also report year-to-date qualifying earnings and super liability through STP each payday.
Typical actions
- Determine whether workers are employees or independent contractors using the ATO’s current guidance.
- Register for PAYG withholding if required.
- Use STP-enabled payroll software and report required payroll information each payday.
- Calculate and pay super guarantee for eligible workers under the Payday Super rules.
- Keep payroll, withholding, STP and super records.
Official ATO sources
Last checked: 24 August 2026
Obligations when people work for you
Explains tax and super obligations when engaging workers.
Single Touch Payroll
Explains payroll reporting through STP.
Payday Super
Explains the Payday Super changes from 1 July 2026, including qualifying earnings and payment timing.
Related questions
- What is PAYG withholding for employees?
- What is super guarantee?
- What is Single Touch Payroll?
- What is the difference between employee and contractor?
Important notice: Tax Clarity is an independent information tool. This page provides general information based on official sources. It does not provide tax, legal, financial, or accounting advice. Tax rules can change, and how they apply depends on your circumstances. For advice about your situation, speak with a registered tax agent or qualified professional.
Need help understanding this in plain English?
Try the Tax Clarity App for a plain-English answer.