Australia
Employer of Record & PEO in Australia
Hire & manage teams remotely in Australia without a local entity. We handle HR compliance, payroll & taxes so you can focus on your business.
Native Language
English
Employee Protection
High
Payroll Frequency
Monthly
Capital city
Canberra
Termination
Hard
Internet
Fast
Currency
Australian Dollar (AUD)
Immigration
Easy
English Speaking
>90%
Population
25.39 Million
Employment Cost
High
Cost of Living
High
How NNRoad Employment & PEO Services Work?
NNRoad provides professional employment organization (PEO) & employer of record (EOR) services for companies looking to hire and manage teams in Australia. Registering a legal entity in Australia as a means for employment is an outdated practice that takes both time (months) and money (thousands of USD). NNRoad’s employer of record and PEO services enables companies to hire and manage employees in India in full accordance with local labor laws in under a week.
Employer of Record in Australia
Employer of Record (EOR) services are for companies who do not have a legal entity in Australia, but who want to hire in Australia. Employment and full liability are outsourced to NNRoad.
➊ You interviews & select the candidates you want to hire in Australia.
➋ NNRoad arranges a local labor contract with your new employee.
➌ NNRoad arranges a service contract between your organization & NNRoad.
➍ NNRoad organizes, manages & processes payroll in Australia in full compliance with local employment laws.
➎ You maintain a normal working relationship and manage your team in Australia while NNRoad manages payroll & HR liabilities.
- Engaging contractors on behalf of your organization by acting as an employer of record
- Fully compliant engagement for PAYG (Pay as You Go System where employer must withhold payroll tax) and Pty Ltd Contractors
- The signing of employment contract
- On-boarding via dedicated customer portal, including background screening processes
- Off-boarding processes/leave management
- Complete payroll solution and statutory benefits administration
- Employee management – employee record retaining, time keeping, bonus and allowance management, expense and claim, leave employee management according to the local law
- Mandatory social insurance (Australian superannuation fund or retirement saving account) to the local laws
- Professional indemnity and public liability insurance coverage
- Workcover insurance, if required by the local laws
- Local individual income tax reporting, if needed
PEO in Australia
Professional Employment Organization (PEO) services are for companies who have a legal entity in Australia, and want to outsource their payroll. Employment liabilities are shared between your organization and NNRoad.
➊ You interviews & select the candidates you want to hire in Australia.
➋ NNRoad organizes, manages and processes payroll for your local employees in full compliance with local employment laws.
➌ You maintain a normal working relationship and manage your team in Australia while NNRoad manages payroll & HR compliance.
- Establishing tax-efficient salary structure and adjusting pay cycle per request
- Registration of the necessary company and personnel information for payroll calculation in the payroll software and system:
- Raw data collection and cleaning including processing raw payroll data with respect to leaves, increments, bonus pay, variable pay per-diems, & salary advance, if any, given or recovered
- Determination of statutory deductions (TAS under income tax act, ESI, EPF, PT, VPF and Labour Welfare Fund contributions) based on employee pay for withholding taxes, state and other central taxes & contributions to social security schemes
- Local social security (Employee Provident Fund, Employee State Insurance, Professional Tax, and Gratuity) bureau registration, if applicable
- Set up payroll policy, maintenance, and update
- Maintain employee records accordingly to the requirements by local government
- Providing access to the payroll system
- Set up bank instruction for payment
- Monthly and quarterly payroll processing
- Year-end adjustments and annual declaration
Advantages of NNRoad's Australia Employment Services
- With EOR/PEO solutions you can manage client meetings, sales, quality control, marketing, R&D and customer support without a local company in Australia.
- Pay as you go
- Dedicated account manager – One point of contact for multiple locations
- Employment & termination processing
- Complete payroll solution and statutory benefit according to local laws
- With EOR/PEO solutions you can hire staff while waiting for the registration of your company in Australia.
- NNRoad only works with professional locally licensed partners
- GDPR compliant
- NNRoad manages employee record timekeeping, bonus and allowance, expenses claims and personal leaves according to local law.
- NNRoad provides foreigner VISA application services, if needed
Employment Compliance in Australia
Taxes & Payroll in Australia
Employee Income Taxes:
Individual income tax rates in Australia are based on progressive tax brackets. Incomes at or bellow AUD18,200 per year are not taxed.
Tax Brackets
0%: AUD0 – AUD18,200
19%: AUD18,201 – AUD37,000
32.5%: AUD37,001 – AUD90,000
37%: AUD90,001 – AUD180,000
45%: AUD180,001 and above
Sample Calculation
Yearly income = AUD100,000
37% * 10,000 = 3700
32.5% * 43,000 = 13,975
19% * 18,800 = 3572
0% * 18,200 = 0
3700+13,975+3572+0 = 21,247
Yearly income tax = AUD21,247
Employer Costs in Australia
Employer Contributions:
Employers must pay income taxes based on the salary of their employees:
10% – Superannuation AKA Superguarantee (capped at AUD21,000 per year)
5.45% – Payroll Tax
1.0% – Medicare
Working Hours in Australia
Working Hours per Week
According to the National Employment Standards (NES) of Australia. The legal maximum working hours per week in Australia is 8 hours for full-time employees. Note that maximum legal working hours can vary by industry in certain countries. Contact us for more detailed information.
Overtime Laws & Regulations
Overtime compensation varies based on the industry. Australia has a list of 122 industries with various mandatory overtime rates and “modern awards” which states the employment terms for each industry. Employees that are not entitled to overtime rates must still be compensated for overtime work. Employees working overtime on regular workdays are guaranteed 150% of regular wages. Employees working Sundays are guaranteed 200% of the regular wage. When working in Australia, employees can ask for time off instead of overtime compensation.
Benefits & Insurance in Australia
Pension Fund
Employees in Australia benefit from a pension fund known as the Superannuation AKA the Superguarantee. This is an employer cost set at 10 % of the employee’s salary (capped at AUD21,000 per year).
Healthcare Insurance
Medicare healthcare insurance is a mandatory employer cost set at 1% of the employee’s salary.
Termination Laws in Australia
Severance
Severance in Australia is only provided in cases of redundancy, when an employee’s job becomes redundant either through technology or cost reductions.
Notice Period
Employers in Australia must provide employees with a minimum statutory notice period between 1-4 weeks in the event of termination.
- Employed for 1 year = 1 week’s notice
- Employed for 1-3 years = 2 weeks notice
- Employed for 3-5 years = 3 weeks notice
- Employed for more than 5 years = 4 weeks notice
Public Holidays in Australia
Public Holidays in Australia
- New Year’s Day – January 1
- Australia Day – January 26
- Canberra Day – March 14
- Good Friday – April 15
- Easter Sunday – April 17
- Easter Monday – April 18
- Anzac Day – April 25
- Reconciliation Day – May 30
- Queen’s Birthday – June 13
- Labour Day – Oct 3
- Christmas Day – Dec 25
- Boxing Day – Dec 26
Paid Leave in Australia
Employees in Australia are entitled to 4 weeks or 20 days paid leave annually. Untaken leave accumulates, is not capped and does not expire.
Employment Contract in Australia
Labor Contract
Contracts must follow the regulations set by the National Employment Standards but can be agreed upon either verbally or through a written contract.
Probation Period
Employers can put their employees on a probationary period to assess if employees are suitable for the role and business. The employer decides on the length of the probationary period which can range from a few weeks to a few months not exceeding 1 year.
During a probationary period, employees receive the same entitlements as an employee, not on probation.
Types of Leaves in Australia
Sick Leave
Full-time employees in Australia are entitled to 10 days of paid sick or personal leave per year.
Maternity Leave
Full-time employees in Australia are entitled to 12 months of unpaid maternity leave. The maternal employee can request an extra 12 months of unpaid leave for a total of 24 months of unpaid leave.
Paternity Leave:
Full-time employees who are new fathers are entitled to 5 days of unpaid leave starting from the birth of their newborn child.
Childcare Leave:
Under the Federal Government’s paid parental leave scheme, eligible employees and new mothers who pass an income test, a work test and meet residency rules, are entitled to up to 18 weeks’ paid leave at the minimum wage.
Bereavement leave
Bereavement leave refers to leave taken as a result of a loss of someone in the employee’s immediate family or in the case of a miscarriage. Full-time employees in Australia are entitled to 2 days paid leave each time.
Immigration Laws in Australia
Immigration Requirements
Employees must have a 457 visa to work in Australia. Employees and employers must have an agreement or employment contract before the employee enters Australia.
