Act in good faith and treat employees fairly
Allow employees to raise concerns and respond to them immediately. If you have an issue with an employee, discuss it with them as soon as possible and clarify any uncertainties.
Pay employees on time
Perhaps the biggest of your employment responsibilities is on payday. Pay employees the right amount, on the day and frequency stated in any contract. Use the method of payment the employee signed up to.
Deduct the correct amounts
Deduct the correct amounts for income tax, payroll tax, and benefits. Be sure to deduct the right amount for each pay period based on your employee’s earnings.
Get leave and federal holidays right
Get familiar with the main types of leave. These might include:
- Vacation time
- Sick leave
- Bereavement leave
- Parental leave
- Jury duty
- Federal holidays
You need to understand the number of days employees are entitled to. Also learn what pay rate is required by law if, for instance, an employee works on a federal holiday. It may be different from their normal pay.
Health and safety responsibilities of employers
You are legally required to keep employees healthy and safe at work.
Employer responsibilities include providing:
- a suitable work environment
- safe systems of work
- safe equipment and training for handling risks
- monitoring of your employees’ health and safety at work
A health and safety specialist can help create a workplace health and safety plan for your business.
Protect the privacy of your employees
You may need to ask for each employee’s permission to keep sensitive data. Keep that information safe and secure and avoid passing it onto unauthorized people. You must give them a copy of the information you hold about them if they ask.
Xero does not provide accounting, tax, business or legal advice. This guide has been provided for information purposes only. You should consult your own professional advisors for advice directly relating to your business or before taking action in relation to any of the content provided.
How to hire employees
Hiring help can improve your business, and your lifestyle. But it’s a big process. Here are the main things to keep in mind.
- Know your employer responsibilities
You have a duty of care to your employees. Get familiar with your employer responsibilities before you start the hiring.
- Register as an employer
You’ve considered the position you want to fill and your own responsibilities. It’s time to register as an employer.
- Write a job description
You want the perfect employee. They want the perfect employer. Find out how to write a job description that stands out.
- The recruitment process
Now the applicants are lining up. So how do you sort through them all and select the best fit for your business?
- Employee onboarding
Employee onboarding is more than orientation. It’s setting expectations, building relationships, and providing support.
- Run payroll for your employees
Paying your employees right is essential. It’s also a legal requirement. Let’s take a look at the payroll process.
- Manage employee evaluations
Your employees need support too. They need to know if they’re on the right track. Employee evaluations help with that.
- Tools and guides for your business
Now that you’re an employer, you want to strengthen your business. Xero’s got resources and solutions to help.
Download the guide to hiring employees
Learn how to hire employees and how to handle the admin that goes with it. Fill out the form to receive this guide as a PDF.