As a legal requirement, all employee and contractor records must be kept for five years. Records may be paper or electronic and must be in English. If you do decide to keep electronic records, make sure you choose a software package that meets your business needs and our requirements.

For employees or contractors, you need to keep:

•   copies of tax file number declarations or withholding declarations

•   copies of any contracts you have with contractors

•   records of wages, allowances and other payments made to workers

•   copies of payments and reports provided to the ATO

•   copies of payment summaries

•   super records, including payments you made and records that show you have met your choice of super fund obligations

•   records of fringe benefits provided, tax calculations, worksheets, declarations, elections and supporting details.

Super records to keep

You must keep records that adequately explain your super transactions, including documents that show how you calculated the amount of super you contributed for each employee. If you make super contributions under an award or employment agreement, you may have additional record-keeping obligations, so check your relevant award or regulation.

Fringe benefits tax (FBT) records to keep

You must keep records that are adequate to enable your FBT liability to be assessed. You need to keep records that show:

•   the taxable value of each fringe benefit provided to each employee and how it was determined

•   the justification of claims for exemptions or concessions that reduce your FBT liability

•   the fringe benefits provided by an associate (that associate is required to supply these records within 21 days of the end of the FBT year).

Here at The Quinn Group, our dedicated team of Employment Lawyers and Accountants can assist you with all your employment law concerns and record keeping compliance. Submit an online enquiry or call us on 1300 QUINNS (1300 784 667) or +61 2 9223 9166 for more information or to arrange an appointment.