Busy trading periods often mean bringing in extra staff. Retailers may need casual employees for Christmas sales. Hospitality businesses may add workers for Easter or public holiday periods. Other businesses may hire temporary staff for EOFY, events or seasonal demand.
Whatever the reason, short-term employment still creates employer obligations. You may need to manage PAYG withholding, Single Touch Payroll (STP), superannuation, pay slips, employee records and workplace entitlements.
This guide explains the key super and tax obligations for holiday hires and other seasonal employees in Australia. It also highlights several employment requirements that can be easy to overlook when a business is hiring quickly.
Withhold the Right Amount of Tax
When you hire an employee, you generally need to withhold PAYG withholding from payments such as salary and wages. The amount withheld depends on the information the employee provides and the applicable withholding rules.
New employees can generally complete their employment commencement information through ATO online services linked to myGov, or provide the required information through the employer’s onboarding process.
Employers should use current ATO withholding information or payroll software that applies the current rates and rules. Accurate setup is particularly important when several casual or temporary employees start within a short period.
Keep Employee Tax Information and Records Accurate
Even when employee information is reported through STP, employers still need to maintain appropriate employment and payroll records.
Check employee details carefully when a worker starts. Incorrect tax information, duplicate employee records or payroll setup errors can flow through to PAYG withholding, STP reporting and your business accounts.
Provide the Required Employment Information Statements
Every new employee must receive the Fair Work Information Statement before, or as soon as possible after, they start work.
New casual employees must also receive the Casual Employment Information Statement. Casual employees must receive that statement again at certain points during their employment, with the timing depending on the size of the employer.
If an employee enters a new fixed-term contract, the employer must also provide the Fixed Term Contract Information Statement.
These requirements matter for seasonal hiring because businesses often engage casual employees or workers for a defined period.
Superannuation Obligations for Holiday and Casual Staff
Temporary or casual employment does not automatically remove an employer’s superannuation obligations. Eligible full-time, part-time and casual employees can be entitled to super guarantee.
From 1 July 2026, the super guarantee rate is 12% of an eligible employee’s qualifying earnings. Qualifying earnings are the contribution base used under the Payday Super rules.
Under Payday Super, employers generally make super contributions each payday. Contributions generally need to be received by the employee’s super fund within seven business days of payday.
Longer timeframes can apply in certain circumstances. For example, a 20-business-day timeframe can apply to some first contributions for new employees or first contributions to a new fund.
Employers should also follow applicable choice of fund and stapled fund requirements and make sure employee and fund information is correct. Incorrect details can delay or reject a contribution.
Late or missing contributions can result in the super guarantee charge and other consequences.
For a detailed explanation of the current rules, see Cotchy’s Payday Super Australia: What Employers Need to Know.
Check Public Holiday and Penalty Rate Obligations
Seasonal hiring often overlaps with weekends and public holidays. Employers therefore need to check the award, enterprise agreement or other workplace instrument that applies to each employee.
Depending on the employee and the applicable rules, this can affect minimum pay rates, casual loading, overtime, penalty rates, allowances and minimum shift requirements.
Public holidays are also covered by the National Employment Standards. Employees can have rights relating to working, refusing to work in reasonable circumstances, and payment for public holidays.
There is no single penalty rate that applies to every holiday worker. The correct entitlement depends on the employee’s circumstances and the applicable award or agreement. Employers should confirm the correct conditions before finalising holiday rosters.
Report Through Single Touch Payroll
Most employers must report employee payroll information through Single Touch Payroll. STP reports information such as salaries and wages, PAYG withholding and superannuation information to the ATO.
New seasonal employees should be correctly set up in the payroll system before their first pay is processed. This helps reduce reporting errors and makes it easier to reconcile payroll-related transactions against the business accounts.
Employers with an approved exemption, deferral or concession should follow the conditions that apply to their circumstances.
Provide Pay Slips and Keep Employment Records
Employers must provide employees with compliant pay slips within one working day of payday. Pay slips need to include required information about the pay period, payments, deductions and superannuation.
Employers also need to keep required employee records. Depending on the circumstances, these can include records relating to pay, hours worked, leave, superannuation and other employment matters.
Seasonal hiring can create a large volume of transactions in a short period. Keeping payroll records organised makes it easier to reconcile wages, PAYG withholding and super payments against your accounting records.
For broader business record-keeping requirements, see Cotchy’s Business Record Keeping Requirements in Australia: A Complete Guide.
Common Mistakes When Hiring Seasonal Staff
Busy periods can put pressure on onboarding and administration. A few basic checks can help reduce errors.
- Assuming casual or short-term employees are automatically excluded from super.
- Using an outdated super guarantee rate or old quarterly payment deadlines.
- Waiting too long to resolve rejected or returned super contributions.
- Using the wrong PAYG withholding information for a new employee.
- Failing to provide the required Fair Work information statements.
- Applying the wrong award, casual loading, penalty rate or public holiday entitlement.
- Failing to provide a compliant pay slip within one working day of payday.
- Allowing payroll-related transactions to remain unreconciled in the business accounts.
A Simple Holiday Hiring Checklist
Before the busy period begins, employers can work through a simple checklist for each new employee:
- Confirm the worker’s employment type and the applicable award or agreement.
- Collect the information needed to set the employee up correctly.
- Provide the Fair Work Information Statement and any other required information statement.
- Set up PAYG withholding and STP information accurately.
- Confirm the employee’s super fund details and applicable super obligations.
- Allow enough time for Payday Super contributions to reach the employee’s fund.
- Check weekend, overtime and public holiday entitlements before rostering.
- Provide compliant pay slips on time.
- Keep payroll and employment records organised.
- Reconcile wages, PAYG withholding and superannuation transactions in the business accounts.
How Cotchy Can Help
Hiring additional staff can increase the volume and complexity of transactions flowing through your business accounts.
Cotchy provides accounting, bookkeeping, taxation and business advisory services for Australian businesses. Accurate bookkeeping helps ensure payroll-related transactions, PAYG withholding, superannuation payments and other employment costs are correctly reflected in your financial records.
Keeping these records organised also supports accurate BAS preparation, year-end accounts and tax compliance.
If your business needs help keeping its accounts up to date during a busy period, learn more about Cotchy’s bookkeeping services.
Frequently Asked Questions
Do casual employees receive superannuation?
Eligible casual employees can be entitled to super guarantee. From 1 July 2026, the SG rate is 12% of qualifying earnings. Age and working-hour rules can affect eligibility in some circumstances.
How quickly does super need to be paid under Payday Super?
Employers generally need to make contributions each payday and have them received by the employee’s super fund within seven business days of payday. Longer timeframes can apply in certain circumstances, including some first contributions.
Do holiday hires need to be reported through STP?
Most employers report employee payroll information through STP. A seasonal or short-term period of employment does not, by itself, remove STP reporting obligations.
Do casual employees get penalty rates on public holidays?
The applicable rate depends on the employee’s award, enterprise agreement and circumstances. Employers should check the relevant workplace instrument rather than assuming one public holiday rate applies to every casual employee.
What information must a new casual employee receive?
A new casual employee must receive the Fair Work Information Statement and the Casual Employment Information Statement. A Fixed Term Contract Information Statement is also required if the employee enters a new fixed-term contract.
Need Help Keeping Your Business Accounts Organised?
If seasonal hiring is making your bookkeeping, BAS and tax obligations more complex, Cotchy can help keep your business accounts and reporting organised. Contact our team to discuss your accounting, bookkeeping and tax requirements.
Sources
Australian Taxation Office – Payday Super
Fair Work Ombudsman – Tax and superannuation
Fair Work Ombudsman – Information statements
Fair Work Ombudsman – Public holidays
Fair Work Ombudsman – Record-keeping and pay slips
Information correct as at 23 September 2026.
