If you stop hiring workers, you'll need to finalise all of your employer tax and super obligations.
Your obligations may vary when workers leave your business. This depends on whether the worker is an employee or contractor. Director penalties can apply for unpaid super guarantee and PAYG withholding liabilities your business has incurred.
You'll need to work out your worker's final payment and pay within 7 days of the employment ending. These may include entitlement payments, employment termination payments and employee tax payments.
Once you've finalised your worker's entitlements, you should:
- cancel your PAYG withholding registration
- finalise your FBT obligations by completing either a:
- final fringe benefits tax return – if you need to pay FBT or if you've paid FBT instalments for the current year
- fringe benefits tax – notice of non-lodgment – if there are no payments to be made or instalments to be refunded.
There are no special requirements for your super guarantee obligations.
You'll also have other responsibilities to your employees, including providing notice and finalising payments. A range of information to help you manage employees when you sell or close your business is available at business.gov.auExternal Link.
There are other obligations you may need to consider when Changing, selling or closing your business.
Once you stop hiring workers, you need to make sure you've met all of your final payment and reporting obligations.