Mastering Apprentice Payroll and Tax Compliance
1 October 2026 · 6 min read · By Heaney Accounting
Setting Up Your Apprentice on Payroll
Taking on an apprentice is a great way to grow your trade business, but it comes with strict payroll responsibilities. You must ensure you are set up for Single Touch Payroll (STP) reporting from day one to keep the ATO happy.
- Confirming the correct award wage rates for their age and year of study.
- Collecting their Tax File Number declaration form promptly.
- Setting up automated superannuation contributions within your software.
- Verifying their residency status for tax withholding purposes.
Handling Superannuation Obligations
Superannuation must be paid at least quarterly, though many tradies find it easier to pay it alongside their payroll cycle to avoid cash flow shocks. Remember that your apprentice is entitled to super on their ordinary time earnings.
Expert Tip: Always double-check your industry award. Some trade awards have specific conditions regarding training time and schooling hours that affect whether you need to pay super on those specific non-productive hours.
- Calculate wages based on hours logged in your time-tracking app.
- Apply the correct tax table to withhold PAYG.
- Process the superannuation clearing house payment.
- Submit the STP report through your accounting software.
- Send the payslip to the apprentice before the deadline.
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