How to hire workers in Australia and pay them without establishing an entity

Expanding your business to include representatives on the ground in Australia can be very exciting. However, if you’re like most businesses in today’s world, you need someone to hit the ground running sooner rather than later.

If you’re wondering how to recruit and pay new team members in Australia, the good news is that you can do so without the need to establish a legal entity.

Why set up an entity?

Having a legal entity in a country where you intend to hire and pay workers can make sense if you’re a large business and want total control.

The strategy does give you longevity in the market but the time and money required to do this may not be worth the investment, particularly if you’re just getting started. You could end up committing considerable funds and resources, only to change directions within a few years.

It makes the most sense to start operating in a new market with a dedicated partner that will act as your entity in Australia. If things go well, you can progress to establishing an entity in the future.

How to hire workers in Australia without an entity

If you need people on the ground in Australia sooner rather than later, you can recruit workers and start paying them without an entity.

One option for businesses of any size is to use what’s known as a PEO (Professional Employer Organisation). This entity is already established and has the purpose of helping overseas businesses to hire employees, create contracts, comply with local regulations and pay workers.

When you use a PEO, this company is the employer of record. The benefits of this approach include:

• Relatively fast hiring process, with a recruiter ‘on the ground’ in Australia
• Lower costs to start operating in Australia
• Help with employee onboarding
• Local HR representative who understands Australian workplace laws
• Payroll service

Your PEO will work alongside your recruitment/financial teams to create contracts, hire workers in Australia and ensure they are paid on time.

Why use a PEO?

The cost of establishing an entity in a new country can be hundreds of thousands of dollars, and the process can take several months. As well as establishing the entity, you will need to find someone to help you with the recruitment process and upskill a member of your finance team so they know how to pay people the right way in Australia.

When you use a PEO, you have the benefit of an Employer of Record (EOR) and a locally based point of contact. Once you have partnered with this type of business, you can start recruiting immediately. What’s more, your PEO will assume full legal liability for your employees and handle all of the back-end administration, leaving you to focus on supporting your employees to achieve their KPIs.

You will pay a monthly fee based on the services you receive and be able to wrap up your Australian presence with minimal fuss.

Hire workers in Australia, starting now

Australia’s healthy economy and key position in the Oceania market makes it the ideal place to do business in 2022 and beyond.

If you want to install a representative or an entire team here, it makes sense to work with an established Australian PEO. This will allow you to find workers and start paying them sooner rather than later.

Side-step the cost, legal issues and lengthy wait that comes with establishing an entity. Reach out to APEO for an end-to-end service to will help you build your Australian team.