First Job Checklist for Children Employment

Checklist: When your Children Get their First Job

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It’s a proud moment when your children get their first job. Getting their first job is their foray into changing their focus from being the ‘serviced’ to being ‘of service’. Whilst the excitement of where they spend their first paycheck is exciting for them. It’s worth ensuring that we help them get set-up as employees. Here is a checklist to help a proud parent help their children get sorted and ready for employment:

Tax File Number (TFN) – is a personal reference number in the tax and superannuation systems. It is free to apply for a TFN and it’s: an important part of your tax and super records, an important part of your identity – make it’s keep in a secure place, yours for life, even if you change your name, change jobs, move interstate or go overseas.

Your child doesn’t have to have a TFN, but without one they will pay more tax as the employer has to withhold tax at the highest rate.

Tax File Number Declaration Form – Once your child has received their TFN make sure to complete a TFN declaration form that the employer provides. They have 28 days after starting work to submit their declaration form to ensure they’re not taxed at the highest tax rate.

Superannuation – set up an Superannuation account for them. Canstar and Super Guide are a great place to start for a quick bit of research on which funds may suit. Once you have decided on a fund and joined up, be sure to forward through their account details to your accountant so they can also keep a record on your behalf. Note: children under the age of 18 years aren’t eligible for the superannuation guarantee if they’re working less than 30 hours a week.

Superannuation Standard Choice Form – Make sure you have filled out their employers Superannuation Standard Choice Form provided by the employer so that their employer knows where to send their superannuation payments. All employers will also have a default fund that they can set-up your child with if you haven’t already joined a Super Fund for them.

Lodging a Tax Return – If your child has had PAYG tax deducted, you will need to lodge a tax return on their behalf after the end of their first financial year if they wish to claim any refund owed. If your child does not have a TFN, you will need to get one before you can lodge a tax return on their behalf.