Handling Payroll for Seasonal and Casual Arborist Workers
Handling payroll for seasonal and casual arborist workers can feel overwhelming when you’re juggling unpredictable hours, tight deadlines, and complex compliance requirements. You’re not alone if you’re losing sleep over whether your payroll is accurate or if you’re meeting all your obligations as an employer.
Running a tree service business means dealing with seasonal demand spikes and casual workers who might only stay for a few weeks. This creates specific payroll challenges that many arborists struggle with, especially when you’re trying to focus on the work instead of drowning in payroll administration.
Understanding Your Casual Worker Obligations
Your casual arborist workers have different entitlements compared to permanent employees, but they still deserve fair treatment and correct pay. The key difference is that casual workers don’t get annual leave or sick leave, but they receive a casual loading of 25% on top of their base hourly rate to compensate for this.
This loading applies to all casual workers, including those seasonal climbers and ground crew you bring on during busy periods. The loading must be paid for every hour worked, not just added to their total wages at the end of the week. Your casual workers also get penalty rates for weekend work and public holidays, just like permanent employees.
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Tax Obligations for Seasonal Workers
When it comes to tax, your seasonal arborist workers face the same requirements as any other employee. You must withhold tax from their pay using the tax table for daily and casual workers if they work irregular hours. The current tax-free threshold is $18,200 per year but remember that only one employer should claim this threshold if your worker has multiple jobs.
For the 2024-25 financial year, you need to use the updated tax tables and ensure you’re withholding the correct amounts. If your seasonal worker doesn’t provide their Tax File Number, you must withhold tax at the highest marginal rate, which significantly impacts their take-home pay.
Superannuation Requirements
Your casual and seasonal arborist workers are entitled to superannuation if they’re over 18 or work more than 30 hours per week if they’re under 18. The current superannuation guarantee rate is 11.5% for 2024-25, increasing to 12% from July 2025.
You need to pay super contributions for any casual worker who earns more than $450 in a calendar month from your business. However, given the physical nature of arborist work and typical hourly rates, most of your workers will likely exceed this threshold. Each quarter, you must pay these contributions by the due date to avoid super guarantee charges.
Single Touch Payroll Compliance
Every business with employees must report through Single Touch Payroll (STP) each time you pay your workers. This includes all your seasonal employees and casual workers, regardless of how short their employment period is.
Your STP reporting must happen on or before payday, and you’ll need compliant payroll software to handle this. The ATO has encouraged software providers to offer low-cost solutions specifically designed for small businesses, with options starting around $10 per month for employers with four or fewer employees.
Managing Seasonal Cash Flow Challenges
The seasonal nature of arborist work means you often need extra hands during peak periods like storm seasons or pruning schedules. This creates cash flow challenges when you’re paying casual loadings and superannuation for multiple workers over short periods.
Setting up a separate account for these seasonal payroll costs can help you manage the financial impact. Consider the total cost of employing casual workers – not just their hourly rate, but also the 25% loading, 11.5% superannuation, and any penalty rates for weekend or public holiday work.
Payroll Tax Considerations
If your total wages exceed state thresholds, you’ll need to register for payroll tax. These thresholds vary by state – in NSW it’s $1.2 million annually, while Victoria has a threshold of $900,000. Your seasonal workers’ wages count toward these thresholds, so monitor your total payroll carefully.
Many small arborist businesses won’t reach these thresholds, but if you do, you’ll need to calculate and pay payroll tax quarterly. This is separate from the income tax you withhold from your workers’ wages.
Getting Free Help and Services
The ATO offers free access to resources and tools to help small businesses manage their payroll obligations. Their online calculators can help you work out the correct tax withholding amounts, and they provide guidance on STP reporting requirements.
Many payroll software providers offer free trials or low-cost services designed specifically for small businesses. These tools can automate much of your payroll processing and ensure you stay compliant with all reporting requirements.
Ready to take the stress out of seasonal payroll? We help arborist businesses like yours get their compliance right so you can focus on growing your business instead of wrestling with paperwork. Let’s talk about how we can make your payroll headaches disappear.