Overview: What is a Casual Employee?
A casual employee is someone who is engaged by the hour with no firm advance commitment to continuing and indefinite work. Under Australian modern awards, casuals are entitled to a 25% casual loading on top of their base hourly rate. This loading is paid instead of providing paid leave entitlements such as annual leave or sick leave.
Step 1: Set Up the Employee Profile
The system uses the employee's personal data to trigger correct tax scales and junior pay rates.
Choose the employee from the Team screen
Click on the "Employment Details" tab
Select Casual as the “Employment Type” section
Note: All casual employees will automatically have the 25% casual loading added on top of their base rate.
Step 2: Select Award, Classification and Pay Rate
Select the relevant award under the Award Details section.
Enter in the employee's pay rate with one of the following options:
Selecting their classification level under the "Classification" option.
Selecting "Override award hourly rate".
Ticking "Flat Rate (IFA)" and entering in a default rate.
Click Update at the bottom of the page to save any changes.
Note: When overriding the award hourly rate in the award settingsor providing a default rate in the IFA settings, enter in the employee’s base rate excluding the casual loading. PaySauce will automatically add the 25% loading on top.
Provide Employees With Mandatory Information Statements
As an employer, you are legally required to give every new casual employee two specific documents before or as soon as they start work :
Fair Work Information Statement (FWIS): Covers general workplace rights.
Casual Employment Information Statement (CEIS): Specifically explains casual rights and the pathway to permanent employment.
These documents can be downloaded from the Fair Work website.
⚠️ This will have to be handled externally from PaySauce
Timesheet Minimum Engagement
If your employee is being paid under an award, PaySauce will enforce minimum payments per shift.
For example, employees under the Pastoral Award will have the following apply:
Standard Casuals: A minimum of 3 hours per shift will be paid, even if they work less.
Secondary Students: A minimum of 2 consecutive hours. If a timesheet is entered for 1 hour, the system will automatically adjust the payment to the relevant minimum.
Superannuation for Casuals
Casuals are entitled to superannuation guarantee contributions (currently 12% as of July 2025) on their Ordinary Time Earnings (OTE), which includes the 25% casual loading.
Enter the employee's USI and Member Number in the Superannuation section.
Superannuation will automatically be paid when the pay run is closed.
Note: Employees under 18 who work less than 30 hours do not receive superannuation. PaySauce will automatically not accrue superannuation in this situation.
Compliance Note: Employee Choice Pathway
Since 26 August 2024, the "casual conversion" rules have been replaced by the Employee Choice Pathway.
Eligible casuals can notify you in writing that they wish to change to permanent employment after 6 months (or 12 months if you are a small business employer).
You must respond in writing within 21 days. Review your "Casual Anniversary" reports regularly to prepare for these notifications.
⚠️ This will need to be handled externally from PaySauce