Hiring for a job that starts Monday: planning cash for the first pay run

Why does a new job create a cash gap?

Because you pay your people on your cycle, and your client pays you on theirs. Win a contract on Wednesday, hire three people on Thursday, start them on Monday, and your first pay run for them might be the following Thursday. The client’s first payment, on 30-day terms after your first invoice, might be six weeks away.

That gap is normal. It’s how growth works. The problem is only when it’s discovered on payday instead of planned for on hiring day.

What does a new employee cost before the client pays?

More than their hourly rate. Here’s what to count for the first few weeks:

Cost	When it hits	Notes
Gross wages	Your first pay run after they start	Includes the PAYG you withhold
PAYG withholding	Reported each pay cycle, paid via your BAS	Part of gross wages, but paid to the ATO
Super guarantee	Within 7 business days of payday (20 for a new employee’s first contribution)	Payday super, from 1 July 2026
Payroll tax	On your state’s schedule, if you’re over its threshold	Check your state revenue office
Workers compensation	Usually a premium adjustment	Check with your insurer
Gear, uniforms, PPE, tools	Before or on day one	Often underestimated for trades
Induction and training time	First days	Paid time before full productivity
Recruitment costs	Before they start	Ads, agency fees, checks

business.gov.au’s guide to hiring employees puts super at 12% of qualifying earnings and lists the steps: choosing the employment type, working out award pay rates, paying correctly, reporting through Single Touch Payroll and keeping records.

How does payday super change the first weeks?

Before 1 July 2026, employers could pay super quarterly, which meant a new starter’s super might not be due for months. That buffer has gone.

The ATO says super guarantee contributions must now be received by employees’ super funds within seven business days after payday. Fair Work notes a longer window for the first contribution for a new employee: 20 business days, which recognises that setting up a new starter’s fund details takes time. After that, every pay run brings its super cost close behind.

For cash planning, treat super as part of each pay run’s cost. If you pay a new crew $12k gross in their first fortnight, budget the super on top, due within days rather than at the end of the quarter.

What paperwork has to be done before the first pay run?

Getting it right avoids payroll delays that turn into cash problems. From business.gov.au’s hiring guide:

• Fair Work Information Statement, given before or as soon as possible after they start (plus the Casual Employment Information Statement for casuals).
• TFN declaration from the employee.
• Superannuation standard choice form, offered within 28 days of starting.
• Pay slips within one working day of each payday.
• Single Touch Payroll reporting each pay cycle.

If a new starter’s super fund details aren’t sorted before the first pay run, you still need to meet the contribution deadline. Chase the choice form in week one.

How do you work out the gap?

Simple version, on one page:

1. List every cost above for the first six to eight weeks of the job.
2. Map each against its date: pay runs, super deadlines, BAS dates.
3. Map the income: when you’ll invoice, and when the client will actually pay (not their terms; their habits).
4. Find the lowest point. That’s the gap you need to cover.

Then decide how to cover it: a progress payment or deposit from the client, better terms with suppliers, cash reserves, or funding. If it’s funding, arrange it before Monday, not on payday. The 8am cash check helps you track the gap once the job starts.

If you’ve already found a gap for this week’s pay run, start the enquiry today while there’s still room.

Can you ask the client for a deposit or progress payment?

Often, yes, especially for larger jobs. Many contracts include a deposit or mobilisation payment for exactly this reason. Even if the standard terms don’t, it’s reasonable to ask: “We’re hiring three people to start your job on Monday. Could we invoice a mobilisation amount now?”

The worst answer is no. The best is cash before your first pay run.

What does a funded first pay run look like?

An illustrative example. A Cairns commercial cleaning company wins a contract to clean a new hospital wing from Monday, with monthly invoicing on 30-day terms. The owner hires five cleaners on Thursday. First fortnight: about $19k gross wages plus super, cleaning chemicals and equipment of $6k, and uniforms of $1.5k. The first client payment is roughly seven weeks away.

On Thursday afternoon, with the contract signed, she enquires for $45k to cover the first two pay runs, super and set-up costs, sending the contract, statements and ID. There’s no property involved. It’s funded unsecured on Friday morning, well before the first pay run. No same-day scramble, because she planned it on hiring day.

Compare that with discovering the gap at 8am on the first payday. That’s still fixable, as our page on wages due today explains, but it’s a much tighter race, with your payroll provider’s own cut-off to beat as well.

What do lenders want to see for a new contract?

• The contract or purchase order, showing value, term and payment terms.
• Business bank statements showing your existing trading.
• Your hiring plan: how many people, from when, at roughly what cost.
• When the client pays, in practice.
• ID for directors, and property details if security is involved.

A lender funding growth wants to see that the contract is real and that it will pay the loan back. Make that easy to see. Our one-sitting document pack covers the basics.

What if the job grows faster than planned?

It happens. A client extends the scope in week two, asks for a second shift, or wants you on another site from the following Monday. Each of those means more people on the payroll before the extra revenue arrives. The gap you planned for on hiring day can double in a fortnight.

A few practical checks keep it under control:

• Re-run the gap calculation every time the headcount or hours change, not just at the start.
• Ask for a variation in writing before taking on extra staff, including when it will be invoiced and paid.
• Watch the super deadlines. Each extra pay run brings its own super cost within days.
• Talk to your specialist early if the original funding won’t stretch. Adding to a plan a week ahead is simple; doing it on payday morning is a race.

Growth is the good kind of cash problem. It’s still a cash problem, and it’s easier to solve before payday than on it.

How do you avoid paying people late while you wait for the client?

Paying staff on time isn’t optional. Fair Work says employers need to pay employees at least monthly, and pay must also meet the timing in the relevant award, agreement or contract. A client paying late doesn’t change that.

That’s why the order matters: plan the gap, secure the funding or the client deposit, then confirm start dates. If you can’t cover the first two pay runs from cash, a deposit or pre-arranged funding, it may be worth staggering start dates so the crew builds up as the money does.

Won a job and hiring for Monday?

Congratulations. Now let’s make sure the first pay run is covered. Enquiring takes about a minute, involves no credit check, and your details stay with one team rather than being fired off to several lenders.

A real person will look at the contract and your timing and call to talk through whether funding makes sense, and when. Please be accurate about the job’s value, your start date and when you expect to be paid, so we can plan the cash around the real gap.

Plan my first pay run →