Most business owners don’t realise it — but payroll mistakes are happening in nearly every business.
According to Peter Norrie, Senior Consultant at Effective Workplace Solutions (EWS), 99% of payroll audits uncover at least one error — even in businesses that think they’re getting it right.
“99% of the time, we do find a mistake.” — Peter Norrie, HR2Go podcast
And these aren’t just technicalities. From January 2025, minor oversights could escalate into major legal consequences under Australia’s new wage theft laws.
What’s Changing in 2025: From Mistake to Criminal Offence
Under the new laws, intentional underpayment of wages becomes a criminal offence.
This includes:
– Knowing there’s an issue and choosing not to fix it
– Failing to act once a potential error is raised
– Letting compliance gaps persist after 1 January 2025
“Once you’re aware of the issue, doing nothing becomes an intentional act.” — Karen Arnold, Principal Consultant at EWS
A Real-World Wake-Up Call: What Happened in Adelaide
In a recent Fair Work case, the operators of two Vietnamese restaurants in Adelaide were ordered to pay over $800,000 in penalties and back pay after underpaying migrant workers. They also suffered public reputational fallout.
While this is an extreme example, it reinforces the message: payroll compliance isn’t just about money — it’s about trust, legality, and risk management.
Common Payroll Mistakes We See at EWS
At EWS, we’ve conducted audits across hundreds of businesses — and found that even experienced payroll teams make mistakes. Common issues include:
– Misinterpreting award classifications or minimum entitlements
– Assuming “above award” salaries mean compliance
– Skipping allowances or failing to track breaks
– Over-relying on payroll software without oversight
“Most mistakes aren’t intentional — they come from confusion about how complex awards really are.” — Peter Norrie
How a $50 Error Can Cost $30,000
A seemingly minor $50/week underpayment across 10 employees adds up to $26,000+ per year — not including penalties, interest, or legal costs.
We’ve seen this firsthand in both small businesses and national organisations. In some cases, errors stretched back years — simply because no one ever checked.
The EWS Difference: Expert, Practical, Confidential
At Effective Workplace Solutions, we don’t just run numbers — we interpret awards, assess contracts, review timesheets, and ensure your systems are legally sound.
Our payroll audits include:
– Reviewing a representative sample of records
– Identifying underpayments and overpayments
– Delivering clear, confidential reporting
– Helping you fix issues before they escalate
“A fresh set of eyes can catch what internal teams might miss — especially when they’ve been looking at the same system for years.” — Peter Norrie
What You Can Do Now to Stay Compliant
– ✅ Book a payroll audit with a team that understands award complexities
– ✅ Review employee classifications annually — especially for salaried staff
– ✅ Don’t rely on assumptions — get clear, expert advice
– ✅ Take action before the 2025 laws go live
Book a Payroll Health Check with EWS
We help Australian businesses stay compliant — and stay ahead.
👉 Book your confidential payroll audit today
Let’s fix the problems you didn’t know you had — before they become public, costly, or criminal.
Disclaimer: This article is general in nature and provides a summary only of the subject matter without the assumption of a duty of care by Effective Workplace Solutions. No person should rely on the contents as a substitute for legal or other professional advice.