Payroll Audits
Our consultants at Effective Workplace Solutions specialise in reviewing payroll and other employment law-related matters to help small, medium, and large businesses mitigate risk and ensure compliance. Not only can a payroll review save you thousands, even millions of dollars, but it can prevent damage to your company’s reputation.
When we do a payroll review, we conduct a review of the employees’ pay against the requirements of the relevant modern award and/or any applicable enterprise agreement (if one exists) and other employment documentation. During the audit, we consider pay rates, hours worked, the consistency of the hours worked, and whether this is within the scope of an employee’s classification and job duties (if this information is available to us).
In our experience, we have found that many underpayment disputes result from businesses incorrectly interpreting the award or misunderstanding their obligation under the award. This puts the company at risk of financial burdens for wage underpayment and employers can be sentenced up to 10 years in jail for wage theft (in Queensland and Victoria). Whether intentional or unintentional, underpayments to staff are treated the same in the Australian legal system.
How Your Business Can Benefit From Regular Payroll Reviews
There are no legal requirements regarding payroll reviews, however best practice suggests conducting a payroll review at least once per year. The sooner you catch errors, the less time and money you’ll spend correcting them.
Some of the benefits of having a regular payroll review includes:
Fewer Compliance Errors
With the information provided from your payroll review, you can correct any errors or mistakes before an external party takes action.
Happier Employees
Compliant payroll processes provides your employees reassurance that your payroll department understands their obligations and that they are being paid correctly. It also demonstrates your business is looking after them, which leads to happier employees.
Fraud Identification
Payroll reviews can help you identify any fraudulent activity.
Earlier Removal of Former Employees
Data on former employees can take up needless storage space in your payroll software, but payroll reviews can help you retrieve this space by identifying employees who are still in your system even though you’re no longer paying them.
Let Us Review Your Payroll For Compliance
Contact us today to get your payroll review started!