Payroll Auditing for Small to
Medium size Businesses

There has been a “huge shift” in public attitudes towards wage underpayment or, as it’s been termed by some parties “wage theft”. As well as this public focus – the Federal government are now preparing to introduce tough new laws to criminalise underpayment.
Fair Work Ombudsman Sandra Parker is outraged about just how many companies have failed to properly classify workers, pay their overtime and penalties, or meet superannuation contributions. Ms Parker is especially angry with Woolworths and the recent 300 million non payments in Woolworth’s employee’s remunerations. In the Ombudsman’s view, Woolworths’ failure to inform and co-operate has torpedoed the regulator’s trust.
Australia has never had a criminal system in workplace relations however due to the current long list of Corporations short changing employees and by some deemed as “wage theft” such a system is now being entertained and has become a key agenda item on the Governments priority list.

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PAYROLL AUDITING FOR SMALL TO MEDIUM SIZE BUSINESSES

 

There are many different forms of possible payroll errors or “wage theft” that include:

  • Paying under-award wages,
  • Failing to pay superannuation;
  • Failing to pay for breaks,
  • Failing to pay overtime,
  • The compulsory use of employer-provided staff accommodation or others to claw back wages,
  • Withholding of wages on the basis that it will put visa status at risk,
  • Not paying for trial or training periods,
  • Misclassifying workers as independent contractors when they are employees,
  • Not paying personal, annual or paid leave,
  • Not paying appropriately for higher duties,
  • Failing to meet basic worker entitlements in family run businesses,
  • Phoenixing-type activity, where a firm goes into administration or liquidation to avoid having to pay employee entitlements, then re-emerges under a different legal structure but with the same or related individuals in control,
  • Inappropriate deductions from workers’ wages such as inflated rent, transport costs or uniforms,
  • Charging employees for PPE,
  • Paying ‘all-inclusive’ flat hourly or daily rates without considering allowances and other entitlements,
  • Non-payment of shift allowances,
  • Requiring the employee to pay an ‘employment bond,
  • Failing to pay for ‘on call’ work periods.

Genuine Payroll errors by amicable employers can and do frequently occur. Root causes for such occurrences often vary but the main ones are:

  • Lack of understanding in employment law and employment agreements by those that administer them,
  • Lack of experience and awareness of the Australian Industrial Relations Framework by managers, CEOs and boards,
  • Incorrect interpretation and processing of Awards, i.e allowances, working hours and other,
  • Acting on instructions from senior staff who refuse to acknowledge that employment law actually even exists,
  • Acting on instructions coming from misinformed internal and external advisors and consultants,

Incorrect payroll setup (payroll errors) can also occur very easily. The main courses are likely to be:

  • Incorrect information initially passed on from HR to Payroll,
  • Incorrect initial payroll system setup and thereafter – incorrect processing
  • Poor payroll software and systems making accurate payroll difficult to administer
  • Set and forget payroll departments that sit separate from HR.
Don’t become another Company PROSECUTED by the Fair Work Ombudsman, ridiculed by an ANGRY UNION, or confronted by an ANGRY EMPLOYEE with their “Johnny come lately” law friends and end up on the WAGE THEFT WANTED LIST. Your long and hard earned reputation is much more valuable than: “FOR A FEW DOLLARS MORE”.
For an Employment Agreement, Wage and Payroll Audit contact:
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THIS IS WHY

HR

CHIEF EXISTS

HR Chief is here to assist the needs of modern business working within complex Industrial frameworks and forever changing global markets. We take the time to understand your business, your current circumstances and needs and then offer effective HR solutions to assist in the compliance, business architecture, high employee performance and growth of your organisation. With effective diagnosis of your needs we then provide and implement solutions for immediate wins, short term wins and further; long term achievement to assist in your ongoing success.

As well as HR Legal solutions we also provide high end Executive Search, Selection and Placement services when you need the right people in the right positions in your business. Discrete and confidential head hunting services are also provided. HR Chief is fully experienced with local, National and International search and recruitment so rest assured you will be getting professionals representing your brand, business and recruitment needs.

We wont forget about you. HR Chief offers interim HR Chiefs, HR Managers and/or HR advisors on a part time and regular basis who can work in your business and continue to ensure your ongoing HR needs are fulfilled. An in-house HR presence or HR expert can increase the understanding of how important it is to have compliant systems and have your people aligned to business strategy and thereafter, the positive effect on your Company’s bottom line.

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LEADERSHIP

One of our Directors will be available at all times to discuss and assist with the progress of your HR. They will be at your initial onboarding meeting in which we will discuss your objectives and our scope to assist. They will have constant contact with your HR Manager to ensure your HR is progressing and performing.

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CONTACT: HR Chief in Residence