Is your business at risk of payroll errors?
The Fairwork Ombudsman recently secured a total of $72,800 in penalties in court against the operators of an Italian restaurant in Melbourne after they failed to comply with a compliance notice and a notice to produce records.
Since the introduction of single-touch payroll, we have seen payroll errors skyrocket, and many employers are therefore also potentially at risk of criminal charges for wage theft.
Wage theft can take various forms, including the deliberate underpayment of wages, having entitlements such as leave and penalty rates deliberately withheld, and an employer deliberately not making required superannuation contributions on an employee’s behalf.
It’s quite scary when some of the big-name companies such as Domino’s and Australian Unity can’t get it right.
Many small business operators do not have payroll teams at their disposal.
Also, not everyone is doing this deliberately. Payroll can be confusing and difficult to understand.
An easy way to ensure you’re not at risk is to have a sound understanding of the award entitlements applicable to your business and ensure regular internal and or external auditing and control measures are in place for your payroll system.
Michalle Faulkner, Managing Director, EastCoast HR Group, Suite 9, 68 Jessica Boulevard, Minyama, 5443 6022, eastcoasthr.com.au
This column is part of our Business 2 Business (B2B) series featuring industry leaders sharing their expertise. For more great articles, SUBSCRIBE to our FREE news feed, direct to your inbox daily. All you need to do is enter your name and email below.
