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Completing an audit of your current payroll processes can ensure you’re avoiding some of the common mistakes. It can be daunting to shine a light on things you may not be doing correctly, but it’s essential to understand where processes can be improved.

Simply fill in the following form and access your Free eBook - Payroll Compliance Guide: Best Practice Handbook.
Simply fill in the following form and access your Free eBook- Payroll Compliance Guide: Best Practice Handbook.

Understanding payroll compliance

High Performing Teams

Over the past few years, payroll compliance has taken the spotlight for payroll, accounting, and bookkeeping professionals across Australia. The introduction of STP has forced many businesses to re-evaluate current processes and the software they are using to process payroll. We have also seen many large enterprises in the spotlight for breaches of payroll compliance; from wage theft to record-keeping blunders and underpayment of wages.

Many businesses are being caught out more and more frequently. The best way to avoid breaches to your business’s payroll compliance is to be proactive and complete an audit of your current payroll processes to ensure you’re avoiding some of the common mistakes. It can be daunting to shine a light on things you may not be doing the best way, but it’s essential to understand where processes can be improved and create a plan to implement change in the future.

Australian payroll legislation can often be confusing, complicated, and difficult to keep up to date. Preventing errors within payroll can save businesses a financial strain resulting from time taken to audit payroll records, fines or penalties, and a negative impact on a business’s reputation.

High Performing Teams

Over the past few years, payroll compliance has taken the spotlight for payroll, accounting, and bookkeeping professionals across Australia. The introduction of STP has forced many businesses to re-evaluate current processes and the software they are using to process payroll. We have also seen many large enterprises in the spotlight for breaches of payroll compliance; from wage theft to record-keeping blunders and underpayment of wages.

Many businesses are being caught out more and more frequently. The best way to avoid breaches to your business’s payroll compliance is to be proactive and complete an audit of your current payroll processes to ensure you’re avoiding some of the common mistakes. It can be daunting to shine a light on things you may not be doing the best way, but it’s essential to understand where processes can be improved and create a plan to implement change in the future.

Australian payroll legislation can often be confusing, complicated, and difficult to keep up to date. Preventing errors within payroll can save businesses a financial strain resulting from time taken to audit payroll records, fines or penalties, and a negative impact on a business’s reputation.

Risks of mismanaging payroll data

Fines

Fines for non-compliance can be hefty, which can affect the cash flow, and in turn affect your business continuity

Media and Lawsuits

Once a business has been identified as being in breach of ATO or Fair Work legislation and potentially taken to court, it becomes difficult for them to avoid the spotlight.

Back-payments

Along with fines for non-compliance, if it is found that employees have been underpaid, the business also must ensure that all underpayments are back paid to employees.

Your employees

Processing an accurate payroll prevents a negative impact upon your workforce. Effective payroll management (payroll processing) of employee wages and record keeping obligations can ensure a more harmonious relationship.

Fines

Fines for non-compliance can be hefty, which can affect the cash flow, and in turn affect your business continuity

Back-payments

Along with fines for non-compliance, if it is found that employees have been underpaid, the business also must ensure that all underpayments are back paid to employees.

Media and Lawsuits

Once a business has been identified as being in breach of ATO or Fair Work legislation and potentially taken to court, it becomes difficult for them to avoid the spotlight.

Your employees

Processing an accurate payroll prevents a negative impact upon your workforce. Effective payroll management (payroll processing) of employee wages and record keeping obligations can ensure a more harmonious relationship.

Common questions on payroll compliance

What is payroll tax compliance?

Payroll taxes and payroll tax compliance refers to the entire process of meeting payroll regulations and tax regulations. This means correct and timely processing of taxes withheld, income taxes, tax accounting, and employment taxes.

What is payroll compliance legislation and national minimum wage?

The Fair work ombudsman provides national employment standards, which is legislation surrounding important employment law such as minimum wage requirements. Employers must meet minimum wages and standards to ensure payroll compliance.

How can a business ensure payroll compliance?

Businesses that are handling their own payroll can hire professionals within their own departments, or make use of a payroll compliance checklist created by payroll professionals to try to mitigate errors. Alternatively, businesses may outsource payroll. Payroll services from outsourcing payroll companies can help you remain payroll compliant, and ensure you are updated on the latest payroll regulations. There are many nuances to payroll, for instance, ensuring you are following agreements on employment contracts or avoiding unpaid overtime wages. If you are unsure, always contact a professional.

How can payroll software help?

Payroll software can assist businesses better manage the entire payroll system. Payroll software can help improve payroll compliance, ensure relevant legislation is met through award interpretation, ensure minimum wages and payroll regulations are met, as well as help to account for tax regulations. This software can help collect relevant payroll data, and help maintain accurate records.

Need more help?

All advice is general in nature, for advice specific to your situation, please get in touch with one of our Payroll Partners.

Our team at Employment Innovations are able to offer tailored workplace advice. If you need any assistance with payroll processing, employment contracts, Modern Awards, enterprise agreements, workplace advice or require access to our full HR document library, contact us to speak with one of our HR experts.

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Download Your Free eBook – Payroll Compliance Guide: Best Practice Handbook

Download Your Free eBook – Payroll Compliance Guide: Best Practice Handbook