04:05 Issue 6

04:05

ISSUE 6

A core responsibility for employers is to pay employees correctly and on time. While this may seem straightforward to do, Australia’s industrial laws are notoriously complex. Many businesses mistakenly believe that payroll software can navigate these complexities, but relying solely on it poses significant risks to payroll compliance. By Marcus Zeltzer The 6 hidden payro compliance risks in your payroll system

Australia’s industrial relations laws are among the most complex globally, posing significant challenges for businesses striving to maintain compliance. Many employers mistakenly believe that their payroll systems alone ensure compliance, but this misconception can expose them to substantial risks, such as wage underpayments and potential regulatory actions. The Fair Work Ombudsman, Australia’s key regulator, has emphasised the need for businesses to adopt a proactive approach to payroll compliance. Employers must look

beyond relying on their payroll software alone and implement additional measures to safeguard their business against non-compliance. The limitations of payroll systems for ensuring payroll compliance While payroll systems are essential for managing employee schedules and processing payments, they often fall short when it comes to complying with Australia’s intricate employment laws. Below are the key limitations: 1. Lack of independent verification One of the primary issues with payroll systems is that they lack independent

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