GLOBAL PAYROLL MAGAZINE
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verification. Payroll systems tend to audit their own work without external checks, which increases the likelihood of errors going undetected. Just like a company auditing its own financial statements —without external oversight, errors can persist, leaving employers vulnerable to underpayment claims. 2. Limited pay period reviews Most payroll systems only assess one pay period at a time. However, many modern awards and enterprise agreements in Australia contain provisions that span multiple pay periods. For example, the General
Retail Industry Award limits employees to a maximum of 19 shifts over a four- week cycle. Payroll systems that evaluate fortnightly pay cycles risk overlooking these broader provisions, which can lead to error and non-compliance. In one case, an Australian employer was required to backpay $3 million due to system limitations that failed to account for 10-minute breaks. 3. Lack of transparency While payroll systems automate calculations, they often leave out the detailed work behind those calculations. Payroll teams may be presented with high-level data—such as whether an
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