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ISSUE 7
such as the rationale behind overtime payments or how meal breaks were tracked. Regularly reviewing and improving processes for maintaining precise records of pay, hours worked, and breaks is crucial for ensuring compliance and being well-prepared for potential audits. 11. Understand and manage pay codes for long service leave Businesses must confirm that pay codes in their payroll systems correctly reflect the factors that count towards LSL entitlements. If there is uncertainty about which codes should be included, it may be worth seeking expert advice. Ensuring that pay codes align with entitlements is a foundational step for compliance, particularly for part- time and casual employees who may have unique entitlements. 12. Audit internal processes for interpreting industrial instruments Interpreting industrial awards and agreements can be complex, so it’s important to establish or refine a clear process for this. Consider conducting an external audit to verify that internal practices are applied correctly and consistently. Since it’s difficult to assess your own work, an external review offers a fresh perspective and can uncover potential compliance issues
that might otherwise be overlooked. Publicised underpayment claims serve as a reminder that employers cannot solely rely on individuals or payroll products to ensure pay compliance. Even the most experienced and knowledgeable teams are susceptible to human error. This checklist is designed to help Australian businesses strengthen their payroll compliance. By reviewing it, businesses, even globally can celebrate the holiday season with confidence and enter the new year with a plan to reinforce their compliance foundations for long-term, future-focused success.
Author: Kirsty Martin
Kirsty Martin - Head of Customer at Yellow Canary
- is an expert in Australian payroll compliance. With over 15 years of experience in payroll operations, Kirsty is passionate about solving compliance problems using automation technology, compliance expertise, and effective relationship building. Prior to joining Yellow Canary, Kirsty was a leader in payroll compliance, services, and operations. She later moved into consulting at a Big 4 firm, advising on end-to-end payroll optimisation for some of Australia’s leading brands in finance, manufacturing, and FMCG.
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