According to the head of the peak payroll body, an alarming number of Australian companies are non-compliant and not meeting statutory requirements, putting employers at risk.
According to the head of the peak payroll body, an alarming number of Australian companies are non-compliant and not meeting statutory requirements, putting employers at risk. This is compounded by companies using inefficient payroll practices, and having unqualified staff to manage what is a very complex process.
Australian Payroll Association (APA) managing director Tracy Angwin, sounded a warning to company directors, chief financial officers and HR managers over the urgent need for all businesses to come up to speed on their payroll obligations or risk serious consequences, including substantial penalties and brand damage. “The fact is that most businesses are not taking their payroll obligations as seriously as they should be, and are failing to leverage payroll as an asset of the organisation,” Angwin commented. “We can see that through payroll disasters, such as the rollout of Queensland Health’s flawed payroll system, which could ultimately cost taxpayers up to $1.2 billion, and the $20 million payroll fraud at retailer Clive Peeters.”
Angwin said that changes to the Fair Work Act at the end of 2012 meant that businesses needed to be fully compliant on their payroll systems or they risked substantial fines from the Fair Work Ombudsman.
“There is simply no margin for error, but unfortunately a large number of the people employed in payroll do not have proper payroll qualifications. They have usually fallen into a payroll career; but this is exposing their organisations to serious risk,” Angwin added.
A perusal of recent Fair Work Ombudsman (FWO) investigations reveals a startlingly high number of payroll incidents. In March alone FWO reported:
