[Australia] Small Businesses Better At Spotting Payroll Errors


A survey has revealed that larger businesses are more likely to make payroll mistakes, My Business reports.

The Australian Payroll Association conducted a survey of more than 630 payroll managers. Almost two-thirds of organisations with 5,000+ employees admitted they had failed to find and correct all errors.

Only 27 per cent of businesses with up to 200 employees were in a similar situation.

An additional 30 per cent of organisations acknowledged accidentally paying a terminated employee.

The proportion is just 10 per cent of businesses with under 200 employees and 25 per cent of those with 200-500 employees. Contrasted with 51 per cent of organisations with 500-5,000 employees and 71 per cent employing 10,000+.

According to the Australian Payroll Association’s findings, 28 per cent of organisations believe employee underpayments happen more often in their organisation than overpayments.

The results also revealed that overpayments occur more frequently within big organisations. Only 18 per cent of businesses with fewer than 500 employees make overpayments more often than underpayments, compared to 35 per cent of organisations with more than 1,000 employees.

Tracy Angwin - Australian Payroll Association CEO - said, “With the Fair Work Ombudsman frequently cracking down on companies that miss errors in employee payslips, even when these errors are oversights and not deliberate, it’s crucial that organisations do more to rectify these issues. 

One of the biggest ways that organisations can mitigate payroll errors is by ensuring that their staff receive adequate education and training. This will help to minimise the likelihood of other payroll mistakes occurring, such as accidentally paying a terminated employee.” 

Ms Angwin said she believed that having strong governance and controls also helps organisations de-risk the payroll function by ensuring they have well-documented processes to help staff understand the current legislation.