1 in 3 organisations have admitted to errors in employee payslips – with underpayments more common than overpayments.
Additionally, a further 12% have admitted to identifying errors that they have not corrected.
The results come from a survey of more than 630 payroll managers by the Australian Payroll Association.
“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,” said Australian Payroll Association CEO, Tracy Angwin.
Further findings
Results also indicated that the greater the employee pool, the more likely the organisation is to make payslip errors.
Almost 63% of organisations of 5000 or more employees believe they hadn’t spotted and corrected all payroll errors, compared to 27% of businesses with up to 200 employees.
Additionally, 30% of organisations admitted to accidentally paying a terminated employee.
A solution
“One of the biggest ways that organisations can mitigate payroll errors is by ensuring that their staff receive adequate education and training,” explained Ms Angwin.
“The Australian Payroll Association has developed the Certificate IV in Payroll Administration and the Diploma of Payroll Management, Australia’s first recognised payroll qualification, which can assist people working in payroll to get properly trained and qualified.”
