Recently, the most common issues we come across in club audits relate to payroll. The main cause of this is a lack of internal control checks performed by payroll staff to ensure employees are being paid correctly.
There has been a lot of media recently with larger companies and their payroll issues. With the interpretation of awards, enterprise agreements and management contracts, it can be difficult to ensure payroll compliance.
We recommend that management ensure that payroll officers perform the following internal reviews:
Payroll software setup.
When new employees are set up, are modelled on an existing employee.
Payrates and allowances agree to awards, enterprise agreements or contracts.
Superannuation is calculating correctly.
Leave entitlements are accruing appropriately.
In most cases where your staff can perform rechecks or even comparison of one staff pay to another, this may indicate whether an issue exists. Also, most payroll systems can export payroll reports to excel which can also assist with this review process.
Cutcher & Neale can assist your club in performing payroll reviews that may provide more detail than external audits. Your club does not need any unnecessary media attention in paying your staff incorrectly.