---
title: Wage underpayment FAQS
description: Wages underpayment has become a pressing issue in the Australian economy. Several large businesses have admitted to having (often inadvertently) underpaid
---

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# [Wage underpayment FAQS](https://www.cutcher.com.au/insights-and-news/wage-underpayment-faqs)

 Written by [Cutcher & Neale Accounting and Financial Services](https://www.cutcher.com.au/insights-and-news/author/cutcher-neale-accounting-and-financial-services) | 25 March 2021

Wages underpayment has become a pressing issue in the Australian economy. Several large businesses have admitted to having (often inadvertently) underpaid staff.

The Australian Accounting Standards Board has released Staff FAQs – Remuneration underpayments to remind entities of the standards that might apply when accounting for underpayments.

Three questions posed and answered are:

- In what year should the payments be recorded?
- How do I determine whether any prior-year payments are material and require a restatement of the financial statements? and
- What disclosures are required?

View the document [www.aasb.gov.au/admin/file/content102/c3/FAQ_WageUnderpayments_07-20.pdf](http://www.aasb.gov.au/admin/file/content102/c3/FAQ_WageUnderpayments_07-20.pdf)

If you would like to discuss this further with one of our assurance team members, please contact us.

** **

 

[View full post](https://www.cutcher.com.au/insights-and-news/wage-underpayment-faqs)

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