{"id":2087,"date":"2020-10-22T14:20:23","date_gmt":"2020-10-22T03:20:23","guid":{"rendered":"https:\/\/www.sage.com\/en-au\/blog\/?p=2087"},"modified":"2026-02-05T20:09:24","modified_gmt":"2026-02-05T09:09:24","slug":"how-prevent-wage-underpayments","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-au\/blog\/how-prevent-wage-underpayments\/","title":{"rendered":"People, process and tech \u2013 how you can prevent wage underpayments at your business"},"content":{"rendered":"
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\n\t\t\t\t\t\t\tStrategy, Legal & Operations<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t
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\n\t\t\t\t\t\tPeople, process and tech \u2013 how you can prevent wage underpayments at your business\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t

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\n\t\t\t\n\t\t\t\t\"\"\t\t\t\tTracy Angwin<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n

In recent years, the number of Australian businesses found underpaying staff has grown dramatically.<\/p>\n\n\n\n

Payroll professionals are now under increased pressure to get payroll right. While most cases of wage underpayment aren\u2019t deliberate, the problem is such that in June 2020, Victoria became the first state to criminalise deliberate wage theft. In September, Queensland followed suit.<\/p>\n\n\n\n

So why are wage underpayment cases increasing?<\/p>\n\n\n\n

The overreliance on payroll technology<\/strong><\/h2>\n\n\n\n

In my experience working with payroll professionals across Australia, one of the main contributors to wage underpayments is the \u201cset and forget\u201d approach some businesses take with their payroll technology. When underpayments occur, the excuse is often that \u201cthe system got it wrong\u201d.<\/p>\n\n\n\n

However, this is hardly ever the case. Rather, the true cause of underpayments is the people and processes surrounding the technology.<\/p>\n\n\n\n

Many payroll professionals, lacking training and guided by poor governance controls, pay almost zero attention to the outputs of payroll. They simply set up the system and process payroll without checking if the outcomes are correct.<\/p>\n\n\n\n

When errors occur, many businesses simply throw money at the problem, purchasing new payroll technology while neglecting the people and processes needed for a successful payroll operation.<\/p>\n\n\n\n

The payroll platform they use may be the most advanced on the market. But if it\u2019s never updated in line with changing circumstances, a small error can over time turn into a large, potentially incriminating one.<\/p>\n\n\n\n

So how can you ensure a smooth and compliant payroll function? Let\u2019s explore the oft ignored people and process considerations that can help minimise risk across your payroll function.<\/p>\n\n\n\n

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eBook: The Impact of Wage Underpayments in Australia<\/h2>\n\n\t\t\t\t\t\t\t\t\t
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The number of Australian organisations found <\/span><\/span>underpay<\/span><\/span>ing staff has\u00a0<\/span><\/span>grown dramatically in recent years.<\/span><\/span><\/p>\n

Download this ebook to discover:<\/p>\n