How much time is wasted fixing a payroll error? - Wageloch


How much time is wasted fixing a payroll error?


Research firm CFO has found that “the best-performing organizations take, at most, two to four days to resolve a payroll error. The worst performers need five to 10 days, or more.”

That’s bad for employee morale – and it takes time and resources away from your core business.

As expert partners of payroll, we know that it is important to “get it right the first time” and this is backed up by CFO’s report, which says “it’s all about best practices, or process” and stresses the importance of using technology.

In recent months in Australia, we have seen how payroll errors can snowball into front page headlines. Consider the following facts:

  • One-third of Australians are being underpaid superannuation. The worst offenders include hospitality, manufacturing, mining and construction.
  • “Nearly 200 staff at George Calombaris’ restaurants have been underpaid $2.6 million, with the celebrity chef blaming “historically poor processes” for the bungle.” The problem went on for an incredible six years. Even more amazing is that 50% of staff were overpaid their base salary. Colombaris has written that off.

You can see how costly mistakes can be!

We take pride that our solution automatically applies Award rules and pay rates, and reduces human error.

However, it’s important to understand that technology alone is not the solution. When you set up a new payroll system, entering the correct rates of pay as determined by Award rules is absolutely critical. If you get this step wrong, problems can go unnoticed for years. As the old saying goes, “rubbish in, rubbish out” … or words to that effect.

WageLoch takes the attitude that set up is very personal. No two businesses are exactly the same and owners and managers have different strategic priorities. We work closely with clients to configure each system correctly from the start. Over many years we have mastered the intricacies of award interpretation to the point that our solution is superior when compared to competitors.

Of course, Awards change and we commit to staying involved with you to help you stay up to date. And if you are ever the subject of a Fairwork audit, the system keeps digital copies of all your information and historical data accessible, in compliance with government mandated record-keeping requirements.

If you would like to know more, please contact us today.

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