The focus on industry payrates and underpayments is growing. The major political parties are committing to drive on the increasing of pay rates and elimination of underpayments over the short term. “In 2020, PwC estimated around 13 per cent of Australia’s total workforce were affected by underpayment, with higher rates in certain industries, such as the hospitality sector.” By ABC business reporter Rhiana Whitson
Businesses needs to review their potential for being investigated and audited for underpaying their staff. Substantial reputation and financial risks may be hiding in the background of your business.
Inzenius’ process for pre-costing the rosters through its system inbuilt comprehensive payroll award interpreter tool may help reduces these risks.
We are seeing many cases where businesses found to be underpaying staff having to back pay them for as much as over the previous 6 years. The ABC report highlighted that the underpayments have been systemic in many industries for many years.
One thing is for sure that to fulfil on the major political parties’ commitments on wages improvements, is in my opinion are going to see the heightening of the focus on underpayments.
Phase 2 of Single Tough Payroll (STP) reporting delivers to the ATO and maybe their agencies data that may highlight in real time potential underpayments.