14 January 2022
Polyglot Group and its Head of Corporate Services, Laura Sobron, have prepared a quick but detailed manual on the pillars of payroll compliance.
Businesses today are expected to understand and remain up-to-date on a wide range of Employment and Labour regulations that govern their activities.
In point of fact, employers who do not stay on top of their payroll obligations are at risk of financial penalties, interest fees, lawsuits, or even losing your business altogether.
Whilst the risk of getting a payroll wrong might feel scary and overwhelming, getting a better understanding of the ins and outs of responsibilities should help. This is especially true when dealing with foreign payroll and laws.
What is payroll compliance?
Payroll compliance encompasses all federal, state and local regulations that mark how employees are paid.
It covers everything from hiring & ending employment, salary & leave entitlements, bonuses, and more. It also directly links to payroll tax and accounting, meaning there is legislation to be considered.
Employers that violate any of these laws may face penalties that could negatively affect their bottom line or put them out of business.
Learning how to navigate payroll compliance can help you avoid tax trouble and maintain positive workforce morale.
Why is payroll compliance important?
There can be heavy penalties for wage theft that can lead to reputation damage, significant fines and potential jail time. In addition, the Fair Work Ombudsman (FWO) can inflict its own penalties.
As of 2020, both the Victorian and Queensland state governments passed legislation that has made wage theft a criminal offence.
Sometimes it’s as simple as a slightly off system configuration that could lead your business to a serious breach. These breaches can go unnoticed for years and, when found, can make or break your business.
With the tightening of Australian legislation and the public tolerance wearing thin, no organisation or industry is safe from a payroll compliance crackdown.
Payroll compliance is complex and time-consuming, but Polyglot Group has outlined the following requirements to simplify it.
Read the complete guide here.