Incorrect calculations, underpaying superannuation and only paying the base rate on annual leave payments. Inadequate training for payroll managers is often the reason behind errors, and the most common mistakes that lead to underpayments are listed below:
- Incorrect calculations in overtime provisions.
- Underpayment on termination.
- Failing to pay overtime penalty rates to part-time employees.
- Superannuation underpayments.
- Only paying the base rate on annual leave payments.
- Excluding commissions and bonuses from long service leave.
- Lack of payroll reviews and outdated systems.
To view the CPA Australia article in full, click here.