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Payroll Audit Services

We work with businesses to make sure payroll and HR systems are compliant, fit for purpose, and operating as intended, before small issues compound into costly problems.

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Effective HR supports over 500 Australian businesses across almost every industry and sector.

Why our payroll audits are industry leading

  • Structured, methodical reviews that go beyond surface level checks

  • Focused on how payroll actually operates, not just how it is meant to work

  • Identifies issues early, before they escalate into claims or enforcement action

  • Provides clear, plain English findings and practical recommendations

  • Supports confident remediation and long term compliance improvements

Systems and Compliance Risk

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Payroll & Compliance Audits

Payroll errors and compliance gaps can create significant financial and reputational exposure if left unchecked. Our audits provide a clear, structured view of payroll compliance and identify issues early, before they become costly problems.
 

  • Review payroll processes for compliance gaps and errors

  • Assess alignment with Fair Work, modern awards, EBA requirements

  • Indentify underpayment risks and calculation of liabilities

  • Review annualised salary and BOOT compliance

  • Clear audit findings and prioritised recommendations for remediation

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Payroll Remediation Plans

When payroll or compliance issues are identified, timely and well managed remediation is critical. We support businesses to correct errors, meet Fair Work obligations, and reduce the risk of escalation while maintaining trust with employees.
 

  • Develop clear remediation plans for payroll discrepancies and underpayments

  • Complete calculations and implementation of back payments

  • Improve payroll processes and education to prevent repeat issues

  • Management of employee concerns and communication to rebuild trust

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Selection & Implementation

Selecting the right payroll or HR system is a critical decision that impacts compliance, efficiency, and workforce management. We support businesses  to ensure that any solutions implemented are fit for purpose and compliant from day one.

  • Assess business needs and operational requirements

  • Support selection of payroll and HR systems for your workforce

  • System configuration and Award interpretation inputs

  • Process automation and control setup for confidential access

  • Internal training to build confidence and aid adoption

Our Payroll Audit Process

Our payroll audits follow a structured, practical process designed to identify risk, confirm compliance, and provide clear next steps.
Our focus is not just identifying issues, but helping businesses resolve them confidently and sustainably.

1.

Understanding your business

We start by understanding what prompted the audit, whether it’s a proactive review, compliance concern, EBA activity, or a response to identified risk.

2.

Industry and workplace context

We take the time to understand your industry, rostering patterns, working hours, allowances, and any operational nuances that affect payroll outcomes.

3.

Employee sample selection

We select a representative sample of employees across roles, classifications, rosters, and pay structures to ensure a meaningful and defensible review.

4.

Review against legal obligations

We calculate what sampled employees should have been paid under the applicable award, EBA, or agreement and compare this to actual payroll data.

5.

Record keeping review

We review timesheets, payslips, and record keeping practices to ensure documentation meets Fair Work requirements and supports compliance.

6.

Audit findings and reporting

We provide a clear audit report outlining what is compliant, where there are grey areas, and where gaps or risks exist, explained in plain English.

7.

Remediation and prevention

Where issues are identified, we work alongside you to remediate gaps and implement practical controls to prevent issues recurring.

Why Effective HR?

Support on Your Terms

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Dedicated Business Partner

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Proactive Compliance

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Every business is at a different stage, with different pressures and priorities. We offer flexible service options that allow you to access the right level of support for where you are now, with the ability to scale up or down as your needs change. Whether you require ad hoc advice, project support, or an ongoing partnership, our approach is designed to fit your business rather than force you into a rigid model. It's why our clients keep coming back.

When you work with Effective HR, you’re supported by experienced HR professionals who take the time to understand your organisation, workforce and operating environment. You won’t be passed between call centres or need to re-explain your situation every time you reach out. Consistent relationships mean better context, more practical advice, and decisions that reflect how your business actually operates.

We believe effective HR is about preventing issues before they escalate, not just responding when something goes wrong. Our focus is on identifying risks early, keeping documentation and systems current, and helping leaders make informed decisions that reduce exposure over time. This proactive approach helps minimise disputes, audits and disruption, allowing you to stay focused on running your business.

The Cost of Non-Compliance

Non-compliance with workplace laws can carry consequences that extend well beyond financial penalties. In Australia, employers operate within one of the most complex industrial relations systems in the world, where obligations are shaped by legislation, modern awards, enterprise agreements, and evolving case law. Even minor gaps can expose organisations to underpayment claims, regulatory investigations, and significant time and cost managing disputes.
 

The volume of employment-related claims continues to rise, driven in part by easier access to information, digital complaint channels, and the growing use of AI tools that help individuals identify potential underpayments or compliance issues. What were once technical or obscure risks are now far more visible, searchable, and actionable.
 

Effective HR helps organisations stay ahead of this environment. Our proactive approach focuses on identifying risks early, ensuring systems and documentation remain current, and supporting decisions that stand up to scrutiny. By embedding compliance into everyday operations, we help reduce exposure before issues escalate into claims, audits, or reputational damage.

Average Unfair Dismissal
Payout In Australia

Average cost of underpayment exposure, medium-sized employers

Liability period for back-payment
Under the Fair Work Act

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