Protect your business, stay compliant, and build employee trust with better payroll practices.
Payroll is not simply the mechanics of paying staff, it is one of the biggest compliance risks facing Australian employers. A single mistake can trigger penalties from the Australian Taxation Office (ATO), unforeseen back payments, and damage to employee trust. At Astrowave we consistently see the same issues over and over. Below are the three most common payroll errors we encounter, and how you can stop them from becoming costly.
"Payroll errors are not just admin issues, they can cost your business big. Stay compliant, stay trusted." - Astrowave
Missing Payroll Deadlines
Late wages are more than frustrating, they may breach employment contracts and obligations under the Fair Work Act 2009.
Typical issues include inconsistent pay cycles, delaying termination payments, and missing end-of-financial-year declarations (which are due 14 July).
To prevent these issues:
- Build a payroll calendar that lists all statutory and internal deadlines
- Set automated reminders for managers and payroll staff
- Ensure timesheets and expense submissions are completed promptly each cycle
- Confirm termination payments and final wages meet contract and legal requirements
Superannuation Errors
Super guarantee compliance is one of the highest risk areas for employers. Mistakes here can be expensive.
Common issues include incorrect employer contributions (currently 12 percent of Ordinary Time Earnings as of 1 July 2025), treating bonuses or commissions incorrectly, miscalculating super due to manual errors, and missing deadlines. From 1 July 2026 super will need to be paid on pay day rather than quarterly, meaning employers must stay ahead of these changes.
How to stay compliant:
- Keep up to date with all ATO legislative updates
- Conduct monthly super audits rather than waiting for quarterly reviews
- Use payroll software that auto-calculates super
- Review your cash flow forecasting ahead of payday super reforms
"Super errors can add up fast. Get it right every time with proactive payroll checks." - Astrowave
Leave Entitlement Mismanagement
Leave entitlements vary by award, state, and contract type, which means mistakes are common and often costly.
Frequent errors include incorrect long service leave accruals, forgetting annual leave loading for relevant awards, and inaccurate balances due to manual record keeping.
How to avoid these issues:
- Cross-check leave accruals against the correct award or enterprise agreement
- Audit leave balances at least quarterly
- Implement systems that track accruals automatically in line with pay cycles
"Leave mistakes equal back pay, penalties, and lost trust. Audit balances regularly." - Astrowave
For the most up to date super rates head to the ATO website here.
👉 Download our free Avoiding Wage Theft: A Guide for Employers Resource Sheet here.
👉 Purchase your Employment Agreement Template here.
Need HR peace of mind?
Whether it is payroll, compliance, or people management, Astrowave is here to help.
Get in touch today for expert guidance and practical HR support.