It’s no secret that payroll is complex, time-consuming, and can be prone to errors. Add constantly changing legislation into the mix and it’s no wonder many companies get caught out by payroll non-compliance.
Recent legislative changes in Australia and New Zealand have made it more crucial than ever for payroll teams to stay up to date with the latest regulations. Two prime examples are the Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 that was introduced in Australia to improve working conditions for casual and temporary workers, and New Zealand’s Holidays Act 2003 which is undergoing its most significant overhaul in two decades.
As a result, it’s essential for payroll teams to stay up to date with changing legislation and avoid relying on second-hand information, which can increase the risk of errors and inaccuracies in payroll calculations and lead to potential legal and financial liabilities for your organisation.
There are five ways payroll teams can stay up to date with legislative changes and keep your business running smoothly:
1. Attend industry events and training
Encourage your payroll team to attend conferences, seminars, and classroom-based training to stay across legislative changes. These events often feature presentations by subject-matter experts who provide updates on changes to legislation, as well as insights into how these changes will affect payroll operations. They can also provide valuable opportunities to network, share best practices, and learn about new tools and technologies that can streamline payroll operations.
2. Subscribe to government and industry updates
By subscribing to newsletters, your payroll team will receive email alerts and links to online resources and other publications. Provided by trusted government agencies and industry associations such as the Australian Payroll Association and New Zealand Payroll Practitioners Association, your people will get access to timely information about changes to employment law, taxation rules, superannuation regulations, and more. These updates also provide context and analysis of new legislation, helping payroll teams understand the implications of the changes and how they affect their organisation.
3. Modernise payroll systems
As senior finance and HR leaders, you understand the financial and reputational risks associated with non-compliance. By investing in modern payroll systems that can quickly be updated in response to changes in legislation, you can ensure that your organisation stays compliant and avoids costly penalties.
4. Review and audit payroll processes
When reviewing and auditing payroll processes, payroll teams can identify areas where their processes may not be compliant with current legislation. By doing so, they can proactively make changes to ensure they keep up with legislative changes and avoid non-compliance. Payroll audits can also help teams identify any historical non-compliance issues that need to be addressed, ensuring that payroll systems comply with current regulations.
5. Consult with experts
Engaging accredited payroll and compliance experts helps you gain a deeper understanding of current legislation so you can manage payroll operations effectively. By leveraging their expertise, payroll teams can ensure they are compliant with regulations and avoid costly penalties. This approach can also free up time for higher return-on-investment (ROI) activities, such as improving employee engagement, and helping to build advocacy with payroll teams.
Legislation is changing — don’t be left behind!
From hiring, to leave entitlements and overtime, payroll teams need to stay on top of the latest legislation to ensure accurate and timely payroll processing. Failing to comply with relevant regulations can lead to a number of issues, including penalties and fines, reputational damage, and potential legal and financial liabilities.
While attending industry events and subscribing to government and industry updates are effective ways to keep up with changing legislation, there is no guarantee that this will make your business compliant. For complete compliance, expert guidance is invaluable.
Affinity’s managed payroll service lets you streamline payroll processes while limiting errors and achieving compliance. Our modern, market-leading technology is designed to meet the complex legislative requirements faced by businesses in Australia and New Zealand by delivering automation that reduces reliance on key people, eliminates duplication, and improves accuracy.
Payroll legislation is vast and complex, and it pays to get it right every time. To keep up to date, contact the Affinity Payroll team today.
For over thirty years, Affinity has been a trusted partner for mid-market and enterprise businesses in Australia and New Zealand, empowering them to transform their payroll operations. With a focus on turning payroll from a cost into an asset, we have established ourselves as industry leaders in delivering innovative cloud-based payroll software and exceptional payroll services.