How protected is your company against payroll risks?
Payroll risk matters. Mitigate and manage it.
High profile cases across education, health and hospitality have shown that payroll malfunction can cost millions. Yet 94% of organisations said they didn’t consider risk when implementing their payroll system. Over 50% admitted that their payroll systems and processes weren’t built for their current needs.*
*Source: Ernst & Young. Global Payroll: Myth or Reality? April 2013.
Seven major risks factors to the health of your payroll
Smart organisations understand the risks and whether their systems can handle them. Start managing risk by examining your payroll set-up.
Confidential payroll data contains some of the company's most sensitive information. Is your data safe? Internal and external security measures should focus on systems, staff and technology. This includes looking at data-sharing, privacy, access and training.
System failure or data loss
To keep business running you need to be able to pay employees. Testing, backup and data recovery processes safeguard data both in the cloud and on-premise servers. Do you have robust backup and recovery plans for disasters or system failures?
Often there’s only a few people in your organisation that understand the ins-and-outs of your specific payroll and its workarounds. You need to protect the knowledge surrounding your systems’ running, configuration and maintenance.
Once in place, an organisation’s payroll processes and systems tend to remain as such for years… even after the business needs have changed. To reduce inefficiencies, evaluate your systems and processes to see if they still stand up.
Tax compliance is a vital part of payroll, with serious consequences for errors. You need confidence that you’re 100% accurate, every time. Has your system kept up with the many changes to tax legislation, awards and agreements?
Payroll costs extend beyond your headcount. You might be unwittingly leaking money and resources via wastage, double-handling or inaccuracies. Examine areas such as time capture, manual tasks, spreadsheets, information integrity and reporting.
Companies say 13% of the fraud they experienced is through their payroll.* Are your approval processes, workflows and duties watertight? Do you have alerts and mechanisms to prevent leave, hours or bank details being tampered with?
*Source: PwC. Global Economic Crime Survey: The Australian Story. 2014
Get a payroll risk assessment to identify weaknesses
Peace of mind
Gain confidence that you’re tax compliant, protected from fraud and calculating award rates and EBAs correctly.
Understand your weaknesses across your processes, controls, data security and fraud-protection.
Armed with insights you can create better systems and processes tailored to your business needs.
Robust risk mitigation cuts wastage and protects your organisation from serious loss: before it happens.