{"id":6403,"date":"2023-12-19T06:18:00","date_gmt":"2023-12-19T06:18:00","guid":{"rendered":"https:\/\/www.tokntechnology.com\/global?p=6403"},"modified":"2023-12-19T06:18:00","modified_gmt":"2023-12-19T06:18:00","slug":"prevent-wage-theft-and-avoid-these-common-mistakes","status":"publish","type":"post","link":"https:\/\/www.tokntechnology.com\/global\/prevent-wage-theft-and-avoid-these-common-mistakes\/","title":{"rendered":"Avoid these common payroll mistakes"},"content":{"rendered":"\t\t
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We get it, the holiday season is here and you are excited for a well deserved break- but hold on! This is also the busiest time for payroll teams. With banks being closed during public holidays, this means payments need to be issued earlier to ensure employees are paid on time. This requires more time and preparation, and with\u00a0<\/span>Christmas and the New Year approaching right around the corner, employees are taking time off which can make it challenging to get the necessary payroll information from them. In a nutshell, payroll during this time of the year can be hectic! The last thing you want is to have to deal with delays or staff being underpaid as a result of payroll errors, resulting in unhappy employees. Fortunately, there are ways to alleviate some of this pressure.<\/span><\/p>

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Ensure a smooth payroll run over the holiday season by avoiding these common mistakes<\/b>,\u00a0so that your payroll run doesn’t turn into a nightmare<\/span>.\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Putting off annual leave to the last minute<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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Ensure your employee’s annual leave balance is correct and that they have enough hours to cover for the time\u00a0 off they have asked for. Stay up to date and organise your payroll early to prevent headaches during the holidays.\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Using outdated systems<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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A lot of the time, underpayment issues come from businesses that are still using outdated payroll systems which rely on manual, repetitive admin task. Using outdated payroll systems can lead to issues being overlooked such as failure to note overtime, leave, the age of the employee – which can lead to overlooking their entitlements, which can then lead to breaches of employer obligations. Therefore, having an updated system that can automate these processes and update when necessary can help prevent payroll issues while boosting efficiency. Today, many businesses are transitioning to digital timesheets<\/a> to better manage their payroll quicker than ever.\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Lack of understanding- employees' entitlements<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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Knowing your employees rights is crucial. With young workers and low income workers experiencing the highest rates of underpayment, encouraging them to learn and familiarise themselves with the law and their rights is beneficial for them as well as you, as an employer or business owner in case if a payroll error were to occur and they are unable to identify it.\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Not tracking overtime<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Overtime payment errors can occur when the employer\u00a0misses a payment when employees spend time travelling between sites, work during break times, or when they are required to participate in activities outside of work hours. This may include team building days, training, office parties.\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Misclassification of employees' title<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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Employers should analyse their employee’s role, qualifications, experience and training. Mistakes can arise when employers fail to recognise these points or when an employee changes position. For example, treating a permanent part time employee as a casual worker and therefore not granting them their entitlements as a part time worker such as paid leave. To avoid this, employers should discuss with their employee their title and responsibilities at the point of hire or when moved to a new position.\u00a0\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Interns and work experience<\/h4>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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Vocational placements are periods of work experience\u00a0required to be completed as part of an individual’s training course or education. Students completing placements are not considered employees.\u00a0<\/span><\/p>

Student placements are lawfully unpaid, if the vocational placement meets all the criteria <\/a>under the\u00a0Fair Work Act 2009<\/a>.\u00a0<\/p>

As long as the individual is not in an employment relationship, then unpaid work experience or unpaid internships that are not vocational placements are fine.<\/p>

So, what counts as an employment relationship?<\/p>

Some things to consider:<\/p>