A Deep Dive into PaidRight's Health Check

Employee wage underpayments has become an increasingly large issue in recent years, with many of the country's biggest and most well-resourced companies, in various industries, finding themselves dealing with remediation projects. 

‍

Being payroll compliant can be challenging. The complex industrial relations landscape, the challenges with setting up and maintaining multiple payroll systems and dealing with thousands of employees, all have contributed to payroll compliance becoming a huge risk area for Australian businesses. 

‍

What is a Health Check 

The Fixed Price Health Check, will for the first time provide businesses in at-risk industries, the ability to gain extremely valuable insight into their current payroll compliance position, validating how you have paid your employees. 

The Health Check includes a one off review of your latest three months of payroll for 500 employees on a single modern award or enterprise agreement. 

The Health Check can be completed in less than four weeks and is charged at a fixed price of $15,000. 

‍

Why a Health Check 

In our experience, many businesses don’t have confidence in their ability to prove compliance. There is a large amount of pressure throughout the business to achieve compliance, and gaining the ability to prove compliance to stakeholders reduces a lot of that pressure. 

It should be noted that the Health Check is a one off check. However, it will put you in a position to assess where you may be at risk of underpayment or overpayment as well as put you in a good position to assess whether putting in place a regular payroll compliance control is right for your business. 

‍

The purpose of a Health Check

The Health Check is a relatively new concept in the world of payroll compliance. It focuses on providing you with the ability to prove your compliance and aims to answer the question "Can I prove that I am paying my employees in accordance with their legal entitlements?” 

The key features included in the Health Check aim to provide you with;

• An understanding of your ability to prove compliance,
• Confidence you are paying your people correctly,
• Highlight your risk factors in proving compliance.

‍

‍

What you, the customer, receives 

During the Health Check, you will receive two key reports; a Pay Compliance Analysis Report and a Business Records Insights Report. There are four key features within these reports that will provide you great visibility into your payroll; 

1. PaidRight’s 38 business record data validation checks - 38 standard data validation checks are reported on. This will give you a thorough assessment of the overall health of your business records, whilst identifying gaps and outliers in the payroll data you collect.

2. An overall pay compliance score out of 100 - providing insight into the accuracy of actual employee payments compared to what you should have paid based on your interpretation of the relevant agreement.

3. Total variance in employee pay - a detailed view into the total sum of variance as well as where variances have occurred including the number of employees that could be at risk of underpayment or overpayment.

4. Root cause analysis - insights into the root cause of employee pay variance. This includes a drill down into particular employees, pay categories, clauses or locations that are contributing to employees being at risk of underpayment or overpayment. 

‍

‍

How PaidRight is helping Australian businesses 

‍

In the past businesses have taken a somewhat reactive approach to compliance, having to undertake remediation projects after issues have started to arise and negatively impact the business. 

You now have the ability to take a proactive approach in being able to prove your compliance, and make changes to your own payroll systems and processes to improve the accuracy of employee pay. 

The Health Check is fast, accurate, totally independent and a fraction of the price of traditional approaches to the issue. It provides you with a very simple way to understand your current compliance position. 

‍

‍

Following a Health Check you should have;  

1. an understanding of your current compliance score,
2. insights into the health of your business records
3. knowledge on when, how much and why variances in pay have occurred,
4. the information to implement changes to reduce the number of employees at risk of underpayments and overpayments, 
5. started to build confidence within your business that you are paying your employees correctly.