Does payroll management feature on your Risk Register?

Business Monitor has been helping clients expand their risk management procedures with Risk Response Plans. The impetus for this has been the number of questions raised around classification of workers in recent audits by various regulators.

But, this month, with our focus on payroll and entitlements, and with the questions raised for two of our clients, by regulators, we decided to take a look at what a Risk Response Plan might look like in the payroll management compliance space.

What we have discovered is payroll does not seem to be considered a high-risk function in most of the businesses we work with, but on closer examination it is associated with significant compliance risks.

Payroll regulations, wage calculations, and constantly changing laws create complexities for small businesses that can creep up very slowly to become a huge headche.

 As always, knowing what the risks are is key to being aware, being prepared and being in a position to take decisive action.

The first question is: Does payroll management even feature on your Risk Register? For the reviews we have done to date the answer is NO!

Even if this management is outsourced it is important to keep payroll, and its associated compliance, front of mind  just in case something goes horribly wrong, and you don’t find out until a complaint is lodged.

Risk Response Plans are needed if a risk is identified. The Plan should capture actions undertaken and decisions made to control the risk.

Call us for a Discovery Moment chat to find out about Risk Response planning across all compliance areas and maybe get your risk management procedures and register checked as well!