How to run a payroll health check before a small issue becomes an underpayment

Published by SESAY · 2026-10-07 · General Australian payroll guidance

What to understand first

A health check needs a defined question, population and period. Start with how errors could arise: missing hours, outdated rates, incorrect classifications or changes that bypass review. A sample can identify warning signs, but cannot prove that every employee has been paid correctly.

Practical checks

• List pay groups, awards or agreements and unusual work patterns.
• Include new starters, changed roles, overtime, leave and recent exits.
• Recalculate selected results independently using the applicable rules.
• Expand testing when a recurring configuration issue appears.

Fictional example

A fictional hospitality group checks five Sunday shifts and finds the same incorrect pay code on three. Instead of fixing only those employees, it identifies every use of the code over the relevant period. Payroll preserves source timesheets, documents the calculation and escalates the potential underpayment for a properly scoped review.

Your next step

Write a one-page scope before testing: what is included, what is excluded, evidence required and who can resolve interpretation questions. Give findings a severity and owner. For significant or uncertain liabilities, involve an appropriately qualified adviser; a spreadsheet review is not legal sign-off.

How SESAY can help

SESAY can support data preparation, structured sampling and reconciliation, then help convert findings into repeatable payroll controls and training.

Official sources

• Fair Work — I think I have underpaid my employee

Sources researched 2026-10-07. Examples are fictional and use stated assumptions. Confirm current rules and your circumstances before acting. This is general information, not individual tax or legal advice. SESAY is independent of the regulators linked here.