Found a payroll underpayment? Build a defensible correction plan

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

What to understand first

Act on a credible concern, preserve records and assess its scope. Fair Work provides guidance for employers who think they have underpaid staff. Fixing one payslip does not establish that the underlying issue has been resolved; the same rule may affect other people or earlier periods.

Practical checks

• Identify the suspected rule or process failure and affected population.
• Preserve source data and document calculation assumptions.
• Obtain appropriate advice on obligations and communication.
• Track correction, employee queries and root-cause remediation separately.

Fictional example

A fictional payroll team discovers an allowance omitted for one technician. It searches for other employees with the same eligibility and pay-code setup, rather than waiting for further complaints. The employer reviews the findings, confirms amounts and plans clear individual communications without treating silence as acceptance.

Your next step

Create a case register with access restricted to those managing the review. Keep uncertain amounts distinct from confirmed amounts. Avoid making blanket assurances before the scope is established. After correction, test the next relevant pay run and document whether the original failure can recur.

How SESAY can help

SESAY can assist with data analysis, workpapers and process remediation alongside the employer’s legal and tax advisers where required.

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.