Payroll Advisory
Independent advice for complex payroll challenges and workforce compliance risks.
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From workforce compliance reviews and wage underpayment investigations to payroll transformation and transaction support, we help organisations manage payroll risk, complexity and change with confidence.
Payroll is an increasingly complex and business-critical function, with the potential to create significant operational, financial and reputational risk. Australia’s industrial relations framework, characterised by modern awards, enterprise agreements, active regulators and evolving compliance expectations, presents challenges that extend beyond payroll systems and processes. Combined with legacy technology, resource constraints and heightened regulatory scrutiny, organisations may be exposed when industrial obligations are not fully understood or governance arrangements fail to keep pace with change.
McGrathNicol helps boards, executives, payroll teams and legal advisers navigate payroll complexity, change and risk, whether they are assessing payroll exposures in a transaction, reviewing payroll operations, implementing new systems or responding to wage underpayment matters.
We help with:
Payroll Due Diligence & Sample Testing – Identifying payroll risks, compliance issues and potential underpayment exposures with targeted reviews and testing.
Payroll Function Reviews – Enhancing payroll performance, governance and operational resilience through independent assessment of payroll processes, controls and operating models.
Payroll Systems & Implementation Support – Supporting payroll system selection, implementation and optimisation to reduce project risk and improve business outcomes.
Wage Underpayment & Remediation – Assessing, investigating and remediating wage underpayments while strengthening governance and controls to reduce the risk of recurrence.
We combine deep operational payroll experience with forensic and data analytics expertise to help organisations identify risks, navigate complexity and implement practical solutions that withstand scrutiny.
Payroll FAQs
How do I know if my organisation has a payroll underpayment risk?
Warning signs of payroll underpayment risk can include manual workarounds, legacy or poorly configured payroll systems, complex award or enterprise agreement coverage, high levels of payroll exceptions and a lack of regular compliance reviews. Organisational change, system implementations and evolving industrial obligations can also increase the risk of payroll errors. A targeted payroll compliance review can help identify potential exposures early and provide confidence that payroll processes, systems and controls are operating as intended.
When should payroll be assessed as part of a transaction?
Payroll should be assessed early in the due diligence process, as payroll compliance issues and wage underpayment exposures can have a material impact on valuation, deal structure and post-acquisition liabilities. Engaging payroll specialists as part of the financial or operational due diligence helps identify, quantify and assess payroll risks upfront, reducing the likelihood of unexpected liabilities after completion.
What happens if we discover a wage underpayment?
If a wage underpayment is identified, the priority is to understand the issue, accurately quantify the exposure and determine the root cause. Organisations should then develop a remediation approach that addresses affected employees, meets regulatory obligations and strengthens controls to reduce the risk of recurrence. Engaging independent advisers early can help ensure the response is robust, well-governed and capable of withstanding regulatory, legal and stakeholder scrutiny.