Pay and records

A 30-minute HR compliance audit

Pick one recent pay run and spend 5 minutes on each of six checks: award rates, employment types, pay slips and records, super, leave balances, and contracts and safety basics. Each check lists what to look at, the rule, the red flags and the fix. Anything you find goes on a list with an owner and a date, and underpayments get fixed and back paid first.

Updated 5 November 2026. General information, not legal advice.

How do I run the audit?

Take the most recent pay run, the employee list and your employment contracts, set a 30-minute timer and work through the six checks below in order, writing down every red flag you find rather than fixing it on the spot.

Sample at least one employee of each type you have: full-time, part-time, casual and any fixed term.
Include anyone who started or changed role since 1 July 2026, when the latest minimum wage increase and Payday Super both began.
Note each problem, how many employees it affects and how far back it goes. Underpayments come first because the amount owed grows each pay day.

This is a checklist, not a summary of the rules. For what is different when you have fewer than 15 employees, see small business Fair Work obligations.

Check 1: are people on the right award, classification and rate?

Every award-covered employee must get at least the minimum rate for their award classification, and award-free employees at least the national minimum wage of $26.44 an hour ($1,004.90 a week) from 1 July 2026.

Check 1 in 5 minutes
Look at	Red flags	Fix
The award and classification recorded for each sampled employee	No award recorded; classification doesn’t match the actual duties	Confirm coverage with the Fair Work Ombudsman’s award finder and reclassify
Base rate in payroll against the current pay guide	Rate not increased from the first full pay period on or after 1 July 2026	Update the rate and back pay the difference
Penalty rates, overtime and allowances on the pay run	Flat rate for weekend, night or public holiday work without a valid arrangement	Check the award; see modern award compliance

The wage review impact calculator shows the cost of a rate increase across your staff.

Check 2: are people engaged as the right type of worker?

A casual who has been employed for at least 6 months, or 12 months with a small business employer, can give written notice to become permanent, and you must consult and respond in writing within 21 days.

Check 2 in 5 minutes
Look at	Red flags	Fix
Casuals’ rosters for the last few months	Same days and hours every week for a long period	Review whether the person is still a casual; the casual vs part-time calculator compares the cost
Any casual notices or requests to convert	No written response, or a response later than 21 days	Respond in writing; use the casual conversion notice
Casual Employment Information Statement records	Not given at the start, or not repeated at the set times	Give it now and diarise the next date
Workers paid on invoices	Fixed hours, your equipment, no real business of their own	Read contractor or employee

Check 3: do pay slips and records meet the rules?

Pay slips must be given within 1 working day of pay day, and time and wages records must be kept for 7 years.

Check 3 in 5 minutes
Look at	Red flags	Fix
The date pay slips were issued for the sample pay run	Issued days later, or only on request	Set pay slips to issue with the pay run
Pay slip contents	Missing pay rate, hours, loadings, deductions or super fund; family and domestic violence leave shown	Compare with the pay slip template
Time records for casuals and part-timers	Hours paid don’t match rosters or timesheets	Reconcile and correct; see employer record-keeping obligations

If you can’t produce records the law requires, the employer can carry the burden of disproving an underpayment claim, so gaps here make every other problem harder to defend.

Check 4: is super paid on time under Payday Super?

From 1 July 2026, super guarantee is 12% of each employee’s qualifying earnings and must reach the fund within 7 business days after payday, or 20 business days for a new employee’s first contribution or a new fund.

Check 4 in 5 minutes
Look at	Red flags	Fix
When contributions for the sample pay run reached the funds	Still paid monthly or quarterly; received after 7 business days	Pay with each pay run; check with the Payday Super deadline calculator
The base super is calculated on	Only ordinary hours counted where other qualifying earnings were paid	Check the ATO list of qualifying earnings
New starters’ funds	No standard choice form given; no stapled fund request	Give the form and request the stapled fund from the ATO

Late contributions can attract the super guarantee charge. The SGC penalty calculator estimates the exposure, and the Payday Super cost calculator shows the cash-flow effect.

Check 5: are leave balances right?

Full-time employees accrue 4 weeks of annual leave and 10 days of paid personal/carer’s leave a year, pro rata for part-time employees. Casuals don’t accrue either, and you must tell employees their leave balance if they ask.

Check 5 in 5 minutes
Look at	Red flags	Fix
Accrual settings for each permanent employee	Accrual based on the wrong hours; no accrual during paid leave	Correct the settings and recalculate
Casuals in the leave report	Casuals accruing paid leave, or permanents set up as casual	Fix the employment type in payroll
Large or negative balances	Big annual leave balances; negative balances with no written agreement	Plan leave with the employee; check your award’s rules on excessive leave

For patterns of sick leave, see managing excessive sick leave.

Check 6: are contracts, statements and safety basics in place?

Every employee should have a written contract, and must have received the Fair Work Information Statement. Employers must also provide the information, training, instruction and supervision workers need to work safely, and hold workers compensation insurance.

Check 6 in 5 minutes
Look at	Red flags	Fix
Contracts for the sampled employees	No written contract; wrong employment type or award named	Issue a current contract: full-time or casual
Proof the Fair Work Information Statement was given	No record	Give the current version and record the date
Induction and training records	No induction record, or none for current hazards	Run and record an induction; the WHS record-keeping checker lists what to keep
Workers compensation policy	Lapsed, or declared wages well below actual wages	Renew and update the declared wages

The training and supervision duty is part of the primary duty of care under the WHS laws that apply in every jurisdiction except Victoria, including Western Australia’s WHS Act 2020. In Victoria it is in s 21 of the OHS Act 2004. For more, use the first aid requirements calculator and notifiable incident checker. If the audit turns up a hire done without these basics, work through hiring your first employee. If it turns up a dismissal in progress at a business with fewer than 15 staff, read the Small Business Fair Dismissal Code first.

Questions

How often should I run this audit?

No law sets a frequency. Running it after each 1 July rate change and whenever you hire or change payroll settings catches most problems early.

What should I do if the audit finds an underpayment?

Work out the amount owed for each affected employee, back pay it with the next pay run and correct the rate or setting so it doesn’t recur. Keep a record of the calculation and the payment.

What is the super deadline under Payday Super?

Contributions must reach the employee’s fund within 7 business days after payday, or 20 business days for a new employee’s first contribution or a new fund, at 12% of qualifying earnings.

Do pay slips have to show leave balances?

No, but it is good practice, and you must tell an employee their leave balance if they ask. Pay slips must not mention paid family and domestic violence leave.

Sources

Checked against these sources on 5 November 2026. Spotted something out of date? Tell us.