Why payroll record keeping matters for small business owners
As a small business owner in Australia, staying compliant with workplace laws isn’t just good practice — it’s essential. The Fair Work Ombudsman (FWO) is currently conducting spot checks across cities like Sydney, Melbourne, Perth, Hobart, Adelaide and Cairns to make sure small businesses are keeping proper payroll records. If you employ staff, now’s the time to check your paperwork is in order.
Why It Matters
Failing to maintain proper employee records can land you in hot water. The FWO has already issued over 760 fines in a single year, totalling nearly $1 million. Penalties can be as high as $9,390 for a single business. These fines usually stem from missing or inaccurate records such as payslips, rosters or evidence of correct employee entitlements.
What You Need to Keep
You must record key details like:
Employee name, start date, employment type and pay rate
Hours worked, overtime, bonuses, deductions
Leave taken and balances
Superannuation contributions and workplace agreements
Circumstances of employment termination
These records need to be kept confidential, accurate, and for at least 7 years. They should be available in English and easily accessible in case of an FWO inspection.
Tips for Staying on Track
Good record keeping isn’t just about compliance - it can also save you time and stress during audits or disputes. If managing the books isn’t your strong suit, hiring a reliable bookkeeper can make all the difference. They’ll ensure your documentation is clean, legal, and up to date so you can focus on growing your business.
If you need advice or assistance, get in touch today, and follow us for more tips.
Disclaimer
This information is intended to be general in nature and is not personal financial advice. It does not take into account your objectives, financial situation or needs. Before acting on any information, you should consider the appropriateness of the information provided in relation to your own circumstances.
