Paying People Right: Why Smart Businesses Are Running Wage Audits Before It’s Too Late

You’ve probably heard the term “wage audit” thrown around in legal updates, HR meetings, or maybe even in the media when another big brand gets called out for underpaying staff.

But here’s the truth: wage audits aren’t just for big corporates in trouble. They’re fast becoming a best-practice tool for smart, forward-thinking businesses that want to stay on the right side of the law and show they genuinely value their people.

So, what is a wage audit? Why do one? And how can you run one without turning your payroll team into full-time detectives?

Let’s break it down.

What is a Wage Audit?

A wage audit is like a health check for your payroll. It’s a detailed review of how you’ve been paying your team — checking wages, hours, penalties, allowances, super, and everything in between — to see if it all lines up with what you should be paying under the relevant award or agreement.

It’s not just about base pay. It’s about making sure all those tricky little entitlements (like weekend loading, meal allowances, and overtime) are spot on.

Why Do a Wage Audit?

Here’s the kicker: most underpayments aren’t malicious — they’re accidental. Awards are complicated. Rosters change. EBAs get updated. Mistakes creep in.

And when they do, the risk is real. Not just in dollars, but in legal exposure and brand damage.

Here’s why smart employers are choosing to run wage audits before they get tapped on the shoulder:

• To avoid fines (and headlines): Wage theft laws in places like Victoria and Queensland make underpayments a criminal offence. You don’t want to be the case study in next week’s news cycle.
• To fix small problems before they snowball: A one-off error might cost you $100. Let it run for a year across 100 staff, and you’ve got a six-figure backpay issue on your hands.
• To build trust with your team: Employees notice when you take fair pay seriously — and that trust drives retention.
• To protect your brand and board: Directors are increasingly held accountable. A proactive audit shows good governance.

How to Do a Wage Audit (Without Losing Your Mind)

Doing a wage audit manually is like trying to solve a Rubik’s cube blindfolded — messy and time-consuming.

Here’s the usual process:

1. Collect the evidence: Pull timesheets, payroll files, contracts, awards, EBAs, and rosters.
2. Work out who’s covered by what: Match each employee to the right award classification.
3. Check entitlements: Cross-check actual pay against award obligations, including allowances, overtime, and loadings.
4. Flag gaps and calculate fixes: Identify underpayments or overpayments and work out what needs to be rectified.
5. Document it all: If you ever get audited by the Fair Work Ombudsman, documentation is your best friend.

Or... you could just use Subi.

Subi streamlines the entire audit process by connecting to your existing systems and running the checks for you — using AI and legal-grade logic built specifically for Australian awards. What used to take weeks now takes hours.

Lawyers Helping With Wage Audits — Your Secret Weapon

Think of employment lawyers as your compliance safety net. When things get complex — or you're not sure how to fix what’s been found — a good lawyer can help you:

• Interpret the right award/EBA
• Review underpayment risks
• Secure legal privilege over the findings
• Advise on backpay, disclosure, or self-reporting

Subi partners with a network of top-tier law firms who use our platform to deliver faster, more accurate audits — with all the documentation wrapped up and ready for review.

Ready to Take Action?

If you're asking, “Do I need to do a wage audit?” — the answer is probably yes.

With Subi, you can run a wage audit quickly, accurately, and with support from some of the best employment lawyers in the country.

Let’s get ahead of it. Book a walkthrough and see how Subi makes wage audits simple, smart, and legally robust.