Industry – Construction & Trade

Why Construction Payroll
Compliance Matters

The construction industry, with over 1.2 million employees, is one of the largest in Australia. Payroll compliance is complex due to the mix of full-time employees, contractors, and apprentices, all covered under different awards such as the Building & Construction General On-Site Award and Joinery & Building Trades Award.

Reliance on subcontracting and informal agreements can create compliance risks, leading to wage theft, underpayments, and worker misclassification. The industry’s high proportion of migrant workers increases payroll risks, as visa holders are particularly vulnerable to exploitation. Additionally, fluctuating work schedules, site-based allowances, and employment classifications further complicate compliance.

Addressing these challenges requires a proactive approach to auditing and payroll monitoring.

Key Industry Statistics

Over 1.2 million workers in the construction sector.

$2 billion in payroll errors annually in the industry.

70% of workers are covered by awards or EBAs

24.2% of the workforce are migrant workers.

Common payroll challenges in construction & trades:

As with other industries, there are specific challenges commonly faced by businesses operating within the construction sector, including:

Employee vs. subcontractor misclassification.
Incorrect site allowances and overtime payments.
Superannuation errors and compliance gaps.

Poor record-keeping leading
to compliance failures.
Fluctuating work hours payroll must adapt to project-based work schedules.
Apprentices pay compliance ensuring correct wage progression for apprentices.

If you’re facing payroll challenges like these as part of your operations, reach out to the Audit My Payroll team – stay ahead of compliance challenges and reduce risk:

TALK TO US TODAY

How Audit My Payroll helps

We’re here to safeguard you from payroll compliance risks, alleviating the stress of navigating complex regulations. With our expert support and purpose-built solutions on your side, you can feel confident and at ease in your payroll processes.

Here’s what we can do for your business:

Award & enterprise agreement compliance

stay on top of changing payroll laws.
Payroll risk assessments

identify discrepancies before they become legal issues.
Automated payroll auditing

ensure smooth operations for large and small projects.
Contractor classification reviews

minimise risk by correctly categorising workers.
Overtime & allowance calculations

ensure accurate payments for penalty rates, overtime, and travel allowances.