When one of Australia’s biggest banks admits to underpaying staff—and takes a $130 million hit to fix it—you know payroll errors are no small matter.
In August, NAB revealed it would absorb the cost of widespread underpayments uncovered during a review of its payroll systems. It’s a stark reminder: even the most established organisations can stumble when payroll isn’t handled with precision.
What Went Wrong?
Like many businesses, NAB faced complex award interpretations, legacy systems, and insufficient checks. Over time, small errors compounded into a massive liability. The result? A costly back-pay exercise and reputational damage.
What Can SMEs Learn from This?
- Complexity is no excuse. Awards, superannuation, and leave entitlements are challenging, but mistakes are far costlier.
- Regular audits are essential. Payroll shouldn’t be set-and-forget. Regular reviews catch discrepancies early before they snowball.
- Automation helps—but oversight is critical. Technology reduces errors, but without human checks, gaps still slip through.
For small and mid-sized businesses, the stakes may not be in the hundreds of millions—but even minor payroll errors can cripple cash flow, trigger penalties, or spark legal disputes. And unlike a bank, SMEs don’t have the buffer to absorb such shocks.
At iKeep, we help businesses avoid exactly this kind of disaster. By combining expert oversight with streamlined payroll systems, we ensure compliance is airtight and staff are paid correctly—every time.
The Takeaway
If a bank with thousands of employees can stumble, any business can. Don’t wait for a mistake to become a crisis. Invest in getting payroll right from the start—it’s cheaper, safer, and smarter.
