Industry – Hospitality & Accommodation

Life in the Hospitality industry moves fast, and payroll needs to keep up

Payroll Compliance for Hospitality & Accommodation

The hospitality sector has one of the highest rates of casual and part-time employment, with 61% of the workforce in non-permanent roles. This creates significant payroll challenges, as businesses must navigate multiple industry awards, including the Hospitality Industry Award, Restaurant Industry Award, and Registered & Licensed Clubs Award, each with its own pay conditions and entitlements.

Strict regulations around penalty rates, overtime, and shift allowances make payroll errors particularly costly—not just in compliance penalties but also in staff satisfaction and retention. Misclassified employment contracts remain one of the leading causes of Fair Work disputes, often resulting in back payments and legal action.

With hospitality accounting for one-third of underpayment cases reported to Fair Work, businesses in this fast-paced industry must prioritise payroll accuracy to avoid financial and reputational risks.

Key Industry Statistics

61% of the workforce is part-time or casual

30% of hospitality businesses have been audited by Fair Work due to underpayment risks.

70% industry turnover rate – constant payroll adjustments required.

Down-arrow

Common payroll challenges in Hospitality & Accommodation:

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

  • Multiple industry awards cover different hospitality business types
  • High staff turnover frequent hiring and firing creates payroll inconsistencies.
  • Penalty rates & overtime weekend, night, and public holiday shifts have higher pay rates.
  • Award variability multiple awards cover different types of hospitality businesses.
  • Casual vs. permanent workers different entitlements require accurate classification.

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:

  • Hospitality Award compliance audits avoid fines and ensure proper payroll processes.
  • Shift & overtime pay checks verify penalty rate calculations.
  • Payslip & timesheet audits reduce payroll errors that impact employees and your business.

Stay on top of payroll compliance, book your obligation free demo or speak with the Audit My Payroll team today:

CONTACT US
Book a demo
Help for Hospitality & Accommodation Payroll Challenges

More questions? We’ve got FAQ’s galore, or you can ask us directly ….

Get the info you’re looking for before diving in – we’re all about helping you be in control of your payroll…

Read our FAQs
Contact us