A cautionary tale: Why payroll consulting requires real payroll experts

When it comes to payroll, expertise is not optional.

Payroll is one of the most complex and highly regulated functions in any organisation. It requires not just technical knowledge of legislation and awards, but a deep operational understanding of how every component interacts. A single adjustment to a roster, allowance or pay rate can have far reaching implications across superannuation, overtime, leave accruals, payroll tax and reporting obligations.

In Australia, those implications must be navigated across federal legislation and eight states and territories, each with their own nuances. This is not an environment where theoretical frameworks are sufficient.

The real risk of inexperienced consultants

Engaging a payroll consultant who lacks extensive hands on experience can expose your organisation to significant risk, operational, financial and reputational.

Increasingly, we are seeing individuals presenting themselves as “consultants” without the requisite background. Instead of bringing genuine expertise, they rely on generative AI tools such as ChatGPT to prepare reports and recommendations.

This introduces three serious concerns:

Data privacy: Your payroll data, some of your organisation’s most sensitive information, or confidential operational information, may be entered into unsecured third party platforms.

Cost vs value: If the consultant is simply using AI outputs, you are paying for content, not insight.

Compliance exposure: AI large language models alone doe not replace legislative interpretation or experience in their application. Inaccurate advice can result in underpayments, overpayments, remediation costs, and regulatory scrutiny.

Notably, Deloitte recently refunded a client after admitting it used ChatGPT to produce consulting deliverables, a timely reminder of why governance around advisory engagements matters.

Due diligence: Questions that matter

Before engaging any payroll consultant, it is essential to verify their credentials and capability. Key questions to ask include:

• How many years of hands on payroll management experience do you have?
• In which states and territories have you operated, and which awards and agreements have you worked with?
• Are you part of a team of consultants who collaborate and workshop complex matters?
• How do you manage data privacy and security for client information?
• Can you provide a recent example of a complex compliance issue you’ve successfully resolved?

Why team structure is critical

Payroll consulting should not be delivered in isolation. A one or two person consultancy is inherently limited in scope and perspective.

By contrast, a team of experienced consultants provides the ability to workshop complex issues collaboratively, cross check interpretations, and ensure that advice is robust. This collective capability is critical in an environment where compliance failures can have material financial and reputational consequences.

The bottom line

When you engage a payroll consultant, you are not just buying hours, you are buying judgement, depth of expertise, and risk mitigation.

A structured, experienced team backed by real operational knowledge will always deliver a more secure and reliable outcome than individuals relying on theory, frameworks, or AI prompts. In payroll, there is no substitute for genuine expertise.