Using Compliance Monitor

How it works and frequently asked questions

Support  |  Compliance Monitor

Not giving the correct employment entitlements is a serious offence in Australia and can result in penalties, back pay and reputational damage. 

For businesses and accountants, keeping up to date with workforce legislation and ensuring those rules are applied to their payroll is challenging.

Paytools Compliance Monitor runs checks against your payroll looking for common misconfigurations and potential non-compliance against the National Employment Standards (NES).

Important note for using Compliance Monitor: Due to the complexity and changing environment of employee entitlements, Compliance Monitor is intended to be a “first pass” sweep of reviewing your setup, employees and pay history. It should be used with other audit processes to ensure your continued compliance.

Using Compliance Monitor

Compliance monitor automatically runs against your connected Xero company.

Compliance checks are broken down into the following categories:

Super Compliance

Pay items exempt from SGC
Identifies any pay items in Xero that are configured as being exempt from the super guarantee contribution (SGC). The check will automatically ignore known exempt pay items.

Employee SGC Rate check
Identifies any employees whose Super Guarantee Contribution (SGC) rate may not be set correctly.

SGC threshold check
Identifies any employee that has exceeded the maximum superannuation contribution threshold base (MSCB) for the quarter.

Pay Compliance

Minimum Wage Check
Identifies any employees who are under the National Minimum Wage. The national minimum wage applies to employees not covered by an award or registered agreement.

Leave Compliance

Annual Leave Check
Identifies any employees who have annual leave entitlements configured incorrectly against the National Employment Standards (NES).

Personal Leave Check
Identifies any employees who have personal leave entitlements configured incorrectly against the National Employment Standards (NES).


Each check will show you how many violations were found and you can drill down to view them using the ‘Show Details‘ button.

Individual violations can be ignored from future running of the checks if they have been incorrectly identified.


Hope you found this article helpful! If you have any additional questions about compliance monitor, get in touch. Our friendly Melbourne-based team is always happy to help.