Outdated Payroll Technology Causes Major Errors, New Study Finds

Many payroll departments are overwhelmed with old programmes that are unable to handle modern data demands. This leads to an increase in mistakes, such as incorrect tax calculations and delayed salary deposits. According to new information from CloudPay’s Tech-Talent-Equilibrium study, about 4 in 10 leaders have problems tied to older payroll software.

One troubling result is the amount of time professionals spend on just fixing errors. A separate poll from the same provider found 85% struggle to handle corrections, which are complicated further when systems cannot communicate properly. This frequent patch up work pulls energy away from other tasks.

Conventional platforms often lack automated checks, forcing teams to turn to manual procedures that can boost the risk of mistakes. With more businesses hiring across multiple locations, these shortfalls are especially noticeable. Old systems also tend to block efficient data sharing, which hampers smooth operations.

Companies that offer payroll software in the UK include:

1. Rippling
2. Pento
3. Deel

Is A Shortage Of Skilled Staff Making Things Worse?

Staff with more payroll knowledge are difficult to find right now. Many experienced individuals either switch to other finance roles or are stretched thin across large teams. CloudPay points out that most businesses with over 9,000 employees report issues attracting new talent in payroll.

Since old systems lack modern features, new hires often feel unprepared to handle day-to-day problems. This intensifies the strain on existing personnel, who then have even less time to research better tools or training paths. As a result, departments often feel stuck with the same old processes.

In many cases, staff are so busy fixing payroll mishaps that there’s little room to plan for digital upgrades. This cycle becomes self-perpetuating, as neglected platforms trigger more errors, prompting more urgent fixes. CloudPay calls this a vicious loop that drains both time and patience.

Do New Platforms Have A Solution?

CloudPay’s research shows that many organisations see advanced payroll tech as an excellent protective measure against staff shortages. Automated systems can detect errors early, handle compliance updates, and give teams more breathing space. It is true there is no magic fix, though modern platforms can reduce the burden on overworked personnel.

One prominent benefit is the way next-generation tools communicate with other business software. Rather than re-keying large volumes of data, payroll specialists can make use of integrated dashboards that assemble figures automatically. This cuts down on human input and speeds up monthly payouts.

Real-time alerts also help stop a small discrepancy from mushrooming into a major miscalculation. For instance, if tax rates alter or an employee’s status changes, an alert draws attention right away. That means fewer frantic corrections and greater accuracy across the board.

How Can We Strengthen Payroll Teams And Technology?

More qualified payroll workers can guide system upgrades and spot areas that need extra care. Their input is needed for customising automated solutions to specific regulations so each detail is correct. Yet investment in these employees often falls behind spending on software, as managers rush to patch immediate issues.

Many large companies turn to external providers that use both advanced software and trained payroll professionals. This arrangement helps them tap into the best of both worlds. Teams gain a quicker path to deployment, and specialists handle tricky compliance rules and system integrations.

John Pearce, Chief Customer Officer at CloudPay, said, “A balance between relying on payroll people and utilising technology needs to be struck, however, this equilibrium can only be achieved if professionals are able to spend the right time on the right tasks. With the majority facing daily struggles with correcting errors which can – and arguably – should be prevented through appropriate API-led integrations and AI, there is a clear benefit to tackling the technology barrier sooner rather than later.”

He added, “Our Tech Talent Equilibrium report revealed that 77% of those working for very large organisations are facing difficulties with payroll talent shortages, on top of the outdated technology they are battling against. Payroll teams will find themselves going round in the same circle unless they can break the cycle and demonstrate to their business why investment in the right tech and people today, will streamline efficiencies and costs tomorrow.

“Seamless API integrations, combined with the use of AI and the automation of more repetitive, process-driven tasks, deliver significant value and eliminate much of the errors that are taking up valuable time, for example. Those that tackle this now, will be in a far more competitive position in the future.”