5 signs your payroll needs reviewing: Spot the issues costing your business time and money

Payroll is one of those functions that many business owners set up early on and rarely revisit. As long as employees are paid on time, it can feel like a job well done. Payroll is more than just a monthly task, it's a vital part of your business that impacts compliance, cash flow, employee trust, and even long-term planning.

In this article, we explore five key indicators that it might be time to review your payroll setup. Whether you manage it in-house or rely on software, understanding these signs can help you keep things running smoothly and confidently.

1. You’re always up against deadlines

If payroll feels like a race against the clock every month, this could be a sign that your system isn’t working as efficiently as it should.

Things to watch for:

• Last-minute data submissions
• Delays around holidays or team absences
• Frequent deadline stress

When payroll becomes a recurring pressure point, errors are more likely to slip through. It’s worth reviewing your internal processes. Are roles and responsibilities clearly defined? Is data captured and shared in good time? Small improvements here can save time, reduce stress, and lower your risk of non-compliance.

2. You’re not fully confident in compliance

Payroll compliance can be complex and ever-changing. From National Minimum Wage and holiday pay rules to pension auto-enrolment and off-payroll working (IR35), keeping up with regulations is essential.

Ask yourself:

• Are you confident your team’s pay meets all current legal requirements?
• Do you know when the latest payroll thresholds or legislation were updated?
• Are pension contributions being managed correctly?

If you're unsure, it might be time for a payroll health check. Even small oversights can lead to penalties or reputational damage, so regular reviews are key to staying on track.

3. Staff frequently question their payslips

If employees regularly raise concerns about their pay, this can affect morale and indicate potential problems with accuracy or communication.

Common red flags include:

• Unexplained deductions or incorrect tax codes
• Missed overtime or inconsistent hours
• Confusing or unclear payslips

Mistakes can happen, but consistent issues may point to gaps in your process or software. Reviewing your payroll setup could help improve accuracy and rebuild employee trust.

4. Your business has grown but payroll hasn’t

Growth brings change, and that includes payroll. More employees, varied contracts, new benefits, all of these add layers of complexity that need to be managed.

Signs payroll hasn’t kept pace:

• Still relying on spreadsheets or manual calculations
• Difficulty onboarding or offboarding staff efficiently
• No centralised system for storing payroll information

As your business evolves, so should your payroll processes. A review can help ensure your systems are fit for purpose and scalable for future growth.

5. You’re not gaining insight from payroll data

Beyond the numbers, payroll data can provide valuable insights into how your business is operating. Yet many businesses underuse this information.

Questions to consider:

• Can you easily see trends in overtime, absenteeism, or staffing costs?
• Are you using payroll data in financial forecasting?
• Could more visibility help with decision-making or planning?

If your payroll system only handles the basics, you may be missing out on insights that could improve efficiency and strategic planning.

Payroll is worth revisiting

Payroll may sit quietly in the background, but its impact is far-reaching. It touches your people, your processes, and your bottom line. Reviewing it periodically, especially during periods of growth or change, is a smart move for any business.

Whether you manage payroll internally, use software, or work with an external provider, staying proactive helps you remain compliant, efficient, and in control.

How we can help

At Ward Williams, we work with businesses to ensure their payroll is accurate, compliant, and aligned to their needs. Our team can support you with everything from ad hoc advice to fully managed payroll solutions.

If you think your payroll could benefit from a second look, get in touch with our Payroll team to start the conversation. Call us on 01932 830664, email enquiries@wardwilliams.co.uk or visit www.wardwilliams.co.uk