Is Your Payroll Hiding a Silent Threat That Could Cost You Everything?

Think payroll is just a routine back-office chore? Think again. With sweeping legislative shifts—from gender pay gap reporting to auto-enrollment mandates—the payroll game in Ireland is no longer about punching the clock; it’s about dodging hefty fines, dodgy audits, and serious reputation bruises. So here’s the million-dollar question: Can your in-house payroll team really keep up, or is it time to rethink that model before things spiral outta control? Hilary Larkin from Forvis Mazars breaks down why payroll isn’t just about hitting deadlines anymore—it’s a high-stakes balancing act demanding razor-sharp compliance know-how, tech savvy, and legal smarts. Spoiler alert: many Irish businesses are finding their internal setups stretched too thin to nail it. Feeling that pinch? You’re not alone—and there might just be a smarter way forward. LEARN MORE

Irish businesses should rethink in-house models, writes Hilary Larkin of Forvis Mazars

As the regulatory landscape continues to evolve, payroll has emerged as a growing area of risk and complexity for businesses.

Far from a back-office function, it demands a level of accuracy, responsiveness and compliance that is stretching in-house teams and exposing organisations to growing operational and reputational risks.

This evolution is being driven by a stream of legislative changes.

Recent and upcoming developments — from Enhanced Reporting Requirements (ERR) and gender pay gap disclosures to the expansion of statutory sick pay, updates to benefit in kind (Bik) rules and the rollout of auto-enrolment — have elevated payroll from a monthly admin task to a year-round compliance obligation.

The risks of falling short are rising.

Inaccurate filings, missed deadlines or inconsistent treatment of employee benefits can trigger Revenue audits, financial penalties and legal disputes.

These pressures are leading many Irish businesses to question whether their internal payroll models are fit for purpose.

Payroll demands more than punctuality.

It requires fluency in regulation, proficiency with cloud-based systems and the ability to interpret guidance from both Irish and EU authorities.

Payroll professionals must also be attuned to internal controls and fraud prevention, as data protection and employee trust are at stake.

This hybrid skillset — combining technical, legal and digital expertise — is in short supply.

Many in-house teams, particularly in small to medium-sized enterprises (SMEs), are overstretched and under-resourced.

Where one person is responsible for payroll without backup or formal succession plans, any absence or error can lead to severe business disruption.

Automation and AI are part of the conversation, but they are not a standalone solution.

The risks of miscalculation or non-compliance are simply too high to be fully delegated to technology solutions.

Moreover, the adoption of AI must be aligned with the organisation’s data governance frameworks, risk appetite and forthcoming obligations under the EU AI Act.

Businesses must remain mindful that any payroll tool, no matter how advanced, is only as good as the governance that surrounds it.

The consequences of poor payroll management go beyond the financial.

As reporting obligations around gender pay and benefit disclosures increase, any inaccuracies or delays can impact employer branding, internal culture and external reputation.

Employee trust can quickly erode when payroll errors become a habitual occurrence. In this environment, proactive compliance is essential.

However, achieving this internally requires ongoing investment in systems, training and resourcing, which many businesses find difficult to sustain, especially during periods of rapid growth.

Against this backdrop, payroll outsourcing is gaining traction as a practical, cost-effective solution.

A provider offers more than software and processing; it provides peace of mind.

The right partner delivers:

 ■ Up-to-date compliance knowledge and regulatory monitoring.

 ■ Scalable solutions for growing or multi-jurisdictional teams.

 ■ Technology-enabled services with built-in compliance controls.

 ■ Business continuity in the event of audits or staffing changes.

 ■ Access to wider advisory support in areas such as employment tax, global mobility and HR compliance.

This model enables internal teams to refocus on business-critical initiatives while also mitigating distracting payroll delivery risks.

For SMEs and larger organisations alike, it’s a way to bridge the skills gap without expanding headcount.

Despite its strategic importance, payroll remains underrepresented in higher education.

Aside from programmes offered by the Irish Payroll Association (IPASS), few academic pathways prepare graduates for careers in this space.

There is a strong case for integrating more modules into undergraduate business or HR degrees.

The demand for payroll professionals is growing.

Those who invest in upskilling — particularly in areas such as compliance, technology and analytics — will be well-positioned for career growth in a field at the crossroads of finance, HR and governance.

Payroll is no longer simply about paying employees — it’s about protecting the business.

As regulation expands and expectations rise, Irish companies need to reassess their approach.