Payroll | The 5 most common payroll mistakes - and how to avoid them

Payroll - we all know it's a fundamental pillar of any business, ensuring employees are paid accurately and on time. We also know it's a thankless task that only ever gets attention when things go wrong.

And when things go wrong, boy do they go wrong. The consequences can be severe, not just for employees but for businesses themselves. Recent payroll blunders, like the BBC’s £4 million overpayment error, highlight just how high the stakes can be.

And although most firms don’t err as severely as Broadcasting House, payroll errors remain alarmingly common. Research from Remote, a global HR solutions company, found that four in ten employees (40%) have been paid incorrectly in the past year, with one in ten affected by overpayments. Meanwhile, over 90% of UK businesses admit to payroll mistakes every month, exposing them to compliance risks, financial losses, and reputational damage.

With significant payroll changes on the horizon - including National Insurance contribution increases and a major minimum wage rise in April 2025 - HR managers must be more vigilant than ever. 

Kevin Fitzgerald, UK MD of cloud-based HR, payroll & benefits platform Employment Hero, has seen firsthand how payroll mistakes can derail businesses. Here, he shares five of the most common errors and how to prevent them…