As payroll professionals across the UK and USA come together to celebrate National Payroll Week this September, we’re taking the opportunity to recognise the people behind payroll and reflect on how the profession has evolved. From paper records, manual calculations and physical timesheets to integrated systems, automation and emerging AI technologies, the payroll profession has changed significantly. To explore this journey, we spoke to three activpayroll employees at different stages of their careers, each offering a perspective on what has changed, what remains important and where the profession could go next.
For Kimberly Morrison, Payroll Operations Manager Middle East & South Africa, the evolution of payroll spans more than three decades. Having started her payroll career in 1989, she experienced a very different working environment from the one payroll professionals operate in today.
“When I started my payroll career in 1989, payroll was very different from what it is today.”
Employee information, including starters, leavers, salary changes, overtime, bonuses and deductions, was generally communicated through paperwork, while timesheets were completed manually and physically submitted for processing. Information could even arrive by fax or telex, with no expectation of having instant access to employee or payroll data.
Payroll calculations involved a combination of manual calculations and basic computerised tools, with teams relying heavily on their own knowledge, experience and detailed checking.
There was no cloud technology, employee self-service or AI to help identify potential issues. As Kimberly reflects, payroll professionals had to develop a strong understanding of what a payroll should look like and use that knowledge to identify anything that did not appear right.
While manual processes may seem a long way removed from today's payroll environment, Jessica Crawford, Payroll Operations Manager, Americas Operations, experienced many of them early in her own career in the 2010s.
Working for a small, family-owned carpet-cleaning business, Jessica's first experience of payroll involved paper records, spreadsheets and basic accounting software. Employees recorded their hours using physical timecards, while employee information was collected on paper forms and manually entered into the accounting system.
Even collecting the information could present challenges. Jessica recalls that employees sometimes forgot to complete their timecards or accidentally walked out of the office with one still in their hand.
When payroll was due, the timecards were collected and hours were manually calculated for each employee. Taxes were calculated using printed federal tax tables before net pay was worked out individually. Payments were also largely manual, with paper cheques printed for employees without bank accounts and direct deposits manually entered into the bank.
Tax payments, quarterly filings and year-end forms were completed on paper and mailed to the relevant agencies or employees.
“Overall, at least three days of every week were dedicated to payroll-related tasks.”
When Abbi Hay, Senior EMEA Implementation Coordinator, started working in UK payroll in 2018, payroll was already being processed using online software and spreadsheets, although manual processes remained part of the workflow.
Abbi recalls using online payroll software alongside spreadsheets and paper checklists. Payroll data and changes were provided through client-specific Excel input sheets, with some information still needing to be entered manually where it could not be imported.
The checking process was also highly structured. One person would process the payroll, another would reconcile the data, and a further check would be carried out on the reports before the payroll was finalised.
These experiences show how the payroll profession has gradually transitioned from manual processes to increasingly digital ways of working. Technology has reduced the amount of manual processing, but controls, reconciliation and human review have remained central to delivering accurate payroll.
Across the three experiences, one of the clearest themes is how technology has changed the role of the payroll professional.
For Jessica, data automation, digital reporting and electronic tax filing have been among the most significant developments of her career. Digital timekeeping systems can now transfer hours directly into payroll platforms, while automated payroll and tax calculations reduce the risk of errors associated with manual data entry.
Abbi has seen similar changes through the increased use of integrations. Rather than manually entering all payroll data, information can now be imported directly into payroll systems, making processing considerably quicker.
Jessica explains that payroll roles have moved away from being heavily focused on data entry towards being more analytical, strategic and people focused. With less time spent calculating figures and transferring information between systems, payroll teams can focus on validating accuracy, improving processes, helping employees understand their pay and providing valuable data to Finance and HR teams.
Kimberly has seen this evolution on a much longer timeline. She describes the profession as moving from highly manual processes to sophisticated payroll platforms that can automate significant parts of the payroll cycle, supported by employee self-service, automated data feeds, HR and Finance integrations, online payslips, automated payments and more advanced reporting.
Technology has also contributed to the increasingly global nature of the payroll profession.
“I've also seen the payroll profession become much more global.”
Organisations can now have employees across multiple countries, with payroll teams expected to navigate different legislation, currencies, benefits, tax requirements and compliance obligations.
Today's payroll environment is more connected and automated than the one Kimberly entered in 1989 or the one Jessica experienced in the early 2010s. Data can flow between systems through integrations, payroll calculations can be automated, reporting is more sophisticated and online processes provide clearer audit trails.
However, the experiences of all three employees highlight an important point: automation does not remove the need for human oversight.
Abbi believes that importing data rather than entering it manually can help reduce human error and save considerable time but emphasises the importance of continuing to check and validate the information.
Kimberly makes a similar point from the perspective of someone who has experienced multiple generations of payroll technology. While systems can process payroll, experienced professionals still need to understand whether the results make sense.
“Technology can process the payroll, but you still need experienced payroll professionals who understand whether the results actually make sense.”
This balance between technology and expertise is particularly important as payroll becomes increasingly global and complex. Automation can streamline processes, but payroll professionals continue to provide the judgement, knowledge and oversight required to manage complex payroll requirements and identify issues that technology alone may not understand.
If digitisation and automation have transformed payroll over recent decades, the next stage could be shaped by artificial intelligence.
All three employees see a role for AI and automation in payroll, while emphasising the continued importance of human expertise.
Kimberly sees AI potentially supporting variance detection, data checking, reconciliation, compliance and routine employee queries. One of the biggest opportunities, she believes, is moving towards a more proactive approach to payroll, where unusual patterns or potential errors can be identified before payroll is finalised.
For example, AI could flag significant changes in salary, tax, deductions or hours for review, allowing payroll professionals to investigate potential issues before they become payroll errors.
AI could also help payroll teams navigate the growing complexity of global payroll and legislation by helping identify relevant regulatory changes and their potential impact.
Jessica similarly sees AI as another tool for payroll professionals, helping teams automate repetitive, lower-value tasks, improve reporting and identify potential compliance concerns.
The benefit, she believes, is that reducing administrative work could give payroll professionals more time to analyse results, solve complex issues, improve processes and support employees.
However, all three emphasise the importance of human oversight and validation as technology develops.
Abbi believes payroll should not simply be processed by AI without someone checking the results. Jessica also highlights the human element of payroll, particularly because pay can have a direct and personal impact on employees.
“Payroll may be increasingly automated, but there will always be a person on the other end receiving a paycheck.”
For Jessica, maintaining that human connection will be essential as technology develops. AI may be able to process information and identify patterns, but an automated response cannot always provide the reassurance, empathy or assistance that an experienced payroll professional can.
Kimberly takes a similar view, arguing that the future of payroll is likely to combine technology with human expertise. As automation takes on more processing, payroll professionals could increasingly focus on oversight, analysis, compliance, problem solving and advice.
The challenge will be ensuring organisations use AI responsibly, maintain appropriate human oversight and do not assume that technology is automatically correct.
Looking across the experiences of Kimberly, Jessica and Abbi, the evolution of payroll is clear. Processes that once relied on paper records, physical timesheets, manual calculations and repeated data entry have developed into increasingly connected and automated systems.
Across their responses, one message remains consistent: employees still need to be paid accurately and on time, organisations still need to meet their compliance obligations, and payroll professionals still need to understand and validate the results.
As payroll continues to evolve, AI and automation are likely to shape how the profession operates. But the experiences of our employees demonstrate that technology works best alongside the knowledge, judgement and human expertise of the people behind the payroll.
As National Payroll Week is celebrated across the UK and USA, it provides an opportunity to recognise the professionals who keep payroll moving, celebrate the contribution they make to employees and organisations, and look ahead to the future of the profession.