Disaster Strikes.
It’s Monday morning. You’ve just arrived at the office, coffee in hand, when your phone pings. It’s your payroll administrator – and the news isn’t good. They’re in hospital, out of action, and payroll is due tomorrow.
You pause. Payroll can’t wait. People are expecting their pay to land on Tuesday morning. You look around the office. Who else can step in? The answer: no one. There’s no documented process. No handover. No one trained to take over. The knowledge lives with one person – and now they’re unavailable.
Suddenly, you’re facing a very real dilemma. Your options?
- Drive the payroll administrator’s laptop to the hospital and ask them to process payroll from their bed.
- Try to figure out the payroll system yourself.
- Call in an external payroll support team and hope they can help – fast.
It’s a scenario few organisations plan for… until it happens. But it happens more often than you’d expect.
Despite payroll being critical to compliance, staff wellbeing, and legal obligations, it’s often handled by just one person. And when they’re suddenly unavailable, there’s no easy fix.
What You Need to Know…..
- Payroll disruptions are more common than you think and most businesses aren’t prepared.
- Depending on one person is risky especially when no one else knows the process.
- Payroll is more than admin. It’s compliance-heavy and must be handled with care.
- External support provides continuity which is essential during absences or peak periods.
- Documentation matters yet it’s often missing until it’s too late.
It’s a scenario few organisations plan for… until it happens. And by then, it’s already too late.
Payroll Is Business-Critical. So Why Isn’t It Treated That Way?
Payroll isn’t just a routine back-office task. It’s the process that keeps your people paid, your business compliant, and your reputation intact.
Yet in many organisations, payroll sits precariously on the shoulders of one person. If they’re sick, on holiday, or suddenly unavailable – there’s no safety net.
Even worse, the payroll process itself is rarely documented. That means there’s no guide, checklist, or fallback plan. Just one person’s working memory. And when they’re gone, so is all that operational knowledge.
We’ve seen it first-hand. When several staff at Rotorua Lakes Council resigned at once, panic ensued. The payroll process lived in someone’s head – now inaccessible. Alxemy was called in to urgently document the process and provide support. But it’s a situation that could have been avoided.
The Hidden Complexity of Payroll
On the surface, payroll might seem like a predictable task. But dig deeper and you’ll find:
- Complex legislative requirements like the Holidays Act and PAYE calculations.
- Confidential employee data that demands strict privacy controls.
- System quirks and workarounds that only your payroll person understands.
- High-volume periods such as EOFY or new system rollouts that stretch even seasoned teams.
It’s not something you can hand off to ‘whoever’s free.’ And it’s certainly not something you want to get wrong.
When payroll fails, the consequences are immediate:
- Staff aren’t paid correctly – or at all.
- Compliance risks snowballing.
- Trust is eroded.
- And if a worst-case scenario unfolds, you could be looking at media scrutiny, legal issues, and reputational damage.
Payroll Support Services: The Third Option (and the Smart One)
This is where payroll support services come in.
Whether you’re facing a short-term absence or need long-term assistance, a payroll support partner like Alxemy offers:
- Continuity – ensuring payroll is processed accurately and on time, no matter the disruption.
- System familiarity – working within your current systems and processes, not overhauling them.
- Compliance confidence – meeting legislative requirements without putting internal teams at risk.
- Scalable capacity – providing extra hands during high-volume or high-pressure periods.
Think of it like business continuity insurance – except it’s proactive, cost-effective, and people-focused.
Why Documentation Matters (And Why So Few Have It)
Another overlooked risk? Lack of documentation.
Most businesses don’t formally document their payroll processes. Not because they’re careless, but because no one thinks to – until disaster hits. It’s an invisible liability hiding in plain sight.
A good payroll support service can help here too. At Alxemy, we’ve worked with clients to:
- Map out payroll processes step-by-step.
- Identify single points of failure.
- Build out backup plans.
- Train secondary resources.
That way, even if someone is unavailable, the show can go on – and staff get paid without panic.
“The most overlooked risk in payroll isn’t a system failure – it’s the absence of a documented process when you need it most.”
Be Ready Before You Have to Be
We’re not saying your payroll person is going to disappear tomorrow. But wouldn’t you rather be prepared?
Payroll support isn’t just for emergencies. It’s about resilience, trust, and peace of mind – for your business and your people.
So next time you ask: “What would we do if our payroll person wasn’t here?” – don’t default to unrealistic options.
Avoid option 1: (hospital-bound payroll).
Avoid option 2: (winging it solo).
Choose option 3: a trusted payroll support partner who’s ready when you need them most.
Need Help With Payroll Contingency or Coverage?
Whether you’re preparing for leave cover, navigating a high-volume period, or simply want to reduce your payroll risk – Alxemy can help.
Talk to us today about building a resilient, documented payroll function – so you’re never caught off guard.
Visit www.alxemy.co.nz/payroll-processing
Or Contact Us for a confidential chat.
Key Takeaways:
- Payroll is critical and complex – yet often managed by just one person, with no backup plan in place.
- Unexpected absences can derail payroll – leading to missed payments, compliance breaches, and loss of employee trust.
- Most payroll processes aren’t documented – creating serious business risk if the sole administrator is unavailable.
- External payroll support services offer continuity, compliance, and peace of mind – whether for short-term cover or ongoing support.
