Integration complexity and legacy systems slow payroll modernisation, CloudPay warns

CloudPay has warned that integration complexity and legacy systems are continuing to hold back payroll modernisation as UK businesses approach the financial year end.

New data from the payroll and payments provider found that 61% of employers say integration complexity is slowing progress, while a further 29% identified legacy systems as the biggest obstacle to transforming payroll operations.

The findings highlight ongoing structural challenges across UK firms, where fragmented systems and outdated infrastructure are limiting efficiency, accuracy and decision-making.

CloudPay said these pressures are being felt most acutely during year-end, when payroll teams face increased workloads and scrutiny.

John Pearce, chief customer officer at CloudPay, said: “Financial year-end always brings extra pressure on payroll teams, but this year’s challenges highlight long-standing structural issues that businesses can no longer ignore.

“Across the UK, the payroll function is increasingly constrained by outdated systems, fragmented processes, and a lack of seamless integration with wider business technology.

“When 61% of payroll professionals tell us that integration complexity is blocking their ability to modernise, and nearly a third say legacy systems are still holding them back, it’s clear the industry faces more than an operational hurdle; it’s facing a systemic barrier to progress.

“At a time when accuracy, compliance, and employee experience are under heightened scrutiny, the ability to rely on a resilient, connected payroll infrastructure is absolutely fundamental.