Many payroll bureaus are stretched thin, juggling multiple clients while ensuring compliance with ever-changing legislation. Jonathan Mifsud, Co-Founder & CTO of Payroll Cloud Software Buddy, has seen firsthand how these challenges impact firms of all sizes.

“Payroll is about keeping up with constant regulatory shifts, client demands, and ensuring every payslip is 100% accurate. One small mistake can have major consequences, from fines to reputational damage,” says Jonathan.

He has spent years working with payroll bureaus and accountants, helping them navigate these challenges.

The challenges payroll bureaus face

Many payroll bureaus are stretched thin, juggling multiple clients while ensuring compliance with ever-changing legislation. Common challenges include:‍

• ‍Regulatory updates – Staying compliant is an ongoing battle, with new pension requirements, employment law changes, and tax updates constantly emerging.‍
• Technology shifts – Payroll software and automation tools can improve efficiency, but choosing and implementing the right solutions without disruption is easier said than done.‍
• Pricing and profitability – Many payroll bureaus struggle to charge what their services are truly worth, particularly when payroll is seen as an add-on rather than a core business function.‍
• Talent and efficiency – With growing workloads and tight deadlines, payroll teams need the right processes and support to work effectively without burnout.
  

These are issues that directly impact the sustainability and profitability of payroll services, making it critical for bureaus to stay informed and adaptable.

“Payroll bureaus provide an essential service, yet many are undercharging. It’s time to shift the perception of payroll from a low-margin necessity to a valuable, revenue-generating service,” says Jonathan.

Automation is changing payroll, but it’s not just about replacing manual work. The real challenge is integrating tech in a way that actually makes teams more efficient, not overwhelmed.

The future of payroll: What’s next?

The payroll industry is at a turning point. AI, automation, and compliance tools are becoming more advanced, giving payroll professionals new ways to streamline operations and reduce risk. However, technology alone isn’t the answer—firms need to know how to integrate these tools effectively and develop strategies that future-proof their services.

“We’re seeing payroll teams stretched to their limits. Efficiency isn’t just about tech—it’s about having the right structure, training, and processes in place to scale without breaking,” Jonathan adds.

This is where learning from industry leaders, sharing insights, and staying ahead of trends can make all the difference.

Events like the Payroll Growth Summit (4-6th March) bring together payroll experts, software providers, and bureau owners to discuss the most pressing challenges and opportunities in the industry.

Jonathan will be joining a panel of payroll specialists to explore the strategies payroll bureaus need to thrive. From tackling compliance updates to leveraging automation and improving pricing models, the discussion will provide actionable insights for firms looking to grow and adapt.

For those keen to dive deeper, the summit offers a chance to hear from industry figures like Samantha O’Sullivan (CIPP) on compliance, Barry Matthews (Association of Bureau Managers) on scaling a bureau, and Stuart Hurst (Cloud 10 Accounting) on modernising payroll operations.

With payroll evolving rapidly, staying informed is essential.