Most payroll problems don’t start in payroll.
They start when HR records, employment contracts, and payroll data don’t match.
With employment rules changing and more scrutiny on employers, 2026 is not about panic, it’s about checking the basics still work.
If you do just one thing this year, make it this:
Carry out a simple HR and payroll data check.
It takes very little time and often highlights issues before they become expensive problems.
What Is an HR and Payroll Data Check?
An HR and payroll data check is exactly what it sounds like.
You take the information held in:
- Employment contracts
- HR records
- Payroll software
And make sure they all say the same thing.
That’s it. No legal jargon. No complex audits. Just check it all matches up.
Why This Matters in 2026
Many employers haven’t reviewed their HR and payroll data for years, that's a fact we see all the time.
But things change:
- Pay increases
- Hours change
- Job roles evolve
- Hybrid working becomes normal
- Pension rules are updated
- Employment rights are strengthened, think "The Employment Rights Bill"
If records aren’t updated consistently, errors creep in slowly.
By the time they’re noticed, they often involve:
- Back pay
- Pension corrections
- Employee complaints
- HMRC queries
A simple HR and payroll data check helps prevent this.
The One Check We Recommend
Choose one employee, any employee will be fine.
Now compare the following:
1. What the contract says
- Pay
- Hours
- Role
- Holiday entitlement
2. What the HR record shows
- Start date
- Employment status
- Working pattern
- Contract type
3. What payroll is actually processing
- Salary or hourly rate
- Pension contributions
- Holiday pay
- Statutory payments
If all three match, great, you're on top of things. If they don’t, you've identified an issue and can easily fix it.
Common Issues This Check Uncovers
From experience, this single check often reveals:
- Pay rises agreed but not updated everywhere
- Incorrect contracted hours in payroll
- Holiday entitlement calculated on old terms
- Pension contributions based on the wrong pay
- Employees marked incorrectly as full-time or part-time
None of these usually happen on purpose.
They happen because systems fall out of sync.
A Quick Q&A Employers Often Ask
How long does this check take?
For one employee, usually 10–15 minutes.
Do we need to do this for everyone?
Start with one.
If you find issues, it’s worth checking other staff.
Is this a legal requirement?
Keeping accurate records is required.
Doing a formal “check” isn’t, but it’s good practice.
What if we find something wrong?
Fix it sooner rather than later.
Small annual fixes are easier than having to go back several years or more.
How We Do This at Crystal
When we work with employers, we don’t just “run payroll”.
We check that:
- Contracted pay matches payroll
- HR data supports payroll calculations
- Pension and statutory payments are based on the right information
If something doesn’t line up, we flag it.
That way:
- Employers stay compliant and reduce risks
- Employees are paid correctly
- Problems don’t build up in the background
One Final Takeaway
If you remember one thing from this article, let it be this:
If your contract, HR records, and payroll don’t match, you have a problem, even if payroll looks fine today.
A simple HR and payroll data check can give peace of mind and prevent bigger issues later.
The ICO takes employee information seriously. You can red more here: Employment practices and data protection: keeping employment records | ICO
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