Education Payroll Roundtable: Supporting the Backbone of the Sector

After nearly three years working in payroll recruitment and over five years across the broader public sector, I’ve developed a deep appreciation for the often under-recognised professionals who ensure public services run smoothly. Payroll, in particular, remains an area where talent is essential, yet frequently overlooked in terms of recognition and development opportunities.

In education – spanning nurseries, schools, colleges, universities, and specialist academies – payroll is uniquely complex. From managing Teachers’ Pensions to navigating the nuances of term-time contracts and ever-evolving legislation, hiring experienced payroll professionals is a challenge. Once you’ve secured one, they’re in high demand—and often find it difficult to transition out of the sector because of their specialised knowledge.

What I’ve consistently found is that education payroll professionals are highly skilled, adaptable, and deeply knowledgeable. However, they often work in isolated roles or within small teams, making the challenges of year-end, compliance, and system changes feel overwhelming. That’s where the idea for our Education Payroll Roundtable was born: a free space for professionals to connect, share best practices, and offer each other much-needed support.

A Collaborative Approach

Given how closely payroll and HR functions are intertwined, we partnered with our HR Temp recruitment expert, Emily Connor, and invited the highly experienced Satwinder Phull from the Royal Academy of Music to chair the session. We also welcomed Mat Akrigg from the CIPP, who brought a wealth of policy and technical insight, while also gaining valuable real-world feedback for the institute.

The roundtable focused on three key topics:

1. HMRC Audits
2. Benefits in Kind
3. The Role of AI in Payroll

Attendees came from diverse backgrounds, ranging from those with over 25 years in the sector to consultants with varied education experience. What united them was a shared commitment to improving payroll in education.

HMRC Audits: A Mixed Experience

Given the recent announcement from the Labour Party about plans to recruit 5,000 additional compliance officers, we opened with a discussion on HMRC visits. Surprisingly, only two attendees had ever been audited, despite the wealth of experience in the room.

Some key insights:

• Both audits were triggered during system migrations.
• While HMRC stated they might look back six years, in practice, only three were reviewed.
• Transparency and a clear corrective plan were critical, being able to explain discrepancies was more important than perfection.

The consensus around facing an audit was calm and composed: audits are stressful but manageable. It was noted that keeping accurate records – for everything – is critical. However, a recurring frustration was the inability to secure extra support during audits, often due to resource constraints. This underscores the importance of better planning and the strategic use of contractors during audits, system changes or peak periods.

Software Frustrations & Benefits Confusion

From audits, we naturally moved to the topic of payroll software. Two key themes emerged:

• Payroll teams are often excluded from the selection process.
• Software providers can lack transparency; especially around critical features like MCR (Monthly Contributions Reconciliation) or additional costs for processing benefits.

This lack of involvement contributes to inefficiencies, poor integration, and increased workload. It also set the stage for a candid conversation on Benefits in Kind.

Though not a headline issue in education – most reported offering only healthcare benefits – there were discussions around:

• What constitutes a true benefit?
• Salary sacrifice vs. loans?
• Compliance risks posed by third-party vendors and wellbeing platforms.

Three key questions were proposed before implementing any benefit:

1. Can your software handle the benefit, and what is the cost?
2. Does it truly benefit the employee, or is it financially detrimental?
3. Will it increase the payroll team’s workload?

There was a strong view that education around benefits is needed, not only for employees but especially for senior leaders who select them without understanding compliance implications. One standout example was a Head of Payroll & Reward who, upon taking on the role, immediately cancelled benefits that didn’t deliver value.

A particularly clever idea discussed was launching holiday purchase schemes post-pay rise, when employees feel more financially secure. This also reduces NI contributions and encourages better work-life balance.

AI in Payroll: Cautious Curiosity

The final and most passionately debated topic was AI in payroll. While there was curiosity, the dominant sentiment was caution.

Concerns included:

• Trust in AI-generated outputs, especially if configurations are wrong.
• Loss of human touch in employee queries, something no one wanted to sacrifice.
• Uncertainty around accountability in the event of an AI-driven error during an audit.

There was also an open question: Should AI tools be integrated within payroll systems, or should organisations adopt third-party solutions?

While some professionals were open to exploring AI for routine queries and process automation, many expressed the need for a clear AI policy specific to payroll. At present, most policies sit under general IT governance, which doesn’t account for payroll-specific nuances.

Looking Ahead

This debut Education Payroll Roundtable was a resounding success. Attendees were open, engaged, and generous with their insights. For many, this was the first time they’d had a space dedicated to discussing their challenges in such depth, and with peers who truly understood them.

Key takeaways:

• Education payroll professionals need more support, recognition, and inclusion in decision-making.
• Collaboration between HR and payroll must be strengthened.
• Strategic use of contractors can ease pressure during implementations or audits.
• AI is coming – but we must tread carefully and thoughtfully.

We’re proud to have created a forum for such meaningful discussion, and we’re already looking forward to the next one.

Interested in joining our next Education Payroll Roundtable or learning more about how we support payroll professionals in education? Get in touch on 0207 247 2882 – we’d love to hear from you.

Georgia Frost, Senior Recuitment Consultant | Connect with me

Georgia has over 8-years recruitment experience and she has championed payroll within public sector maret for the past 3.5 years, connecting organisations with their ideal candidates.