The Controller’s Guide to Managing Payroll and Employee Benefits

Let’s be honest. Payroll and benefits aren't exactly the sexiest parts of finance, but for controllers, they’re the beating heart of operational stability.

I’ve sat in the CFO chair long enough to know that when payroll runs smoothly, no one says a word. But one delay, one benefits hiccup, and suddenly, your inbox looks like a war zone.

Managing this function well is less about spreadsheets and more about strategy, empathy, and yes, a touch of automation.

Start with structure. Every great payroll system runs on consistency. That means clear cutoff dates, approval workflows, and backup plans when things go sideways. You wouldn’t believe how many mid-market companies I’ve seen still juggling this with spreadsheets and last-minute emails. According to a 2023 survey by the American Payroll Association, 27% of organizations reported payroll errors in the past year—mostly due to manual processes. A reliable payroll software integrated with your accounting system isn’t a luxury anymore, it’s a baseline requirement.

Then there's the benefits piece, which often gets overlooked until open enrollment hits like a tidal wave. A controller's role here isn't just budgeting for health plans and 401(k) matches. It’s about making sure the benefits offering aligns with what employees actually want and what the company can realistically afford. According to SHRM, 92% of employees say benefits are important to their overall job satisfaction. That’s not just a number, that’s your retention strategy in action. If your benefits strategy hasn’t evolved since your last ERP upgrade, it’s time to revisit it.

Compliance is another landmine. Between IRS deadlines, state tax quirks, ACA reporting, and evolving employment laws, one misstep can be costly. I've seen penalties rack up simply because someone missed a filing by two days or didn’t classify an employee correctly. Make it your mission to build a compliance calendar and audit your payroll at least quarterly. Better yet, lean on your advisors or consultants to stress-test your systems before the IRS or DOL does it for you.

At the end of the day, payroll and benefits management is about trust. Employees trust that their compensation will be accurate, on time, and fair. The board trusts you to manage costs without exposing the company to risk. And you, as a controller, need to trust your systems, your team, and your processes. Nail that, and you’ll not only keep the trains running—you’ll build a platform for growth. Because when payroll and benefits are handled right, nobody notices. And in finance, that’s usually the sign you’re doing things exactly right.