[Global] IT outage hits payroll systems risking late wages for millions

The body representing global payroll professionals has warned that millions of workers around the world risk going without their wages as a result of today’s (July 19) global IT systems outage, The Telegraph reports.

The widespread IT failure could have serious implications for businesses, depending on the duration of problems - particularly those that pay staff weekly - according to the Global Payroll Association (GPA).

Melanie Pizzey - our CEO - told The Telegraph, “We’ve been contacted by numerous clients already today who have been unable to access their payroll software due to the Microsoft outage and others who have been urged to log out with immediate effect.

“Depending on the length of this outage, it could have very serious implications for businesses across the nation, particularly those who process payroll on a weekly basis. Furthermore, we could see a backlog with regard to processing payrolls for the coming month end which may delay employees from receiving their monthly wage.”

Mel added that payroll professionals would be required to work overtime to overcome the tech issues. 

Approximately 4.3 million people in Britain - around 15 per cent of the working population - are paid weekly, according to jobs site Indeed. 

Payroll systems ordinarily need to be notified of any issues two days before a designated payday for them to be resolved in time to meet the deadline, experts said. Anyone expecting to receive wages today should get paid without issues but those whose pay day is next week could potentially encounter delays.

On July 19, companies and systems worldwide were hit by an IT outage reportedly believed to have been caused by a flawed global software update by security company CrowdStrike. 

George Kurts - chief executive of CrowdStrike - reportedly said that the bug which caused the IT meltdown has been “resolved”, however, he acknowledged that there was an impact on businesses. 

The outage led to some pupils being sent home from school on the final day of term, broadcasters being unable to report the news and supermarkets, pubs and other retailers left unable to accept card payments.

GP surgeries found themselves unable to access patient records or book appointments and the NHS advised people to only contact their doctors if their illness was urgent.

Travellers were confronted by chaos as major airports including Gatwick and Edinburgh reported significant delays. 

Experts claim it will prove difficult to put a figure on the impact of the outage. Speaking to The Telegraph, Professor Alan Woodward at Surrey University said the widespread disruption would have profound impacts and could drag on for days.

Professor Woodward said, “When the ransomware known as NotPetya hit for example Maersk, it cost that one company billions on its balance sheet.”

Source: The Telegraph

(Quotes via original reporting)

The body representing global payroll professionals has warned that millions of workers around the world risk going without their wages as a result of today’s (July 19) global IT systems outage, The Telegraph reports.

The widespread IT failure could have serious implications for businesses, depending on the duration of problems - particularly those that pay staff weekly - according to the Global Payroll Association (GPA).

Melanie Pizzey - our CEO - told The Telegraph, “We’ve been contacted by numerous clients already today who have been unable to access their payroll software due to the Microsoft outage and others who have been urged to log out with immediate effect.

“Depending on the length of this outage, it could have very serious implications for businesses across the nation, particularly those who process payroll on a weekly basis. Furthermore, we could see a backlog with regard to processing payrolls for the coming month end which may delay employees from receiving their monthly wage.”

Mel added that payroll professionals would be required to work overtime to overcome the tech issues. 

Approximately 4.3 million people in Britain - around 15 per cent of the working population - are paid weekly, according to jobs site Indeed. 

Payroll systems ordinarily need to be notified of any issues two days before a designated payday for them to be resolved in time to meet the deadline, experts said. Anyone expecting to receive wages today should get paid without issues but those whose pay day is next week could potentially encounter delays.

On July 19, companies and systems worldwide were hit by an IT outage reportedly believed to have been caused by a flawed global software update by security company CrowdStrike. 

George Kurts - chief executive of CrowdStrike - reportedly said that the bug which caused the IT meltdown has been “resolved”, however, he acknowledged that there was an impact on businesses. 

The outage led to some pupils being sent home from school on the final day of term, broadcasters being unable to report the news and supermarkets, pubs and other retailers left unable to accept card payments.

GP surgeries found themselves unable to access patient records or book appointments and the NHS advised people to only contact their doctors if their illness was urgent.

Travellers were confronted by chaos as major airports including Gatwick and Edinburgh reported significant delays. 

Experts claim it will prove difficult to put a figure on the impact of the outage. Speaking to The Telegraph, Professor Alan Woodward at Surrey University said the widespread disruption would have profound impacts and could drag on for days.

Professor Woodward said, “When the ransomware known as NotPetya hit for example Maersk, it cost that one company billions on its balance sheet.”

Source: The Telegraph

(Quotes via original reporting)