--- title: The hidden costs of shadow payroll description: Shadow payroll costs more than you think, in hours, adviser fees and corrections. Here's where the money leaks, and how to fix the calculation, not the payroll. image: https://www.certino.com/hubfs/hidden-costs-of-shadow-payroll-cover-1.png --- [Skip to content](https://www.certino.com/blog/the-hidden-costs-of-shadow-payroll#main-content) [![Certino Ltd. Logo](https://www.certino.com/hubfs/march-2021/globals/certino.svg)](https://www.certino.com/) ![](https://cdn2.hubspot.net/hubfs/234700/_nov_2019/globals/nav.svg) - [Home](https://www.certino.com) - [Platform](https://www.certino.com/platform) - [Managed service](https://www.certino.com/managed-service) - [About us](https://www.certino.com/about-us) - [Blog](https://www.certino.com/blog) - [Book a call](https://www.certino.com/book-a-consultation) [Blog](https://www.certino.com/blog)  /  [Global Mobility](https://www.certino.com/blog/tag/global-mobility) # The hidden costs of shadow payroll ![](https://www.certino.com/hubfs/michael-de-jongh.png) [Michael De Jongh](https://www.certino.com/blog/author/michael-de-jongh) • 30 September 2026 • 3 min read ![The hidden costs of shadow payroll](https://www.certino.com/hubfs/hidden-costs-of-shadow-payroll-cover-1.png) ## The Hidden Costs of Shadow Payroll Almost every conversation I have with a mobility leader comes back to the same problem: shadow payroll is costing them far more than they think, and they have no way of seeing it. It never arrives as a single invoice. Instead it leaks out through hours, fees and corrections spread across different teams, and nobody owns the total. ### You are paying people to chase data Every cycle, someone has to track down salary, bonus, allowances, equity and travel days from HR, payroll and a dozen different inboxes, and then someone else has to check their work. According to [Remote's 2024 State of Payroll Report](https://remote.com/resources/research/impact-of-payroll-mistakes), nearly half of HR teams (49%) already spend five or more hours a month fixing pay issues, and shadow payroll piles more on top. That is skilled time spent collecting numbers rather than using them. ### Your spreadsheet is a liability The spreadsheet works well enough until the person who built it leaves, a rate changes or you add a new country. Formulas break without anyone noticing, versions multiply, and when an auditor asks how a figure was reached, it can take a week to piece together the answer. ### Errors compound in the dark A mistake made in month two often isn't found until month eleven, by which point it has been repeated in every cycle since. You then find yourself fixing payroll, amending filings and apologising to your assignee all at once. In the UK, a careless error can draw a [penalty from HMRC](https://www.gov.uk/tax-appeals/penalty) of up to 30% of the extra tax due, and that is before you count the time it takes to put right. ### Advisers are too expensive for routine work Your tax advisers are brilliant at judgement calls, but paying them to run the same calculation every month is a poor use of their expertise and your budget. Their fees climb with headcount, so as your programme grows, your calculation spend grows right along with it. ### Your people notice When a wrong hypothetical (hypo) tax deduction shows up on someone's payslip, it feels personal. [Remote](https://remote.com/resources/research/impact-of-payroll-mistakes) found that 42% of employees who had experienced a pay error said it damaged their relationship with their employer. For your best people, that kind of experience can be enough to make them wonder whether their next international move is worth it. ### Fix the calculation, not the payroll You don't need a new payroll system. What you need is for the calculation in the middle to be done right, and that is exactly what Certino does. We are the calculation layer for hypo tax, gross-ups and shadow payroll: we bring together the data you already hold, calculate the figures and hand payroll-ready numbers to your payroll provider. At year end, we reconcile actuals against what was reported, so mistakes don't sit unnoticed for months. We don't run payroll and we don't replace your tax advisers. Instead, we make both of them work harder for you, and you can work with us in whichever way suits your team: - Run it yourself on the [Certino platform](https://www.certino.com/platform). - Connect through our API, behind the systems you already use. - Hand it over to our [managed shadow payroll service](https://www.certino.com/managed-shadow-payroll). ### Stop the leak If you add up the hours, the fees and the corrections, the total will probably surprise you. [Book a consultation](https://www.certino.com/book-a-consultation) and we will show you exactly where it is hiding. If you'd prefer a direct conversation, you can always [message me on LinkedIn](https://www.linkedin.com/in/michaeldejongh/) or email me at [mdj@certino.com](mailto:mdj@certino.com). Share [mailto:?subject=The+hidden+costs+of+shadow+payroll&body=https%3A%2F%2Fwww.certino.com%2Fblog%2Fthe-hidden-costs-of-shadow-payroll](mailto:?subject=The+hidden+costs+of+shadow+payroll&body=https%3A%2F%2Fwww.certino.com%2Fblog%2Fthe-hidden-costs-of-shadow-payroll) ![](https://www.certino.com/hubfs/michael-de-jongh.png) ### Michael De Jongh Michael De Jongh is the founder of Growthblade® and Chief Commercial Officer at Certino, a role he holds through Growthblade, where he leads commercial strategy and partnerships. [← All articles](https://www.certino.com/blog) ## More from the Certino blog [![alt](https://www.certino.com/hubfs/hidden-costs-of-shadow-payroll-cover-1.png)](https://www.certino.com/blog/the-hidden-costs-of-shadow-payroll) 30 September 2026   |   [Global Mobility](https://www.certino.com/blog/tag/global-mobility), [Shadow Payroll](https://www.certino.com/blog/tag/shadow-payroll), ##### [The hidden costs of shadow payroll](https://www.certino.com/blog/the-hidden-costs-of-shadow-payroll) [![alt](https://www.certino.com/hubfs/gross-up-featured-image_1.png)](https://www.certino.com/blog/same-inputs-same-answer-why-cross-border-gross-ups-drift-and-how-to-stop-it) 29 September 2026   |   [Global Mobility](https://www.certino.com/blog/tag/global-mobility), [Shadow Payroll](https://www.certino.com/blog/tag/shadow-payroll), [International Tax](https://www.certino.com/blog/tag/international-tax), ##### [Same inputs, same answer: why cross-border gross-ups drift, and how to stop it](https://www.certino.com/blog/same-inputs-same-answer-why-cross-border-gross-ups-drift-and-how-to-stop-it) [![alt](https://www.certino.com/hubfs/ChatGPT%20Image%20Jun%2016%2c%202026%2c%2008_37_46%20AM-1.png)](https://www.certino.com/blog/certino-and-topia-partner-to-deliver-connected-global-compensation-workflows) 16 June 2026   |   ##### [Certino and Topia partner to deliver connected global workflow](https://www.certino.com/blog/certino-and-topia-partner-to-deliver-connected-global-compensation-workflows) Book a call ## Talk to a shadow payroll specialist A short call to look at how you run shadow payroll today and where Certino fits. No obligation. [Book a call](https://www.certino.com/book-a-consultation) Your payroll data, properly protected Independently audited security, built for sensitive pay data. ![ISO 27001:2022](https://www.certino.com/hubfs/march-2021/globals/iso-27001.png) ISO 27001:2022 ![AICPA SOC 2](https://www.certino.com/hubfs/march-2021/globals/aicpa.png) SOC 2 audited ![GDPR](https://www.certino.com/hubfs/march-2021/globals/eu-gdpr.png) GDPR compliant ![certino-white](https://www.certino.com/hubfs/march-2021/globals/certino-white.svg) ###### Links - [Shadow payroll guide](https://www.certino.com/shadow-payroll) - [Platform](https://www.certino.com/platform) - [Managed shadow payroll](https://www.certino.com/managed-service) - [Research & insights](https://www.certino.com/blog) - [Book a demo](https://www.certino.com/book-a-consultation) ###### Contact - [+44 (0) 207 118 1405](tel:+44(0)2071181415) - [enquiries@certino.com](mailto:enquiries@certino.com) - [![linkedin](https://www.certino.com/hubfs/linkedin.svg)](https://www.linkedin.com/company/certino/) © 2026 Certino Ltd. All rights reserved. Company no. 10810451. Registered at 25 Moorgate, London EC2R 6AY - [Cookie policy](https://www.certino.com/cookie-policy) - [Terms & Conditions](https://www.certino.com/terms-conditions) - [Privacy policy](https://www.certino.com/privacy-policy)