Global IT Outage From CrowdStrike May Impact Payroll

On July 19, a problem with a software update impacted many industries and companies around the world. CrowdStrike, a cybersecurity company, issued a software update for Microsoft Windows that caused computers to shut down and then endlessly reboot. There are media reports that financial institutions, along with airlines, health care systems, and broadcasters, were affected.

CrowdStrike has fixed the problem but there may be lingering issues in various industries. George Kurtz, CrowdStrike’s chief executive, stated on X that the company was actively working with impacted customers and the issue had been “identified, isolated and a fix has been deployed.”

Possible Impact on Payroll/HRIS

It is possible that payroll systems and human resources information systems (HRIS) could not be operational because of the outages. Direct deposit payments at banks could also be delayed. Because the full extent of the technical difficulties is unclear, PayrollOrg recommends that payroll professionals communicate with their financial institution so they can be reassured that their payroll will process successfully, or if there are problems, that they are proactive in finding a workaround and communicate with management and employees.

If Payroll Is Affected

A disruption in the operation of financial institutions may affect payroll professionals in a similar manner to a bank failure. Following major bank failures in 2023, PayrollOrg developed a list of best practices to help businesses facing issues meeting their payroll obligations. These best practices are included in the PAYO news release Bank Failures Impact Payroll Professionals.

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Curtis Tatum, Esq., is In-House Counsel and Senior Director of Federal Payroll Compliance for PayrollOrg.