It's Wednesday 10am. Payroll runs Friday.
The only person who knows how to process it in Gusto/ADP/Rippling is at a dentist appointment. Then they get sick. Then they quit.
Now you're calling support at 4pm Friday, explaining you don't know your own EIN, trying to get a one-time code to run payroll for 22 people who have rent due Monday.
This is the #4 finding in our audits. Every agency has it. Zero agencies plan for it.
The Bus Factor Test
Right now, without looking: Who runs payroll? What's the login? What's the cutoff? Where are the tax IDs?
If you can't answer all four in 30 seconds, you have a single point of failure.
The Redundancy Protocol (No New Hires)
1. Document the Runbook (2 hours once)
Create a Notion page: Payroll Runbook. Sections:
| Section | What to Include | |---------|-----------------| | System Access | Platform (Gusto/ADP/Rippling), login URL, 2FA method, backup codes location | | Schedule | Pay periods, cutoff dates, submission deadlines, pay dates for 12 months | | Step-by-Step | Screenshots: login → run payroll → review → submit → confirm | | Inputs Required | Hours/timesheets source, bonus/commission approvals, contractor payments, expense reimbursements | | Approvals | Who approves before submit (founder? COO?), how they approve (email, Slack, in-system) | | Tax/Compliance | EIN, state tax IDs, SUTA rates, filing calendar (quarterly, annual) | | Edge Cases | Terminations mid-cycle, garnishments, 401k matching, multi-state employees | | Support Contacts | Platform support phone/email, account manager, CPA firm |
2. Designate a Backup (This Week)
Criteria:
- Not the primary payroll person
- Trusted with sensitive data (SSNs, bank accounts, compensation)
- Available during payroll weeks
- Willing to do a dry run
Candidates: COO, Ops Lead, Founder (if not primary), fractional CFO, senior PM with finance exposure.
3. Quarterly Dry Run (30 minutes)
Next payroll cycle:
- Primary walks backup through the runbook live
- Backup runs next payroll with primary shadowing
- Swap roles next cycle
Quarterly thereafter: Backup runs one full cycle solo. Primary verifies.
4. Access Redundancy
- Password manager: 1Password/Bitwarden shared vault. Both have access.
- 2FA: Authenticator app on both phones (or hardware keys for both).
- Backup codes: Printed, sealed, in fire safe. Both know location.
- Platform permissions: Both have "Admin" or "Full Access" role in payroll system.
The Vacation/Illness Protocol
Planned absence (vacation):
- 2 weeks notice → backup runs that cycle
- Primary available by phone for questions (not doing the work)
Unplanned absence (illness/emergency):
- Backup has full access today
- Runbook is current (quarterly review)
- Escalation: CPA firm has standing authorization to run payroll if both unavailable
The Departure Protocol
When the primary gives notice:
Week 1: Backup runs payroll with primary shadowing (reverse of dry run) Week 2: Backup runs solo, primary available by phone Week 3: Backup runs solo, no contact Week 4: Primary gone. Backup is now primary. New backup designated.
Quick Win This Week
- Ask your payroll person: "If you got hit by a bus tomorrow, could [X] run payroll Friday?"
- If no: Schedule 2 hours this week to build the runbook together
- Add quarterly dry run to both calendars (recurring, forever)
The Real Cost
If it breaks: Late payroll = state penalties, employee trust destroyed, potential lawsuits, "best place to work" reputation gone.
If it works: 30 minutes/quarter. One Notion page. Two people who know the login.
Your call.
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