The Case for the 4-Eye Review

How a simple double-check can dramatically improve payroll accuracy and team credibility

In the field of payroll, precision is non-negotiable. A single overlooked error can erode employee trust, trigger compliance issues, or result in costly reruns. Yet there is a straightforward, often underutilised safeguard that can prevent many of these problems before they occur: the 4-eye review.

What is a 4-Eye Review?

The 4-eye review is a control mechanism that requires two individuals to check or approve a task before it is finalised. The term refers to two sets of eyes: one person prepares the work, and another independently reviews it before it proceeds further.

This practice is a cornerstone of sound governance and internal controls. Within payroll operations, it acts as a safety net across key stages, especially during the input and output phases of the payroll cycle.

The Value of Reviewing Input

The input phase is where errors most commonly originate, often unnoticed. Typos, missing data, misaligned effective dates, or conflicting stakeholder instructions can all contribute to inaccuracies if not identified early.

A thorough review of input data before submission to the payroll vendor reduces the risk of:

• Typographical or copy-paste errors

• Omitted data (e.g. bonuses, terminations, new hires)

• Incorrect classifications (e.g. gross-ups vs. standard payments)

• Misinterpretation of ambiguous or informal instructions 

Detecting such issues early not only prevents downstream errors but also saves valuable time and effort by reducing the likelihood of reruns.

An Added Advantage: Leverage

When the input review is well-structured and documented, payroll teams gain a stronger position in discussions with vendors. If the data has been internally validated before submission, it becomes much easier to determine the root cause of any discrepancies. This clarity enables the client to hold vendors accountable based on facts rather than assumptions.

Over time, this builds operational credibility and strengthens relationships with both internal and external stakeholders.

The Importance of Reviewing Output

Once the vendor processes the payroll, the output must be checked with equal diligence. This phase represents the final opportunity to intercept any discrepancies before employees are affected.

A structured review of the payroll output increases the likelihood of detecting:

• Calculation errors

• Inaccurate or missing terminations

• Incorrect onboarding details for new hires

• Unapplied or misapplied retroactive adjustments

• Outlier values or unexplained variances in net pay

While the most immediate benefit is the prevention of errors reaching employees, a consistent output review also contributes significantly to performance monitoring and internal assurance.

Two Frequently Overlooked Benefits

• Insight into vendor performance: A systematic output review creates a data trail that can reveal patterns in vendor errors. This insight allows for more focused corrective actions, targeted feedback, and continuous improvement.

• Demonstration of internal diligence: When internal payroll teams detect and resolve issues before payday, it highlights the team's contribution to operational quality. For example, if 10 vendor errors are identified and 9 are corrected before disbursement, that equates to a 90% internal detection rate, a compelling statistic to present during audits or stakeholder reviews.

A Note on Culture: The 4-Eye Review Is Not Micromanagement

In some environments, the implementation of a review process is misunderstood as a sign of distrust or unnecessary bureaucracy. In reality, the 4-eye review is a marker of operational maturity and a proactive quality safeguard.

What it is not:

• A duplication of work

• A judgment on the preparer’s competence

• An administrative burden with no added value

What it is:

• A shared responsibility for accuracy

• A mechanism for ensuring consistent output quality

• A practical way to foster trust with employees, auditors, and leadership 

Embedding the 4-Eye Review into the Process

To be effective, the 4-eye review must be intentional and consistent. The following elements help integrate it into daily operations without adding unnecessary friction:

• Clear role assignment: Define who prepares and who reviews for each process step. Avoid leaving this to chance or last-minute decisions.

• Standardised checklists: Use structured checklists to guide both input and output reviews. These ensure nothing is overlooked and promote consistency across the team.

• Basic documentation: Maintain simple records of who reviewed each item and when. This provides traceability and supports compliance audits.

• Thresholds and triggers: Not all transactions require the same level of scrutiny. Determine what level of financial value, complexity, or risk triggers a mandatory review.

• Automation and tools: Where possible, support manual reviews with automated validations, exception reports, or workflow prompts.

• Supportive culture: Promote a culture in which reviewing and being reviewed is seen as part of professional practice, not as a personal critique.

Final Thoughts: Quality is Quiet

The 4-eye review is not glamorous, nor is it designed to deliver dramatic savings in a single day. But over time, it accumulates into a meaningful reduction in error rates, reruns, and escalations.

In payroll, where stakes are high and tolerance for error is low, the 4-eye review offers three enduring benefits:

• Accuracy – Reduced likelihood of input or output mistakes

• Accountability – Clear ownership and defensible processes

• Reputation – Enhanced stakeholder trust in payroll operations

Ultimately, the 4-eye review is not just a best practice. It is a quiet cornerstone of payroll excellence.