New Research Into Payroll Errors

Payroll management is a notoriously difficult process and so errors often occur. Such errors can cause all sorts of problems for businesses, from impacting negatively on staff morale to incurring hefty fines from HMRC. The results of a new survey have shed light onto the shocking frequency of payroll errors. 

The study was commissioned by the Global Payroll Association and surveyed 4,248 employees working in various businesses and organisations across the United Kingdom. One of the key findings of the research was that a full 25% of the survey respondents had been paid incorrectly by their employer one at least one occasion.

Among those who stated that they had received incorrect wages, close to half had experienced such an error more than once. 46% of mistakes were attributed to human error during the calculation process. In 29% of cases of incorrect payment, said payment did not include the right overtime or bonus pay. A further 11% of errors were related to benefit and payroll deductions being calculated incorrectly.   

Just 13% of payroll errors were corrected on the day they were reported, with a significant majority (56%) taking more than a week to be rectified. Well over a quarter of employees (28%) said that the mistake had resulted in them having difficulties paying for rent and other crucial expenses such as energy and food bills. 

The vast majority of errors (78%) saw affected employees being underpaid, with 19% being paid too much. In the remaining 3% of cases, employees received none of the wages due to them. 

Bachmann Group can offer a comprehensive, reliable and transparent payroll management service to businesses of all sizes and functions. Combining our extensive experience with Multiwage, a BACS approved payroll bureau, we utilise award winning, cutting edge software to deliver the most modern experience, which we tailor to exactly meet requirements. 

Even the smallest payroll error can have huge repercussions, making it one of the most challenging aspects of running a business. Choosing Bachmann Group to manage everything on your behalf can save you time and money, not to mention the reputation of your organisation and the morale of its crucial employees. 

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