Payroll is a vital part of any business, yet almost all companies get it wrong.
91% of UK companies admit to making payroll errors on a monthly basis, according to a recent survey by HR Magazine. Worst still, the scale of this is up to £150,000 in company losses. Clearly, when it comes to people’s hard-earned income, payroll errors are a costly mistake.
Employees have regular outgoings that, in the vast majority of cases, can’t simply be deferred or shifted due to late payments. A single behind-schedule transfer can have disastrous effects on your workforce - which can impact their financial security and psychological well-being.
Overdue payments drive feelings of unrest and insecurity - which makes it no surprise that a recent survey found that 49% of employees questioned would look for a new job after just two payroll errors impacting their salary.
Under a third of Brits feel financially stable, making accurate and timely payroll a paramount priority for all UK businesses. That’s why we’re highlighting the importance of payroll for National Payroll Week 2024.
We understand that, while a critical component of any business that drives the wider economy, payroll doesn’t have the most exciting of reputations - but payment for goods and services has existed for centuries.
7000 BC was the earliest recorded payroll. In the 5th century, the Greeks kept records by chiselling the information into stone. Similarly, the Ancient Egyptians were paid in beer for work done. This information was found on a 5,000-year-old tablet. Symbols were used with line scratches to indicate the amount of beer earned per worker!
While the reality of ensuring compliance with complex regulations is a lot more sobering, understanding how to streamline your processes and maximise efficiencies while minimising errors is vital to effective payroll management.
Payroll drives employee morale, engagement and productivity. It ensures business compliance, upholds your company reputation and maintains the financial integrity of your organisation - but what does your payroll department actually do?
Well, besides navigating a complex web of over 170 pieces of changing legislation, the payroll department is responsible for ensuring accurate, correct and on-time payments to your employees and contractors. This consists of:
If you’re struggling to reconcile your payroll, why not outsource this crucial job to Duncan & Toplis? Our trained, expert advisers can work with you to identify the best service for your firm - get in touch today.
