Payroll record keeping
VIEW YEAR-ON- YEAR DATA
38% Records are stored fully in both digital and paper formats
HOW DO YOU STORE PAYROLL RECORDS?
In the 2022 survey, the question regarding retention of payroll records was added. The 2023 survey has maintained the same question, for year-on-year comparisons to be drawn upon. Digital record keeping is still the most popular method, since it removes the need for storage facilities, required for paper records. Digital records also provide additional options to secure the data more easily than physical records, albeit this isn’t always the case if records aren’t maintained on systems appropriately.
5% Records are stored fully in both digital and paper formats
56% All records are stored digitally
1% All records are stored in paper format
HOW LONG DO YOU RETAIN PAYROLL RECORDS?
The length of retention is also an important consideration in payroll, ensuring that evidence is available should an audit require backdated information. This requirement must also be balanced against the need to store the data, to ensure compliance with the General Data Protection Regulations. 53.74% said they stored records for six years plus the current tax year, making it the most popular response. 33.8% confirmed they stored payroll records for longer. Only a small percentage of respondents stored records for less than this. It is important to note that it is a legal requirement to keep payroll records for no less than three years plus the current tax year, as specified within The Income Tax (Pay As You Earn) Regulations 2003, Regulation 97(8): “For the purposes of this regulation, an employer must keep, for not less than 3 years after the end of the tax year to which they relate, all PAYE records which are not required to be sent to the Inland Revenue by other provisions of these Regulations.”
0.00%
Current tax year only
0.28%
Current tax year + one year
0.28%
Current tax year + two years
6.09%
Current tax year + three years
1.66%
Current tax year + four years
4.16%
Current tax year + five years
53.74%
Current tax year + six years
33.80%
More than six years
VIEW YEAR-ON- YEAR DATA
15
Percentages have been rounded to the nearest whole number for clarity and in some instances may not total 100%
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