Payroll payments Bacs remains the most common payment method in payroll, with 86% of respondents confirming this is their preferred method. Faster payments continue to impact the market, however are yet to make any significant impact on the dominance of Bacs, with only 14% delivering payment in this way. 17% confirmed their payroll team didn’t make payments to employees, instead clients were responsible for the final monies into employee bank accounts. While only a few (3%) confirmed they used an alternative payment method, the international presence of SWIFT and SEPA payments made up the majority of these numbers, demonstrating the global reach of payroll teams.
Client makes payment to employees 17%
Bacs 86%
Cheque 2%
CHAPS 2%
Other 3%
Faster payments 14%
A new question in this year’s survey acknowledged the need for ad-hoc payments between pay days. This is perceived to be common practice in payroll teams, however 42% confirmed they did not facilitate ad-hoc payments at all. This result could be influenced by the number of payroll service providers / bureau teams (17%) who confirmed the clients make payments to employees directly, therefore would be unlikely to facilitate any ad-hoc payments. Those who do make payments between pay days, predominately use a manual process (44%), with the second most common process being a supplementary run (9%). Surprisingly, it seems that while pay on demand, or earned access wage, has hit the payroll headlines for a number of years, only 2% confirmed they used this method to make ad-hoc payments. Introducing these platforms does require upfront costs from the employer such as implementation and license fees. It’s possible the roll-out of these platforms has been limited by the pandemic. The CIPP will continue to watch the numbers in this area moving forward.
Provision of ad-hoc payment to employees between pay days
Yes - via a manual process outside of payroll
Yes - via a supplementary run
Yes - via a pay on demand / earned wage access platform
Yes - other
No
The payment date on the full payment submission (FPS) should always be the contractual pay date. If the pay day is brought forward because it falls on a weekend, bank holiday, or pay is made early at Christmas, the FPS should continue to show the normal, contractual pay date. The main reason for this is the impact the date has on employees who claim universal credit. The results of this survey showed that only three in five submissions are complaint in this area. One in five confirm the date the employee receives the money in their account is the date used, which could result in issues for some
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