Executive summary
The Payslip Statistics Survey Report is one of the CIPP’s flagship surveys which explores trends impacting payroll processes, payslips and compliance. The research has been conducted on an annual basis since 2008 and continues to confirm and discover practices in payroll. The policy and research team is responsible for collating this research and is thankful to everyone who took the time to respond to the survey to generate the results in this report. These contributions are vital to ensure the results are representative of the payroll industry as a whole. Each year, topical questions are included in the survey. This year, the health and social care levy payslip message, and the ongoing impact of furlough were included. The associated results are noteworthy. Furthermore, this year, the question bank has been developed to include new research to expand the depth of this report. The questions have been refined and modernised to ensure the results are relevant and meaningful for the payroll professional of today. KEY FINDINGS ● The number of payroll teams processing more than 10,000 employees has reduced, but the number processing 50 or less has increased ● Monthly pay remains the most common pay frequency with 97% operating a monthly payroll ● Payroll teams have changed employee pay frequency six times more this year when compared to last year’s results ● Bacs continues to dominate payroll payments with 86% using it as a pay method ● The most popular method to make ad-hoc and interim payment to employees was via a manual payment process ● 58% of respondents were fully compliant with the full payment submission (FPS) requirements for pay day reporting
● 90% confirm that all pay and deduction elements are broken down on the payslip ● The tools used by payroll teams to help employees understand their pay include: ❍ payslip messages (30%)
❍ self-service portal message (22%) ❍ frequently asked questions (18%). ● The top three payroll queries relate to: ❍ 1.) querying the tax code applied ❍ 2.) being unable to access the online payslip ❍ 3.) an underpayment due to late data sent to payroll
● Self-service platforms are the most common method of payslip distribution (77%) ● The majority of payroll teams have adopted measures to ensure payslip security
● 50% store all payslip records digitally, with 53% retaining those records for six years plus the current tax year ● The results highlighted evidence of non-compliance with holiday pay calculations, underlining the administrative challenge faced by payroll teams in this area ● The majority (61%) of respondents will be using Her Majesty’s Revenue and Customs’ (HMRC’s) recommended payslip message to communicate the health and social care levy ● As a direct consequence of the coronavirus job retention scheme (CJRS), 40% confirm that manual calculations have been required to determine maternity or redundancy payments.
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