Whilst in an ideal world this would be zero - when comparing the above figures against the volume of data sent and received - this is low. Payroll departments hold a large volume of sensitive and confidential data; therefore breaches should be investigated fully, with processes in place to avoid future breaches from occurring. Filing deadlines Within the tax year 2020/2021 respondents stated that over 93% of the required statutory payments and reports were sent to HMRC on time, with only 7% not meeting their obligations. Of that 7%, just 11% utilised the option to defer PAYE payments due to Covid-19.
Of the 7% that did not meet obligation deadlines, the total instances equated to 31,760. The most common occurrences were failure to provide employees/pensioners a copy of their P60 by 31 May 2020 (84%).
Whilst this figure may look high, considering the effects of the pandemic it is not surprising as a large proportion of payroll departments were experiencing increased workloads due to the introduction of the Coronavirus Job Retention Scheme (CJRS), along with the additional pressure of a large proportion now working from home and the possibility of not having the equipment to issue P60s. A popular method of issuing a P60 is in a paper format, but if working from home, teams may not have had the facility to print, or even post them to employees. Further strain could have been added due to higher levels of absence relating to Covid-19, particularly in certain sectors such as hospitality and retail. Additionally, it has been widely reported that businesses have struggled to recruit people into roles, thus affecting resource and staffing levels in payroll departments.
Investment in software to deliver P60s electronically could dramatically reduce the late submission making the payroll team more compliant and fulfilling its statutory obligations.
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