Foreword
Problem/ purpose In September 2021 we looked to payroll and HR professionals to gain a better understanding of Faster Payment usage, how payment errors are corrected, and the cost attached to amending payment errors. Key findings To no surprise, there’s growing knowledge of Faster Payments in the industry. While most payroll departments use real-time payments in some areas of their payroll process, typically they don’t use these payments for their bulk payroll payments. That means the majority of the market is missing out on the key benefits of Faster Payments including: greater flexibility, cost reduction and time savings.
Our survey revealed almost a quarter of respondents identified between 1% and 10% of payments had errors.
However, the way in which they’re correcting these errors is still via one of the slowest payment methods, with 41% of respondents using BACs.
A whopping 73% of respondents confirmed employees had been overpaid as a result of late data. This reinforces the importance of greater time and flexibility in the payroll processing window.
Interestingly only 31% recover 91-100% of overpayments to employees. Meaning the majority of employees are not claiming overpayments which will be hurting the bottom line. This could be down to the slow and costly impact of BACS. The results of the survey further support this - 46% believe payroll accuracy could be improved if payroll teams had an extended payroll deadline. Conclusion of results It’s clear there is a long way to go until the whole market is using Faster Payments to process the bulk of their payroll payments. However, with 67% of respondents willing to consider changing to Faster Payments it’s a matter of ‘when’ and not ‘if’.
Until then the vast majority of the market will continue to battle time pressured end of month processing, costly and uncapped BACS/CHAPS fees and delayed employee payments.
3
FASTER PAYMENTS SURVEY REPORT 2022
Made with FlippingBook - Online magazine maker