Payment errors
No matter the size of business, and the amount of care that’s taken, payment errors are inevitable. Our survey revealed 3 out of 4 respondents had a payment error rate of less than 1%. That’s good news: incurred costs are kept low, and accuracy rates remain high. Payrollers expect a 99%+ accuracy rate so even when error rates are low, the time spent on correcting them can be substantial. Payments made outside of payroll However, even with a low percentage of errors, payroll teams process in volume and are still required to make additional payments outside of the regular pay run. Almost half of respondents deal with 6 or more payments outside of the standard pay run, with 1 in 5 dealing with 20 or more.
Howmany payments are made outside of the regular pay run each month?
The remaining 23% of respondents identified during each pay cycle, between 1% and 10% of payments had errors, increasing the costs of payroll by using payments such as CHAPS to correct these issues. Recovering overpayments We found the late notification of leavers is a common issue in payroll teams and can generate complex errors and significant overpayments. Yet only 31% of survey respondents recover 91-100% of these overpayments. While 31% recover 0-10% of all overpayments made to leavers.
What proportion of overpayments to leavers are eventually recovered?
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FASTER PAYMENTS SURVEY REPORT 2022
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