How are errors corrected? The majority of professionals are using Faster Payments as part of their payment correction process. However, 41% of respondents use the slowest payment method, BACS, to correct payment errors and to make additional payments to employees. This results in employees having to wait a minimum of 3 days before they receive the pay due to them.
22% continue to use the most expensive payment method CHAPS, which removes the time barriers of BACS but at a significant cost.
Payments made outside of the standard payroll are particularly time consuming and are often administered on an individual basis making the manual element much more challenging than in a standard pay run. The time spent making these additional payments can’t be underestimated in any payroll environment. Who pays for these errors? In a bureau/outsourced payroll environment, 10% of providers take on these additional costs themselves, and 43% pass on the cost unless the bureau/provider was at fault. Maintaining a balance between tight margins, and client satisfaction is an ongoing challenge for those providing payroll as a service. The frequency of payment errors, and the cost of correcting them will inevitably place a strain in both of these areas.
Headlines: ● 41% of respondents use the slowest payment method, BACS, to correct payment errors.
7
FASTER PAYMENTS SURVEY REPORT 2022
Made with FlippingBook - Online magazine maker