Those who identified that they used CHAPS to correct payment errors made, on average make 127 CHAPS payments across the year, at an average cost of £11.42 per payment. An additional £1450.34 cost as a direct result of payroll inaccuracy. The survey confirms that 46% believe payroll accuracy could be improved if payroll teams had an extended payroll deadline. Furthermore, 1 in 3 believe employees would be more willing to work additional shifts or overtime if they knew they would be paid more quickly. Would employees be better motivated to working additional shifts/overtime if they were paid more quickly?
Faster payments in payroll
Whilst most payments are processed via BACS, 67% would be willing to consider changing to faster payments for expenses, PAYE payments, court order and other third-party payments. The benefits of faster payments were clearly identified by at least half of participants, with the top 5 recognised as: ● 58% - Removal of additional costs e.g. CHAPS ● 57% - Ability to make payroll payments any time of day including weekends ● 56% - Speak of responsiveness to employees/clients ● 52% - Extended payroll deadlines ● 42% - Visibility of transaction status/confirmation that employee has been paid However, respondents were uncertain about the cost of faster payments . When asked how much they thought faster payments cost, responses ranged from £0 to £30. On average the anticipated cost was £2.67 per transaction, this number far exceeds the cost payrollers should expect to pay for this type of payment.
Headlines: ● 67% would be willing to consider changing to faster payments
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FASTER PAYMENTS SURVEY REPORT 2022
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