Payroll errors affect 15 million people every year
Oct 31 2007
Payroll errors affect 15 million UK workers every year, with nearly one in five of those being overpaid by their employer, according to new research.
The survey, undertaken by ADP Employer Services and YouGov, discovered that 59 per cent of UK employees had experienced a payroll error with 17 per cent of those having been overpaid by their employer.
And the research, published on onrec.com, also revealed that 20 per cent of workers choose not to notify their manager of an overpayment, compared to two per cent of those who had been underpaid.
'Payroll errors could not only cause both employers and employees to be out of pocket, they also cost payroll and HR professionals time in rectifying problems,' Ian Sparrow, freedom director at ADP, told the website.
'One way of minimising pay errors and their effects is by outsourcing the payroll process to an external provider. This will introduce best practice processes to minimise errors, whilst also transfer any risk to the supplier,' he added.
The government has outlined a series of considerations to be taken into account by SMEs when outsourcing payroll including the suitability of the payroll package offered for the SME owner's business and the cost of both setting up and maintaining the system.