Nearly 90% of businesses made payroll errors in 2022

Some 88% of UK businesses have suffered errors with their payroll, resulting in employees not being paid correctly or on time in 2022, according to new research from HR, payroll, and finance expert MHR. 

The research also identified that 43% of all businesses listed such inaccuracies as the “biggest challenge” they currently face with their payroll operations, with 53% listing the investigation and correction of errors as the most time-consuming element of their payroll.

When asked how they could improve their existing payroll practices and greatly reduce the likelihood of such errors, half of all respondent businesses identified the adoption of new, digital payroll technologies.

According to respondents, the greatest reason for not changing up their payroll technology is due to a lack of resources (46%). However, many businesses will likely reconsider this rationale in 2023, following the revelation that technology adoption “could save time and money equivalent to 18 working days of payroll time per year”.

Anton Roe, CEO at MHR, said: “Payroll errors represent not just a costly mistake to businesses, or a barrier to their growth, but also a real threat to employees up and down the country who will be relying on accurate pay to help navigate the ongoing cost of living crisis.

“While the scale of the problem is deeply troubling, I am heartened by the finding that half of businesses have rightly identified new payroll technologies as a means of improving their existing operations.”