The challenges faced during 2020 have encouraged the nation to reprioritise what matters. With the coronavirus job retention scheme being introduced and employment being uncertain, one thing that has been critical is receiving a correct payment on time.
If done right, payroll goes unnoticed. When done incorrectly, it can cost your business. Payroll specialists have been unsung heroes throughout the year, ensuring workers receive the pay they expect each month.
That’s why from 7th to 11th September, we’re celebrating National Payroll Week 2020 to recognise the dedication of payroll specialists in the UK and around the world.
Keeping the UK Paid
Payroll specialists have adapted to remote working all while picking up the increased demands of changing workforces and pay structures. At its peak, almost nine million UK workers were rolled into the brand-new furlough scheme, introduced to help save jobs.
It was the responsibility of accounts teams to ensure this ran smoothly and employees received their payments as expected. There was also the added impact of redundancies and new hires in response to growth and loss. While the work of payroll teams is something that should never go unnoticed, there’s never been a better time to acknowledge the importance of the work they do.
As a critical response to the government’s financial schemes, Codapay introduced furlough functionality to support business’s needs. Our bulk processing and automation functionality have allowed payments to be made faster and with fewer errors, helping to save time while budgets and resource are stretched.
Helping the economy
Over 2020/21, the collection of income tax and National Insurance is estimated to contribute roughly £325.7bn to the UK economy. This is supported by payroll specialists’ compliance with everchanging legislation and by taking care to avoid error, including making sure all employee data is up to date.
Codapay payroll software has facilitated the payment of over 60,000 workers nationwide each month. We thank all our clients who have chosen us to administer their payroll and for their ongoing commitment and dedication.
Why investing in payroll matters
- Payroll errors can impact business profits. In fact, they cost the average FTSE business up to £30m per year (PWC).
- They can also impact client retention. 49% of employees would begin job hunting after just two errors (Workforce Institute).
- Payroll legislation like National Minimum Wage is everchanging, and failing to keep up can incur penalties of up to 30% of the tax due (HMRC).
- Let’s talk technology. Cloud-based systems can save up to 20% of IT spend (Netsuite). It also offers greater efficiency to businesses, allowing efforts to be refocused.
- Payroll errors are more widespread than you’d think. For example, an Australian study found 33% of employers made mistakes each month (Australian Payroll Association).
Errors are inevitable, but how can they be minimised? Invest in your payroll operations. This includes training on payroll legislation, utilising payroll software with automation features, and handling any errors efficiently.
Codapay provides cloud-based payroll software for umbrella companies and businesses, using technology to help save time and money. Find out more about our solutions.
