Payroll mistakes aren’t just an inconvenience, they can have serious financial and reputational consequences for businesses, agencies, and workers. From miscalculations in tax and National Insurance to missing deductions or incorrect holiday pay, even small errors can lead to big problems.
For contractors, a payroll mistake can mean unexpected tax bills, delays in receiving wages, or even non-compliance with National Minimum Wage regulations. For agencies and umbrella companies, these errors can result in fines, loss of trust, and even legal action.
So, what are the most common payroll errors?
- Incorrect Tax and NIC Deductions – Miscalculations can leave workers under or overpaying tax, leading to problems with HMRC down the line.
- Holiday Pay Miscalculations – Some umbrella companies roll up holiday pay incorrectly, meaning workers may not receive what they are entitled to.
- Payslip Inconsistencies – A lack of transparency in deductions can lead to confusion and disputes.
- Late or Missing Payments – Cash flow issues or admin errors can result in contractors not getting paid on time.
How veriPAYE Solves These Issues
veriPAYE has been designed to make payroll verification seamless, accurate, and transparent. It ensures workers can check their payslips in real time and provides agencies with peace of mind that payments are being handled correctly.
- Payslip Accuracy – veriPAYE verifies deductions and ensures compliance with tax and employment laws.
- Automated Checks – The system flags discrepancies before they become bigger issues.
- Cost-Effective – At just 9p per payslip, veriPAYE is significantly more affordable than other for-profit solutions, meaning compliance doesn’t have to come at a high price.
By using veriPAYE, businesses can reduce payroll disputes, ensure compliance, and build trust with their workforce. Because in payroll, accuracy isn’t just important—it’s essential.