A study found that 84% of small businesses experience payroll errors, with 40% facing penalties costing thousands of pounds. Despite spending an average of £2,724 monthly on outsourcing payroll, many struggle with outdated processes. Manual processing remains common, with 31% using spreadsheets. The most common errors include wage miscalculations and late payments.

Employment legislation changes have led to 67% of businesses worrying about employee complaints related to payroll. Technology concerns also arise, with 70% of SMEs struggling to keep up with payroll technology. Top barriers to switching from manual payroll include limited expertise, lack of time, cost, and onboarding time. To help, Employment Hero offers free payroll software for UK businesses.

Kevin Fitzgerald, Employment Hero UK managing director, emphasized the complexity of payroll compliance for small businesses. Outdated systems and limited resources cost SMEs dearly, leading to fines. Payroll errors can be detrimental, so providing free payroll software helps level the playing field and support SME growth and employment.

Read more at Yahoo Finance: Payroll compliance challenges for small businesses, survey reveals