Half of employees couldn't pay bills if pay cheque is late

Half of employees would be thrust into financial difficulty if their pay cheque was late, according to research published today by The Institute of Payroll Professionals (IPP).

This news highlights the importance of efficient, accurate and timely payroll processing, because the research found that if people were to be paid late, 49% of employees said they would find it difficult to meet their existing financial commitments.

The IPP says that many people live pay cheque to pay cheque, especially in the tough economic climate, so it's no surprise that people would suffer if their salary was delayed by a week.

"Just a few days, let alone one week, may prevent employees in fulfilling their financial obligations, including paying for basic necessities such as mortgage or rent payments, as well as food and utility bills," explained Elaine Gibson, senior policy officer for the IPP.

She advised that anyone who hasn't been paid should inform their payroll department as soon as they find out.

Ms Gibson said that if this were to cause an employee to incur bank charges, the employer might be able to help in the aftermath by reimbursing the cost of the charges. "Most employers should have a contingency in place in order that they can make immediate payment to employees," she said.