Report highlights the impact of payroll mistakes on financial stability
When your paycheque doesn’t arrive on time it’s frustrating and inconvenient, but for millions of Canadians it would also mean an immediate financial struggle, such is the perilous nature of their finances.
More than half of employees (51%) across the country would struggle to cover basic expenses if their paycheque didn’t arrive on time, according to a poll of more than 1100 working Canadians which reveals that even a short delay in pay would leave them unable to manage bills.
READ: Paycheque squeeze: How stagnant wages are failing to keep up with inflation
The data from Employment Hero highlights how dependent many Canadians are on their wages arriving on time with almost four in ten workers reporting that in the last five years they’ve personally experienced a payroll error or delay. That would translates to approximately 7.8 million Canadians.
Of those affected, almost two-thirds said they dealt with repeated errors across multiple paycheques.
“When people don't get paid properly or on time, it’s not just a payroll error, it’s a broken promise,” says Kevin Kliman, president of Canadian business at Employment Hero. “In today’s economy, where every dollar counts, Canadians can’t afford to be left hanging because of outdated, unreliable systems.”
The survey also shows payroll missteps hurt workplace relationships with almost three-quarters of workers stating they would view their employer negatively if a paycheque was late, although where mistakes favour the employee, only 55% admit they would definitely report being overpaid.
The research finds that part of the problem is that many Canadians aren’t checking their stubs frequently. While 69% review their pay at least monthly, nearly a third go longer, risking unnoticed errors that can pile up over time.
“When payroll goes wrong, employees pay the price – from delayed paycheques putting strain on their budget to a mistake making their tax returns a nightmare,” Kliman adds. “When creating Employment OS [a new all-in-one platform that integrates payroll with recruitment, onboarding, benefits, and HR support], we wanted to support employers and employees by reducing the room for errors with one centralized employment system.”
Employment Hero recommends workers regularly review their paycheques for timeliness, accuracy, proper deductions, and correct hours worked to avoid costly surprises.
