Running payroll shouldn’t feel like a guessing game. But with bank delays, tax deductions, and last-minute changes, getting employees paid on time can be trickier than it should be. So, how long does payroll actually take to process and what causes delays?
Key Takeaways
Payroll typically takes 3-5 business days to process, depending on payroll providers, bank processing times, and compliance requirements.
Submitting payroll at least 3-4 business days before payday helps avoid delays, especially when using BACS payments, which take 3 working days to clear.
How Many Days Before Payday Is Payroll Done?
Most businesses need to process payroll at least 3-4 business days before payday to ensure employees are paid on time. Here’s why:
Payroll Submission Time – Payroll must be submitted before the provider’s cut-off time, typically 3-4 days before payday, especially if using BACS payments.
Bank Processing Time – BACS (the most common UK payroll system) takes 3 working days to clear, so payroll must be processed well in advance.
So, for example, If payday is Friday, you should process payroll by Monday or Tuesday to ensure timely payments.
How Long Does Payroll Take to Deposit?
For most UK businesses, payroll deposits typically take 3 working days to clear when using BACS payments (the most common payroll method). Once payroll has been processed, here’s what happens:
Day 1: Payroll is sent for processing – Funds are scheduled for transfer.
Day 2: Bank processes the transaction – Funds move between accounts.
Day 3: Employees receive their salary in their bank accounts.
Here are some faster payroll options:
Same-day payments (via Faster Payments or CHAPS) are possible but may involve extra fees.
Paper checks take longer and depend on bank clearing times.
What Can Cause Payroll Processing Delays?
Payroll delays can disrupt your business and frustrate employees. Here are the most common causes:
Data Entry Errors
Mistakes in employee hours, tax details, or payment information can trigger delays.
Last-Minute Adjustments
Processing overtime, bonuses, or new hires too close to payday can slow things down.
Bank Processing Times
Payroll sent after bank cut-off times or near weekends/bank holidays may take longer. This often leads to employees saying, "I received my payslip but no pay", as their wages may still be pending in the banking system.
Manual Payroll Systems
Relying on spreadsheets or outdated processes increases errors and slows down approvals.
Compliance Issues
Incorrect tax calculations or missing payroll filings can result in payment holds, leaving employees without their expected wages on payday.
Here’s how you can prevent payroll delays:
Submit payroll early to allow at least 3-4 business days for bank processing and avoid last-minute delays.
Automate payroll processes to minimise manual errors and prevent last-minute scrambling before payday.
Keep employee records updated by ensuring tax details and payment methods are correct to avoid processing issues.
Check bank cut-off times and schedule payments accordingly to prevent delays caused by weekends or holidays.
What We Think
We believe payroll should be quick and stress-free. Business owners shouldn’t have to worry about late payments, tax mistakes, or processing errors. However, many still rely on slow, outdated payroll systems that create unnecessary delays.
From our experience, businesses that automate payroll and connect it with their bookkeeping get faster, more reliable payments with fewer mistakes. A real-time payroll system makes payday smoother, reduces admin work, and keeps everything on track.
How JAFA Can Help
At JAFA, we make payroll processing simple and stress-free by helping businesses avoid delays, errors, and compliance issues. Our streamlined payroll services ensure that both employers and employees have everything they need, all in one place.
✅ Easy Employee Access – Employees can securely access payslips, P45s, and P60s through a dedicated app, keeping payroll records organised.
✅ Simplified Payroll Reporting – Employers can report wages and salaries directly through the app, which keeps messy spreadsheets at bay and reduces the risk of errors.
✅ Reliable Staff Payments – We can handle staff payments on your behalf to ensure your employees are paid accurately and on time.
✅ Seamless Compliance – Stay compliant with HMRC regulations, as JAFA ensures payroll is processed correctly, reducing the risk of tax errors or penalties.
Contact our expert accountants in Birmingham, UK, either by booking a FREE discovery call or calling us on +44 121 227 6277.
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