Everything about Payroll Payments for Business

Faster, Flexible Payroll for Every Organisation

Caxton's payroll solution offers a secure, cost-effective alternative to traditional BACs, ensuring businesses can process payments 24/7, 365 days a year.

Payroll Payments Explained

Payroll payments refer to the process of paying employees for their work, typically on a regular basis, such as weekly, bi-weekly, or monthly. This encompasses wages, salaries, bonuses and deductions.

How to Process Payroll Payments

Payroll processing involves calculating employee earnings while accounting for deductions like taxes and pension contributions. The net pay is then distributed to employees through payment methods such as BACS (Bankers' Automated Clearing Services) or Faster Payments.

WHAT IS IT?

Faster Payments

Faster Payments is a UK system that processes payroll instantly. Employees receive wages in seconds, even on weekends and holidays.  

It’s ideal for last-minute adjustments or emergency payments, with lower costs, fewer errors and real-time financial updates, making it a modern, efficient solution for payroll.

WHICH IS BEST?

BACS vs Faster Payments

BACS and Faster Payments are two payment systems used by businesses in the UK. They differ in processing speed, availability, cost and functionality.  

Speed and Availability  
- BACS: Takes three working days to clear.  
- Faster Payments: Payments clear almost instantly and are available 24/7, including weekends and bank holidays.

Cost and Accuracy  
- BACS: Higher fees. Manual data entry increases the risk of errors.  
- Faster Payments: Cheaper to use, with automated checks to reduce errors.  

Insights and Analysis
- BACS: Batch payment processing delays access to financial updates.  
- Faster Payments: Provides real-time updates.  

Learn more about why Faster Payments is the faster, more flexible and cost-effective option.

Why Payroll Resilience Matters

Payroll resilience is essential for maintaining employee trust and financial stability. Without backup systems for BACS, businesses face the risk of delayed payments caused by system failures or unexpected outages. Studies highlight that payroll issues, including late payments, can lead to staff dissatisfaction and higher turnover.

For more detailed insights on the challenges and recommendations for improving payroll systems, check out Caxton's latest report.

VISUAL

Infographic: 8 Benefits of Caxton Payroll Payments

FREE CHECKLIST

Is Your Payroll Compliant?

Payroll mistakes can send shockwaves through your entire organisation, impacting team morale, reducing efficiency and tarnishing your company's reputation. So what steps can you take today to guarantee payroll accuracy and compliance? Explore our free checklist, designed to streamline the process and keep your business on track - Download your copy today.

 

Expert Guide to Payroll Resilience

As workforce mobility increases and economic pressures intensify, payroll accuracy has become more important than ever.  

That’s why Caxton and the Chartered Institute of Payroll Professionals (CIPP) have partnered to share exclusive insights into today’s most pressing payroll challenges and how to navigate them with confidence.

Download today

THE RIGHT CHOICE

Is Caxton Right for My Business?

Faster, timely payments are within reach with Caxton. Discover how Caxton enables businesses to achieve real-time payroll insights, improve accuracy and ensure compliance.

TESTIMONIALS

What Our Customers Say 

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Frequently Asked Questions

What is payroll?

Payroll is the process of paying employees for their work, including their wages, salaries, benefits and any overtime.

What is BACS?

It’s a regulated payment system run by Bacs Payment Schemes Limited (now Pay.UK) and is one of the most common ways that money is sent and received from bank to bank.

How long do BACS payments take?

BACS payments typically take three working days to process.

What is Faster Payments?

Faster Payments is a near-instant transfer of funds between bank accounts and operates 24/7, including weekends and holidays.