MEMBER TAKEOVER
Covid-19. We saw recognition in the UK where we were classed as key workers. Many governments across the globe looked for ways to help businesses and employees, trying to protect jobs. They used payroll as one of the main tools to implement new initiatives. Even now when life returns to normal, local governments are reliant on payroll to help reach the public. For a recent example, we can look to Germany, where the government paid everyone €300 through the September 2022 payroll. Another interesting part of global payroll is exploring local policies and how governments are trying to attract the best talent. An example here could be the Netherlands and the 30% ruling. If certain conditions are met, expat employees won’t pay tax on 30% of their earnings for a period of five years. We generally see a high level of taxes in Europe – in many countries, this reaches to just below 50%, so the 30% ruling is a great instrument to attract expat employees with high incomes. A similar policy is in place in Italy and means if Italian nationals return to Italy form abroad, they could see 50% or even
70% of their earnings untaxed for several years. As a payroll professional, when I come across a new country’s payroll, I’m curious to see if it has similar policies designed to attract and retain talent. They used payroll as one of the main tools to implement new initiatives Global payroll technologies I would now like to turn my attention to current payroll technologies. Many global payroll programmes can produce multicurrency payroll reports in seconds and can combine data from different locations to produce useful reports for the finance team. By selecting the best global payroll software, we play a strategic role in automating the work for payroll, human resource and finance teams – this removes manual work for many internal partners. Global payroll software
ensures our data is managed securely and means the antiquated method of sending confidential information via email is removed. With technology and payroll automation, the global payroll role evolved. We’re the department making sure this great technology is correctly implemented in our organisation, and we’re the function that can bring new ideas to the table. All this makes me so curious and excited about what technology will bring next. Global or not, the role of payroll is strategic in any business, whether it be small, medium or large. It’s this unique position which allows us to have a conversation with the chief executive officer of the business and the summer intern in the same day. It’s the role which stays connected with the employee, not only during their time in the company, but much further beyond that. As an example, I’ve recently been contacted by a family of an employee who worked for the organisation 30 years ago – they had questions regarding his pension. This is proof of the special connection the payroll team keeps beyond an individual’s employment termination date. n
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Payroll update MAKE SURE YOU’RE UP TO DATE WITH THE LATEST CHANGES
This focused update course represents the single best opportunity to be briefed and updated on changes affecting payroll.
This course covers: ● Tax and NI contributions ● Operating pay as you earn (PAYE) ● Statutory pay and leave ● Statutory deductions ● Expenses and benefits ● Pension ● Employment rights and other matters
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*Price correct at time of print and based on CIPP membership with eligible grade booking the online delivery of the course.
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| Professional in Payroll, Pensions and Reward |
Issue 86 | December 2022 – January 2023
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