REWARD
“Understanding payroll is crucial, both as a career and a life skill. It empowers individuals to manage finances, ensures compliance with laws and enhances job prospects in any industry”
payroll department to pay all employees accurately and on time, every time. The payroll department is the backbone of every organisation, accountable for not only compensating employees correctly for work undertaken, but also ensuring compliance. With more than 170 pieces of legislation currently relevant to payroll processing, it’s a crucial area for every business and it’s also the costliest. The total payroll costs – including staff salaries, benefits, pension contributions and National Insurance contributions (NICs) – equates to around 60% of an organisation’s expenses. The process of the pay as you earn (PAYE) scheme involves collecting income tax and NICs on behalf of the government, which contributed £413.4 billion to the UK economy in the 2023/24 tax year. Processing payroll could be your small contribution to the UK economy. The benefits of choosing payroll While there is so much uncertainty in the world today, one thing is certain: payroll isn’t going anywhere. It’s the most efficient form of tax collection and it’s also a function that every business in every industry needs. Absolutely nobody goes to work if they’re not going to get paid. Most of the skills required in payroll are also transferable to other fields, including: l being a good team player l the ability to prioritise and take initiative l working to tight deadlines l a strong willingness to learn l excellent customer service l clear and concise communication, both written and verbal l problem-solving and being able to think creatively. There’s a diverse range of careers in the payroll world, from apprentice to payroll director or even chief executive officer, and everything in between. Currently in the UK, payroll directors can demand a six-figure salary. As far as we’re aware, Helen Tupper and Sarah Ellis’ (2020) The Squiggly Career, Ditch the Ladder, Discover Opportunity, Design your Career wasn’t written with a payroll career in mind, but it could have been as it fits perfectly. I’m now in a position to support other professionals and give back to the industry, translating legal rights into layman terms so they can be applied in the workplace.”
Understanding the payslip: a critical life skill Every worker has the legal right to a pay statement, more commonly known as a payslip, on or before their payday. However, many people don’t understand or even read their payslip at all. Understanding your payslip and ensuring that you’re receiving the correct pay is essential for good financial wellbeing. The more you understand about your money, the better the chances of financial security for you and your family, now and in the future. It can also help you save money and avoid debt. The CIPP is driven to promote the understanding of payslips and support all who need it. You can access the free CIPP Understand Your Payslip tool at: https:// ow.ly/cZhK50TvtbX. Educational pathways A career in payroll management offers a solid and rewarding path, particularly for those who enjoy working with numbers and have an eye for detail. A combination of education and practical experience is essential to ensure good habits and proper ways of working (such as calculations) are established early. Courses such as IPP Education’s level 3 Payroll Technician suite (https://ow.ly/Bpa650Tvtgz) and level 4 Payroll Specialist Certificate (https:// ow.ly/UU5V50Tvtl7) lay the foundation for understanding payroll processes and the intricacies of relevant legislation. Education alone, however, is not enough. Gaining practical experience through part-time jobs and volunteering in payroll departments allows young professionals to apply knowledge, understand real-world challenges and develop problem-solving skills. For those who prefer a more vocational route, apprenticeships in payroll might be more appealing and equally valuable. A blend of education and hands-on experience will enhance competence and make candidates more attractive to employers, setting them up for success in a payroll career.
How schools and employers can support aspirations In general, payroll is frequently overlooked as a career choice. Working with schools to promote and encourage an understanding of payroll is an important part of financial education, in addition to inspiring a fantastic career option. Organisations offering internships, mentorship and training can create mutually beneficial opportunities. Employers can gain new and motivated staff members, bringing new skills and perspectives, while providing significant workplace experience that enhances professional development and employability. You can view payroll career interviews from a range of successful payroll professionals in different roles and various industries here: https://ow.ly/I95B50TvtqW. Building a future in payroll A payroll department plays a pivotal role in everyone’s lives and provides crucial support to the UK economy. The profession is fast-paced and rewarding, with no two days the same. The nature of the profession provides appropriate challenge, job security and various roles from the very start of a career journey to potentially reaching the top of an organisation, with an attractive salary. Understanding payroll is crucial, both as a career and a life skill. It empowers individuals to manage finances, ensures compliance with laws and enhances job prospects in any industry. Mastering payroll not only opens career opportunities but provides essential knowledge for personal wellbeing and informed decision-making. So, if you’re looking to take control of your financial future, explore a career in payroll! There is growing demand across industries and now is the perfect time to gain skills that blend finance and technology. Start your journey today – whether through education or hands-on experience – and unlock the endless opportunities in this dynamic field. n
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| Professional in Payroll, Pensions and Reward |
Issue 105 | November 2024
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