COMPLIANCE
if we see a downturn in the economy. Data captured at source can provide businesses with key information if they need to exert greater control over their costs – they can see immediately the hours that are being put against tasks and operations. Payroll can, in effect, become an important control room for the entire business. The advent of RTI, a government initiative to collect tax data in real time, is another indication of the demands placed upon payroll — the government wants to collect data, and tax, at source, and it comes down to payroll to supply the data, accurately and securely. As an aside, it’s worth noting that the ability to use technology and data in this way helps minimise the level of human intervention, and therefore the risk of human error. Payroll can now give the business greater understanding of all elements of the employee journey, Service But these are just a few examples of the many ways in which the payroll team can provide a service for the business and its people beyond simple payment processing. It’s a service that still requires the human touch — technology and data allow greater clarity, flexibility and accuracy, but are delivery tools. Payroll can provide that all-important link between the numbers and the people. For instance, as employees become more concerned about the cost-of-living, businesses can look to help staff access a percentage of their pay early, so they don’t have to wait for the monthly paycheck to arrive in their bank account if they face cash flow difficulties. This means staff don’t have to turn to loans or other high-cost options. This will go a long way in ensuring the financial well-being of staff. More generally, many employers offer flexible benefit packages to their staff – the payroll team can help individuals and their costs in real time, not retrospectively
understand the pay and tax implications of certain options and ensure that payments are correct. The payroll team can also help a business and its employees understand the full implications of modern working practices, as businesses adjust to a new working world where staff can, quite literally, be based anywhere in the world. But with this flexibility comes responsibilities to ensure the correct tax is being paid in the correct jurisdiction, and that a business doesn’t inadvertently create a taxable presence in another country. Advisory All these factors mean, in effect, that payroll professionals now need to have a detailed understanding of tax issues and be able to give employees and employers alike the right information so they can make informed decisions. An increased focus on training and qualifications, such as those offered by the CIPP, is going some way to professionalising payroll services. The payroll team can now work alongside the finance function and HR on an equal footing. Critically, the ability to gain qualifications goes a long way in helping to retain the best talent within the payroll profession. With this increased understanding comes the ability to advise the business The ability to gain qualifications goes a long way in helping to retain the best talent within the payroll profession – payroll can deliver data, but it doesn’t just expect others to act on the data. It can offer advice, recommendations and solutions. Payroll act as a control centre — time, attendance and pay data, collected through payroll and workforce management systems can be analysed against other business data points such as sales, the insights from which can be deployed to influence short and long-term business plans. And with companies looking to retain
and attract staff in a turbulent recruitment market, professional payroll teams can advise businesses that are looking at ways other than salary to recruit the right people. It also plays an important role in ensuring the business is compliant with the many regulations it now faces. Compliance has always been important, but directors of a business value the added reassurance that a professional payroll team is able to offer. The future It’s taken a long time for payroll to earn the recognition it deserves, as it moves from processing payments to position itself strategically to support business objectives. It needs to work hard to retain this recognition. Payroll professionals need to be open to change and open to new technology to remain as trusted advisers to the business. Not only that, but in today’s rapidly changing landscape, we need to be ahead of change.
In today’s rapidly changing landscape, we need to be ahead of change
But don’t just take my word for it. Barry Mulholland, chief operating officer for 23.5 Degrees, Starbuck’s first UK-franchised business partner, was looking for an HR solution that met the business needs and allowed them to scale up growth plans. Its old systems, with daily workarounds, weren’t giving him the solutions he needed. So, he turned to BDO and elementsuite for a full-suite employee life-cycle solution. As he says, “[The solution] has saved 23.5 Degrees not only valuable time but has removed numerous workaround processes, thereby allowing our partners to spend more time with their customers. Our partners love it because it’s easy to use and can be accessed anytime through their mobile devices.” This is the power of partnership and demonstrates how far payroll has come from being an undervalued and unrecognised process, to being recognised as a key function that holds all the information around businesses’ most important asset – their people. n
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| Professional in Payroll, Pensions and Reward |
Issue 84 | October 2022
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