REWARD
“Payroll, it’s just paying people, isn’t it?”
Stewart Waddell ACIPP, operations director, Dataplan Payroll by IRIS, discusses all the different characteristics and skills that make a true payroll superhero
For those among the working population, getting paid is an essential part of our lives. But for those who haven’t had exposure to the payroll profession, it can often be taken for granted. Unfortunately, it’s often lumped in as just part and parcel of what the ‘people department’ does. Over the years, I’ve seen the payroll industry and profession evolve. What was once a role that many fell into ‘by accident’ is increasingly becoming an attractive career to be pursued with intention. Payroll is more than just paying wages So, let’s address the biggest preconception. Payroll is just about paying people. What started as cash in wage packets is now bank transfers and payslips. Right? This couldn’t be further from the truth. Over the decades, payroll has become so much more than this and now covers an array of complex areas, including pensions, salary sacrifice schemes and employment law. When I started out in payroll in the 1990s, it was a much simpler process. It was gross pay minus some third-party payments, such as attachment of earnings and pension payments. Now there’s:
Payroll professionals must wear many hats and possess many skills to accurately deliver their service and satisfy stakeholders ● automatic enrolment ● real time information ● benefits in kind ● student loans ● national minimum and living wage. And the list just goes on! Even junior payroll professionals need to learn the fine art of balancing various pay elements and how quickly the legislation that impacts payroll can change. For example, in 2021, the off payroll rules came into effect for medium and large businesses in the private sector. Then, in April 2022, the new health and social care levy was introduced, which saw a 1.25%
increase in both employee and employer National Insurance contributions for tax year 2022/23. Payroll professionals must wear many hats and possess many skills to accurately deliver their service and satisfy their stakeholders, whether internal employees or external clients. The impact of the pandemic and global events The ultimate example of how payroll now must respond quickly to changes in the economy and law was during the pandemic. As we all tried to navigate the vast changes to our work and lifestyle because of lockdowns and restrictions, the payroll profession was hit with new legislation and updates, sometimes overnight, which had to be enacted with accuracy and speed. While initiatives such as the coronavirus job retention scheme were a lifeline to millions of employees and businesses, behind the scenes, it was us payroll professionals who had to make it happen. It was not only the calculations that were complex, and changed over the extended period of the scheme, it was also changes
| Professional in Payroll, Pensions and Reward | September 2022 | Issue 83 38
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