REWARD
Not just the push of a button
Fernanda Prado ACIPP, head of employee payroll and pensions service at the House of Commons , talks about how we can dispel the widespread myth that payroll simply pushes a big, red button, and focuses on the hard work we do
W e’re yet to see the day when running payroll will be as easy as that illusive ‘push of a button’. Until then, payroll teams will continue to be involved in a wide range of tasks. Here, we explore the side of payroll those outside of the department aren’t necessarily aware of and consider ways to make improvements. “There’s a mistake with my tax – it’s payroll’s fault” This misconception of payroll duties is common in the workplace. The truth is that it’s Her Majesty’s Revenue and Customs (HMRC) who dictates employee tax codes – payroll teams simply apply them. Another common complaint is, “my salary’s wrong – it’s payroll’s fault!” With salary amendments, we aren’t always informed of changes to a person’s salary or amendments to someone’s terms and conditions. Sometimes we aren’t informed in a timely fashion. So, is payroll really always at fault? Keeping up with government legislation and compliance factors is a job in itself
keeping up with government legislation and compliance factors is a job in itself. Over the last few years, the payroll function saw an unexpected shift from the passenger to the driver seat. We became more apparent and influential in many tough business decisions which boosted our profile. Payroll systems Innovative systems have helped payroll in optimising cost and manpower, but also in ensuring accuracy in numbers. Finding new ways to automate manual processes and adding new functionalities to your payroll system gives the business access to timely and insightful reports, which can support the company in decision making. Most systems can now automatically send payslips, P45s, P60s, notifications and communications, while also providing information in real-time to HMRC and interfacing with other internal systems. In many cases, the human resource (HR) and payroll system becomes a one-stop shop for all employee needs, such as (but not limited to): ● holiday booking ● claiming expenses ● payslip copies ● company policy information. There are still businesses that manually calculate salary, holiday leave, bonus, commissions, hourly pay-rate, etc. However, automating these tasks gives more time for the payroll team to develop insightful reports and controls that add real value to the business. Payroll soft skills Good communication is essential for payroll to play a key role in the business. Delivering a quality service is also imperative to meet business goals. As a payroll team player, you should be pro-active and get ahead of the game: talk to line managers, make sure things get approved on time and liaise with teams such as IT, finance, HR, procurement and legal.
Also ensure you speak with relevant external stakeholders, so that all bases are covered. As a payroll professional, you’ll undoubtedly need other soft skills, such as: ● time management ● problem solving ● teamwork
● attention to detail ● interpersonal skills.
These are just some of the characteristics you’ll need to master, and working effectively with other departments is essential to ensure payroll runs smoothly. On an educational level, a leader needs to assess where the knowledge gaps are within the team, and support them in training, coaching and development. Albert Einstein is rumoured to have said, “The hardest thing to understand in the world is the income tax” Celebrate your craft It’s hard work keeping on top of everything in payroll. Albert Einstein is rumoured to have said, “The hardest thing to understand in the world is the income tax” – only a true genius would recognise the complexities of our craft. It would be naïve to think you’ll know everything about legislation changes, compliance and constant systems innovations. Not to mention managing internal and external stakeholders, having an awareness of the skillsets required for the role and understanding payroll’s place in the organisation. In this journey, don’t expect praise; this is all just part of our job. The truth is that rarely an individual receiving their payslip will understand all the work involved behind that payslip. That’s why we, as payroll professionals, must celebrate the work we do ourselves. Happy National Payroll Week! n
How can we provide a gold service? Updating yourself and ensuring the
business is up to date with changes is key to ensuring payroll runs smoothly, and employees are paid both accurately and on time, every time. Only recently, we’ve had to deal with: ● constant updates to coronavirus job retention scheme guidance ● new remote and hybrid working models ● a variety of changes to National Insurance in tax year 2022/23. The payroll environment is dynamic, and
| Professional in Payroll, Pensions and Reward | September 2022 | Issue 83 46
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