Payroll
...results in increased stress levels in the payroll department...
departments in the month of December, so teams should ensure that they are aware of what the rules are, and also what the effect of reporting incorrectly could be on certain members of staff, who otherwise may see the payment of their state benefits distorted due to this error. Obtaining information from other departments Payroll teams will receive criticism if employee pay is incorrect. There are many instances, however, where pay has been processed incorrectly due to incorrect or incomplete information being submitted by managers or other supervisors from different departments e.g. bonuses and overtime. When considering this, alongside the fact that many people opt to take annual leave in December, action is needed to ensure accurate and timely information is received. Additional pay elements Businesses may choose to offer gifts to their employees or to host a Christmas party in December. Whilst applauded, it can create additional workload, not just for
processing but also because each different element will have associated tax and NICs implications, which need to be observed and implemented correctly to avoid penalties and fines. This element of processing payroll in December emphasises once again the importance of planning and preparation. If payroll departments have made colleagues in the wider business aware of changes to schedules and the importance of submitting information on time, they are more likely to make additional effort to get data across to the team, accurately and within the specified timeframe. Where extra pay elements need to be considered in December, communication remains key so that other teams, responsible for organising annual events, for example, send all relevant information to the payroll department, ensuring that nothing slips through the net. Other The 1% of ‘other’ responses to the Quick Poll included the following.
A member, who processes a weekly payroll of approximately 400 staff, stated that “although there’s no shut down over Christmas, getting pay information in time for paying on a Friday each week is particularly hard in December, when managers seem to take an increased amount of annual leave. This, when coupled with the three bank holidays, results in increased stress levels in the payroll department.” Another member confirmed that “they also have to deal with applications for benefit renewals, which take effect from 1 January”. n It is easy to see why payroll professionals are probably the last to enjoy the festive joy during December. This year, more than any previous year, it is vital for everybody to get an opportunity to relax and unwind, and maybe indulge in a little too much turkey and wine. So, as we race towards the final pay run of 2020, I wish you a merry festive season and a happy and healthy 2021.
Why 25th December? A brief history… C hristmas, the Feast of the Nativity, is an annual festival observed primarily on 25 December as a religious and cultural celebration. Christmas day is a public holiday in many of the world’s nations, forming an integral part of the holiday season around it.
The date of birth of Jesus Christ was fixed in the early fourth century by the Roman church corresponding to the date in the Roman (Julian) calendar of the winter solstice. In addition, 25 December is nine months after 24 March: broadly, the date of the vernal equinox and linked to the conception of Jesus. One hypothesis is that the Roman church deliberately chose 25 December to appropriate Pagan religion festivities that were held by the Romans in honour of the Sun god Sol Invictus. However, there are counter suppositions.
Although most Christians (and others) celebrate on December 25, some do so later (e.g. 7 January). The explanation for this difference derives from the adoption (or not) of the Gregorian calendar which replaced the Julian calendar as it did not accurately reflect the time it takes the Earth to circle the Sun. Though the Gregorian calendar was first introduced in 1582, it took more than 300 years for all countries to switch from the Julian calendar. Aligning the new calendar with the vernal equinox and winter solstice, meant radical change in the year of switchover. In 1582, pope Gregory XIII decreed that ten days be dropped when switching. In the UK, the switch occurred in 1752 – which, incidentally, is partly the cause of the UK tax year beginning on 6 April. Although banned for several years by the Puritans because of the association with drunkenness and other behaviour, Christmas day was restored as a holiday in England in 1660. In 1834, 25 December became a bank holiday. (Source: Wikipedia (https://bit.ly/3lF3dDU))
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| Professional in Payroll, Pensions and Reward |
Issue 66 | December 2020 - January 2021
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