CIPP FUTURE OF PAYROLL REPORT 2019
Key issues facing your payroll department now
What are the key issues?
GDPR and the Data Protection Act
Holiday pay calculations
Expenses and benefits
Automation of business processes
Gender pay gap reporting
Implementing a new system
Given the recent excitement around the implementation and go-live of GDPR on 25 May 2018, there was no surprise that GDPR was at the top of the list (38.5%). With the impact of substantial fines (up to € 20million or 4% of global turnover, whichever is greater) payable by companies if there is a non-report of data leak/breach e.g. sending an email with personal data which is un-encrypted to a wrong email address, someone receiving the wrong payslip; ensuring that your data is protected and controlled is now more critical than ever to every payroll team. The second-place issue is ‘automatic enrolment’; this is surprising given that this is not a new government initiative. The former Work and Pensions Secretary Esther McVey recently stated in her online article (https://www.gov.uk/ government/news/automatic-enrolment-breathing-new-life-into-britains-retirement-prospects) that membership of occupational schemes has gone-up by 49% in the last five years with a staggering membership of those schemes being 41.1 million in 2017. Is it the sheer volume of people now having the opportunity of joining the scheme/s or , is it the complexity around the mechanics of understanding if someone is in or out or , is it that the payroll systems aren’t helping payrollers by reducing the issues around automatic enrolment? It could be both the phasing of contributions and that employers are not aware of their obligations, especially when outsourcing that has resulted in automatic enrolment still being a key issue for payroll departments. It could also be a key issue for organisations now facing their three year re-enrolment and having to enrol employees who have previously opted out. This will cause additional administration, particularly around communications to assist employees in understanding why they have been put back into a pension scheme which they previously opted out of.
Holiday pay calculations ( 31.75% ) was the next most common cause of concern facing payroll departments, unsurprising given the number of Employment Tribunal cases which have affected the rules for making these
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