The future of payroll
...challenge will be for older systems to innovate and adapt their software to fit with these new demands
too, this visibility gives them the power to proactively adjust their financials up or down if they don’t see the figures they are expecting. But it’s not just the commercial benefits that should interest businesses. The impact of real-time pay and its ability to open up the doors for offering ‘pay-on-demand’ to employees will undoubtedly have an impact on the financial wellbeing of the workforce. According to the Chartered Accountants Benevolent Association, ‘financial wellbeing’ is about a sense of security and feeling as though you have enough money to meet your needs. It’s about being in control of your day-to-day finances and having the financial freedom to make informed choices that allow you to enjoy life. Allowing employees to have more visibility over what they have earned as well as control when they are paid goes hand in hand with this. Giving them access to the wages that they have already earned, will play a huge part in reducing finance-related stress and absenteeism, something that is currently costing UK businesses around £15bn per year. A recent study by financial wellbeing
provider Neyber, which explored the spending habits and attitudes of more than 11,000 employees and 720 employers, found that three in five (62%) employees were affected by money worries – a figure that translates into more than 20,000,000 British workers across all income groups. Introducing pay-on-demand will also help to reduce the need for pay advances and salary loans, which are coming under increasing scrutiny from the Financial Conduct Authority. These are now classified as consumer credit and can often serve to increase the amount of financial stress and anxiety suffered by workers. While pay-on-demand is still perhaps an alien concept to many companies, it isn’t as scary as you might think. Businesses can set a number of parameters, such as withdrawing a percentage of pay per month or year or limiting the number of withdrawals per month. Rules can even be set to charge the employee for each transaction to cover admin costs should
the business wish to do so. As more and more organisations become aware of the possibilities that new technology can bring to payroll, we are seeing a shift in the way in which payroll software is selected. One of Silver Cloud’s core services is helping businesses choose the right payroll software for their business, and while we are used to questions regarding headcount suitability, compliance and reporting functionality, forward-thinking companies are now asking “how does this software help us meet our employees’ needs?” This is clear indication of the changing mindsets of payroll professionals and there is a lot of new tech coming onto the market that can service this paradigm shift. The challenge will be for older systems to innovate and adapt their software to fit with these new demands. We’re looking forward to seeing how they respond and are keeping a close eye on developments. n
DELIVERED VIA VIRTUAL CLASSROOM P11D, expenses and benefits
Designed to give delegates clarity and confidence about how to process the P11D, P11Db forms, PAYE Settlement Agreements (PSA) and net to gross calculations.
This course covers: ● Outline of expenses and benefits ● Identifying the different returns for expenses and benefits ● Identifying the various schemes with which benefits are offered
● Identifying private medical treatment or insurance ● Summarising the mechanics of payrolling benefits
● Summarising the purpose of PAYE Settlement Agreements (PSAs) ● Summarising the principles of travel and subsistence expenses ● Calculating grossing up correctly ● Demonstrate form P11D completion
Book online at cipp.org.uk/training or email enquiries@cipp.org.uk for more information.
cipp.org.uk CIPP_UK cip .org.uk @CI P_UK
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| Professional in Payroll, Pensions and Reward |
Issue 59 | April 2020
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