FEATURE TOPIC
Behind the scenes
So much happens behind closed doors in the payroll industry, from government consultations which impact payroll policy to professionals working in the background of organisations to ensure systems run smoothly and efficiently. Jerome Smail, freelance journalist, looks at the unseen work carried out by the payroll function through the eyes of the experts
have one for every eventuality! In the last two years I’ve been working in the policy and research team, announcements made in the autumn statement (held in November for 2022 and 2023) have provided insight to allow payroll professionals to plan for the tax year ahead. The best example to give here is the new rates for national minimum wage (NMW), which are announced approximately four months ahead of implementation. Karen Thomson: If I had a pound for every time someone had asked how to get a seat with those that make the strategic decisions, I’d be a very rich lady now. You need to understand what the business’s strategic goals are, then look at how you can support them. Build up a track record of performance which demonstrates how you’re supporting the overall strategy. If appropriate, perhaps introduce a payroll strategy that aligns with the business strategy, and provide results, key performance indicators and so on. Volunteer to get involved – ask to observe a meeting to aid your career development. Consider a voluntary non-executive position on a board – perhaps a charity you have an interest in.
This issue, Jerome spoke to: ● Justine Riccomini MSc FFTA AIPA Chartered MCIPD ChFCIPP, head of tax (employment and devolved taxes), the Institute of Chartered Accountants of Scotland ● Samantha O’Sullivan ChMCIPPdip , the CIPP’s policy and advisory lead ● Karen Thomson MSc ChFCIPPdip FHEA, UK payroll director, AAB Group ● Neil Tonks ChMCIPPdip , Chartered member of the CIPP.
How can payroll professionals get a seat at the table, allowing them to feed into the overall success and stability of the organisation for future strategic plans? Justine Riccomini: Payroll is, and always will be, a key component of any business. The payroll director needs to be able to have regular interactions with the finance and human resources (HR) directors, and while they do feed into those functions, those functions also feed into payroll. So, ideally, all three of these directors will be at the table when board meetings and other strategy events take place. Payroll directors need to ensure their work is seen to be of vital importance to the success or failure of the business. There’s knowledge in payroll which is not necessarily known, or understood, by
finance and HR. Payroll should be allowed to communicate its own messages as appropriate so that nothing gets missed. Samantha O’Sullivan: Strategic input from the payroll team can have a positive financial impact on the organisation. For example, following a fiscal statement, payroll should arrange a meeting with board / decision makers / key stakeholders to discuss what this means for their organisation. Knowledge of freezes to rates and thresholds, like those we saw implemented for 2023/24 and continued into the current tax year, mean employers can plan ahead when looking at things like their company car costs and other strategies. Fiscal statements are the only crystal ball we have in payroll, although we know our customers – the people we pay – think we
| Professional in Payroll, Pensions and Reward | July - August 2024 | Issue 102 34
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