Payroll
has impacted the workload and the confidence with which the profession has responded. The constant need for changes has created, at times, a perception that ‘payroll got it wrong’. Errors in some of the early examples were not helpful. Though guidance has improved, it is still not inclusive of all common situations; and an improved version control would be helpful as not all updates have been logged. It would also have been preferable to have phase one and phase two guidance separately. Challenges with furlough and CJRS The launch of the CJRS and furloughing unleashed the first of the major challenges – understanding a new language and terminology. This was followed by the challenge in calculating 80% of variable pay, particularly earlier in the year for claims which covered 1–31 March; and then in understanding how all the variables that are so commonplace to payroll could be dealt with. Three key problem areas were single- director personal service companies with annual payments, salary sacrifice and statutory payments. The list of challenges is endless, and you will probably have your own ‘favourites’. There was immediate disappointment at the cut-off limit of 100 employees for uploading data files for making claims, with manual data entry required for fewer than this. Why could the limit have not been lower? But the experience of using the claim portal has been positive. Dealing with errors and making corrections to claims has been a key concern with many employers validating claim details before submitting them. Other members report claiming one full month in arrears to ensure that any needed post-payroll corrections had been made. No payroll software product was designed to deal with furlough and the CJRS claim process; which is not to say that members haven’t been impressed with the efforts of their software providers. In the end, the majority created their own workarounds with Excel being the ‘go to’ product with 81% of survey respondents using this for calculating claims. Fears of flexible furlough include the increased risk of error and the reduction in the available time to make corrections.
Nobody was enthusiastic about the arrival of flexible furlough, and concerns were raised about: ● calculating usual hours on variable pay ● resources to manage the additional workload especially for weekly pay runs ● getting timely information from clients over hours worked, with experience since rollout of flexible furlough confirming fears with clients thinking ‘payroll should know that’ ● collating records and long-term record keeping in the event of HMRC audit. ...payroll has been raised-up and seen as the ‘go to team’ for answers... Morale and a sense of appreciation There has been a range of emotions experienced these last few months, including: exhaustion due to long hours/ days, tears, laughter and fear. There have also been mixed experiences of recognition within the workplace from colleagues, clients and management, with huge variation. Though payroll has been raised-up and seen as the ‘go to team’ for answers relating to all work not just CJRS and SSP, others consider they have been devalued by the experience. A small number (23%) of employers demonstrated their appreciation for the hard-work and commitment in small ways including small bonuses, gift of chocolates, flowers, food packages and time off, or just a simple thank you – the latter being warmly received. Thoughts for the future Home working has resulted in 41% of employers now more open to the idea of employees being home-based, with 21% wholly supportive of all or more home working. However, 10% will still not support the request. Many employers have yet to decide on future working ways and instead are waiting until ‘normal service is resumed’. It is acknowledged that the way that most payroll professionals have had to work since March is not sustainable; and it has only worked because it had to, not because it was a preferred way of working.
As to the feeling of being valued, the survey revealed a pleasing 56%, although worryingly 39% said they do not. Out of adversity comes opportunity Benjamin Franklin, the source of the above quote, did not have the foresight to predict Covid-19 and the global pandemic, but he knew a thing or two about adversity. What has shone brightly throughout this dark time has been the dedication, commitment and loyalty that payroll professionals have for their employer, their colleagues and their clients. There have been thousands of hours of unpaid overtime worked to ensure that all employees continue to be paid on time and accurately and that accurate claims could be submitted to provide employers with essential government funding. As regards lessons learned over the last few months, we acknowledge that time will reveal them fully. However, so far, and in large part thanks to the optimistic and opportunist nature of the payroll professional, we already know the following: ● The value of meeting and communicating with people on a daily basis. ● It is important to maintain good communications and be kind. ● Weekly variable pay is a nightmare. ● We always need to work the problem. ● The UK-wide lockdown will increase the speed and ease of moving to a paperless office. (“Of necessity we had to move clients to electronic payslips – clients are liking this move a lot!”) ● Just how important it is to have a payroll contingency plan in place for someone else to be able to process the payroll. (There are many single payroll teams serving their employers and clients.) ● And, a final quote, “From a personal point of view the importance of being able to go outside, and from a work point of view the value of a good to-do- list.” n Thank you We extend appreciation and gratitude to the members and those in the wider payroll profession who took time out of their extremely busy lives to attend the virtual meetings and respond to the survey.
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| Professional in Payroll, Pensions and Reward |
Issue 63 | September 2020
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