The future of payroll
Karen Thomson ChFCIPPMSc Dip FHEA , partner and head of payroll at ArmstrongWatson , outlines her bright and exciting vision
W riting about what payroll might look like in the future made me think about from where it has come. Obsolescent NICs (National Insurance contributions) stamp cards – a bit before my time – to Kalamazoo sheets – definitely in my time – and then the revolution of computers. I recall life without the internet and mobile phones and, indeed, computers, but the world is a different place now. I see payroll being in a different place in the future. Payroll has always been a transactional process, full of potential compliance pitfalls and even now it has many transactional processes; and to be fair, most if not all can be now processed via payroll software. Software can vary in capabilities, but knowing that payroll will continue to evolve it is only right we ensure we are future proofed sooner rather than when it is too late and we are left behind. Currently I use a server-based product which has served the bureau and employers well, and I remember the early days of ‘the cloud’ and wondering whether it was secure and where exactly did it go to and come from? Recently, like many users of payroll software, it has been time to review what we use to ensure we are as future proofed as possible. For me that means moving into the world of cloud- based software, as it offers the following to name just a few. It’s eco-friendly using cloud technology, allowing us to access payroll software anywhere and from any device and any time. This is very important, and although my team were able to work from home at a moment’s notice for lockdown, it was only
because Armstrong Watson has a strong IT team and infrastructure using VPNs (virtual private networks) that this was possible. With cloud-based technology it would have just been there. It can be accessed in real time and by our clients. It has various protective security features to ensure data is safe. It can allow a bureau to continue to grow as the payroll software will grow with us. With server-based software year-end updates or enhancements (with any bug fixes) involves a software upload with back-ups etc. Where truly cloud-based and innovative, payroll software can offer agility to not only be proactive with new legislation but also reactive to urgent processes such as supporting payroll departments/agents with COVID-19 job retention scheme calculations. In reviewing our payroll software, I admit to being amazed by the volume of newcomers to the market. So many whizzy features, colourful (I do like pink) and modern. One I really like uses avatars for some of its guides and features; so fun, as well as practical. I see payroll bureau offering more support to clients by way of human resources (HR), such as contracts of employment. Having this all in one cloud-based system will be a real benefit. Although having separate payroll and HR systems might be the way to go, using new technology such as API (application programming interface) or equivalent is seamless to the user and/or clients. I also see self-service becoming the norm with full paperless processes; oh, for that day! It is all well and good to have great
software to take care of the transactional churn and to embrace AI (artificial intelligence), but what will we do with ourselves if the computer does it all? Now this is where I see a very bright and exciting future for all payroll professionals. I believe payroll professionals can add a massive amount to any business and/or clients if an agent. We eat, sleep and breathe compliance. We are constantly learning and reviewing what we do all the time. We are fantastic at adapting to change; how many employers said payroll processing could never work from home? Well, it is a good job we proved the sceptics wrong or our heroes would have been working for nothing during the pandemic. With our expertise and knowledge, we can be advisors in many areas such as:
● benefits in kind ● PAYE income tax ● NICs ● family policies ● termination packages ● employee well-being benefits
● national minimum wage compliance ● payroll process health checks for the businesses and/or clients ● helping clients/employees move away from paper which will improve the carbon footprint ● financial well-being being incorporated into payroll offerings ● budgets for forecasting to aid the business ● being creative and thinking outside-the- box (because we often have to) ● helping businesses deal with change ● communication via articles, blogs, webinars and more. The above is just an outline, a snippet of my vision of where payroll will go, but really the sky is our limit and I am looking forward to embracing what is coming next. n
...what will we do with ourselves if the computer does it all?
| Professional in Payroll, Pensions and Reward | September 2020 | Issue 63 48
Made with FlippingBook - Online magazine maker