COMPLIANCE
To explore the unique language of payroll, the CIPP’s policy team have identified several familiar terms that may leave colleagues fromother departments, frankly, baffled The language of payroll
W hen payroll professionals with jargon, acronyms, and reference to policies. Those not familiar with the industry would understandably be left bewildered. The following outlines some niche payroll terms, but the list is obviously not exhaustive. ● Alabaster – A form of mineral or rock frequently used for carving – that is, if you do not work in a payroll team. discuss their work, it is inevitable that conversation will be littered In payroll, ‘Alabaster’ is in reference to a case referred by a UK court to the European Court of Justice for guidance and decisions regarding application of the Directive 92/885/EEC, commonly known as the ‘pregnant workers directive’. The case had implications on the way in which an employee’s average weekly earnings (AWE) for statutory maternity pay are calculated. Where the employee is awarded a pay rise within a specific period, that award should be reflected in the AWE calculations for her SMP. The label ‘Alabaster’ is simply the surname of the woman who brought the claim to court. ● Dependants leave – Dependants leave is different to parental leave (see below) and often the source of much confusion. Individuals are entitled to unpaid time off
(EPS) must be sent to HM Revenue & Customs (HMRC) in order to reclaim amounts related to statutory maternity, paternity, adoption, shared parental and bereavement pay, and to claim the employment allowance. In addition, the EPS enables construction industry scheme deductions to be reclaimed by limited companies, and apprenticeship levy amounts reported. Where no employees have been paid in a tax month, an EPS should be sent in place of a full payment submission. An EPS should be submitted by 19th of the following tax month to apply any reduction on what is owed in the full payment submission. ● Full payment submission – A full payment submission (FPS) is a statutory return which is to be sent to HMRC to report payments and deductions that have been made to an employee (or pension recipient). A FPS should be sent for everyone who has been paid. The FPS needs to be sent on or before the pay date of the payee. The pay date in the FPS should be the payee’s usual pay date, even if they are paid earlier or later; for example, if their usual pay day falls on a bank holiday the usual pay date should be reported in the FPS. ● Notional payments – Notional payments are those processed within
to deal with an emergency that involves a dependant. A dependant could be a: spouse; partner; child; grandchild; parent; or anybody else who depends on an individual for care. ...that award should be reflected in the AWE calculations for her SMP. There is no prescribed amount of time off that someone is entitled to, but the advice is that a reasonable amount of time to deal with the emergency should be granted. Employers may opt to pay employees for time off spent looking after dependants, but this is not mandatory. Individuals should check their contracts of employment to clarify the stance within their company. Where an individual is aware of the situation beforehand, this does not create an entitlement to take dependants leave. They could potentially request parental leave instead if they are classed as an ‘employee’.
● Employer payment summary – An employer payment summary
| Professional in Payroll, Pensions and Reward | July / August 2021 | Issue 72 20
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