Professional April 2023

REWARD

Payroll professionals must combine soft and technical skills In 2022, HM Revenue and Customs requested that all local authorities in the UK undertake a review of engagements at that time, where individuals providing services were treated as self-employed or outside of the off payroll working rules. PSTAX supported many clients with this review and we’ve witnessed the impact of poor communication between departments. We’ve seen errors made in determining status where hiring managers have been engaging with off payroll workers and have classified them as outside the off payroll working rules, when they shouldn’t have been. These issues haven’t been identified until the case has reached finance, who have subsequently been required to quickly direct payment to payroll to pay the ‘deemed employee’, to ensure compliance. This highlights the fact that communication is key. In this example, not only is the payroll professional required to be equipped with the knowledge to understand whether that worker has been correctly assessed for status, but also to ensure compliance

Communication is equally important with our colleagues, and payroll professionals are required to work closely with a wide range of stakeholders. At PSTAX, we offer an employment tax helpline and we see how the payroll team liaises with, and impacts on, many different departments. Payroll professionals should regularly engage with management and have the confidence to flag to colleagues where a change in legislation may make an impact. It’s important payroll can communicate the sheer importance of compliance to their colleagues. “Payroll professionals should regularly engage with management and have the confidence to flag to colleagues where a change in legislation may make an impact”

requirements have been met by the relevant individuals, so: l has the check employment status for tax tool been completed? l has the worker / fee-payer been issued with a status determination statement? l does the worker understand they’ll be paid as a ‘deemed employee’ going forward? l is the worker aware of the disputes process? If the answer to any of these questions is no, it could be the payroll professional who’s first to hear from the worker. For this reason, it’s important payroll professionals remain up to date with any changes in legislation and know who to speak to with any concerns they may have. To help make things clearer and more straightforward when issues arise, organisations should have robust processes and procedures in place, and ensure payroll are always kept in the loop. I hope this article has highlighted some of the non-technical skills that are also essential for payroll professionals, as well as how important communication between departments is. n

Payroll Technician Certificate ADVANCED The CIPP’s Payroll Technician Certificate meets the industry’s rapidly evolving requirements for knowledgeable payroll administrators.

The Advanced certificate contains the same content as our excellent Payroll Technician Certificate, but includes three extra modules covering the following areas:

● data protection and audit considerations ● automatic enrolment and pension principles ● administering salary sacrifice for payroll

Visit www.cipp.org.uk/PTCA for full details and to enrol today

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| Professional in Payroll, Pensions and Reward |

Issue 89 | April 2023

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