Professional September 2024

THE JUGGLING ACT PROFESSI NAL in Payroll, Pensions & Reward Issue 103 September 2024 Official publication of The Chartered Institute of Payroll Professionals

PAY AS YOU EARN SETTLEMENT AGREEMENTS Navigating the confusing deadlines and associated penalties THE PAYROLL CIRCUS How to manage the various acts performed by payroll professionals LABOUR’S MANIFESTO AND THE KING’S SPEECH The impact of recent announcements on the industry

CIPP UPDATE POLICY HUB PERSONAL DEVELOPMENT

cipp.org.uk

Meet us at CIPP ACE 2nd - 3rd October 2024 The Celtic Manor Resort, South Wales

Payroll Outsourcing Services Accurate, Compliant and Secure

01276 456902 sales@frontiersoftware.com www.frontiersoftware.com

OFFICES IN AUSTRALIA, INDIA, MALAYSIA, NEW ZEALAND, PHILIPPINES, SINGAPORE AND UNITED KINGDOM

32

“Juggling is an illusion. In reality, the balls are being independently caught and thrown in rapid succession. It is actually task switching.” Gary W. Keller

Editor’s comment

40

Welcome, payroll, pensions and reward professionals, to the September issue of the magazine. This month is the one we’ve all been waiting for, where we can officially celebrate our hard work and achievements during National Payroll Week. Taking

place from 2 to 6 September this year, payroll professionals across the country are marking the occasion in style. We’ll be bringing you more details and photos in a later issue, so watch this space. This issue focusses on how working in payroll can often be a juggling act. After all, it regularly involves meeting deadlines while providing information for other departments and dealing with any updates from the government. Throughout it all, it’s important to remain calm under pressure. Our feature article on page 32 provides insights and guidance on just how to manage the challenge of multitasking from a range of industry experts. It considers techniques and tools which can be used to juggle various priorities, as well as ways in which to communicate these priorities to stakeholders. The topic of juggling payroll responsibilities is also explored in our feature on page 40, which also notes the importance of stakeholder engagement. Additionally, it highlights how technology can help and where to find the relevant support and advice. And, for top tips on how you can stay both motivated and organised when spinning many plates, turn to page 44. Now, in the last issue you may remember me mentioning there was a chance we would have a new Prime Minister and government very soon, which is now the case. Since July’s general election, there have been announcements affecting the profession by the new Labour government and in the subsequent King’s Speech. There are four pieces of legislation in particular that will have some impact, so it would be wise to consider the changes they could bring for your organisation. Find out more on page 60.

44

60

Kavitha Sivasubramaniam (editor@cipp.org.uk) Editor

32 - Feature topic – the juggling act By Jerome Smail 40 - The payroll circus By Karen Thomson

44 - Staying motivated and organised in a busy world By Charlotte Holdsworth 60 - Hot topic – Labour’s manifesto and the King’s Speech: the impact on payroll By Mathew Akrigg

Carrier sheet Put in your recycling Outer wrap Put in food waste or composting

Cover Put in your regular rubbish Inner pages Put in your recycling

It takes approximately 70% less energy and water to recycle paper than to create new from trees. Help us reach our sustainability goals by recycling this magazine.

2 0 3 5 CIPP COMMITMENT TO CLIMATE CHANGE

As a sustainable alternative, keep hold of me for future reference.

1

| Professional in Payroll, Pensions and Reward |

Issue 103 | September 2024

Chair’s message

Chief executive officer Jason Davenport MCIPP MloD CIPP board of directors Sohail Butt ACIPP Louise Gray ChMCIPPdip Stuart Hall MCIPPdip Dianne Hoodless MSc ChFCIPP FHEA Ana Laiu MSc FCIPPdip Brendan Mulkern FCIPP Justine Riccomini MSc FFTA AIPA Chartered MCIPD ChFCIPP Lara Smart ChFCIPPdip Brian Sparling ChFCIPPdip Cliff Vidgeon BA (Hons) CMA ACG ChFCIPP Clare Warrington MSc FCIPPdip AFHEA Editor Kavitha Sivasubramaniam editor@cipp.org.uk Advertising Daniel Cull 07795 652645 | advertising@cipp.org.uk Design James Bartlett and Nicole Davis design@cipp.org.uk Printing Redactive

This issue shows how working in payroll can often be a juggling act: meeting deadlines while providing information for other departments and dealing with any updates from the government. While looking at the different areas payroll must cover, there will also be articles which explore how to deal with the juggling act and how to remain calm under pressure. Since this is the September issue, I hope you have all enjoyed your

summer holidays and are happy to be waving the kids back to school. During long periods of holidays as a parent it can really be a juggling act sorting cover for childcare while making sure you meet your deadlines at work. All roads lead to payroll and sometimes juggling deadlines, queries and requests can be challenging. The demands from other departments in the business, such as finance wanting costings and IT needing to know who has joined and left the workplace, can add stress to an already significant workload. Then we have all the government changes, making sure our payrolls remain compliant and that our software providers have updated systems to enable us to meet the requirements. Changes to contracts, the Transfer of Undertakings (Protection of Employment) Regulations 2006, seasonal increase and decrease in staff levels; it’s all in a day’s work for the payroll team. Working under pressure can be difficult and hopefully some of the articles covered in this issue can help. Our members are never alone. The CIPP is here to help, from advisory to consultancy and qualifications, so don’t hesitate to get in touch.

Clare Warrington MSc FCIPPdip AFHEA (clare.warrington@cipp.org.uk) Chair, CIPP

Useful contacts

CEO’s message Welcome to this issue of Professional magazine. A few of you will know that I have a boat moored in Spain, for taking time out with the family as often as we can. As the family grew, we always had different weekend pursuits – horse riding, dance classes, hockey and, more recently, rugby – but as the children became young adults this requirement reduced. Hence the review of new pursuits such as

Consult consult@ippeducation.co.uk 0121 712 1023 IPP Education education@ippeducation.co.uk 0121 712 1023 Events events@cipp.org.uk 0121 712 1013 General enquiries enquiries@cipp.org.uk 0121 712 1000 Marketing marketing@cipp.org.uk 0121 712 1033 Membership membership@cipp.org.uk 0121 712 1073 IPPE Training training@ippeducation.co.uk 0121 712 1013 cipp.org.uk @CIPP_UK

walking, enjoying art (both exhibitions and having a go) and water pursuits. The boat is named Calm Waters, which is a status I have often sought, though payroll is rarely that calm; and this issue’s theme is ‘The juggling act’ . Throughout my career in payroll, remaining calm under pressure was always a strongly sought-after attribute and a real skill when managing teams, client relationships and various stakeholders to ensure the job gets done. All of this is behind the scenes for those who receive their payslip every period. Often the swan analogy is used to present an image of calmness and serenity on the surface, with all the action happening just below and out of sight. This ability to stay calm and navigate turbulent times is an absolute life skill and one that is valuable in both business and personal settings. As leaders and as team members, showing your team that you are not easily flustered and able to handle challenges when the going gets tough, is a quality that should be praised much more. Keeping a clear head and helping those around you to do the same creates great focus and critical thinking. On other matters, the autumn programme of events starts with National Payroll Week and let’s hope we get a mention from our newest Chancellor of the Exchequer. And, of course, Annual Conference and Exhibition 2024 is just around the corner. I am really looking forward to catching up with as many of you as possible and enjoying the jam-packed conference. I welcome contact with all our members, so do please reach out to me at the contact details below.

Trademarks The CIPP logo, the initials ‘CIPP’ and the words ‘Professional in Payroll, Pensions and Reward’ and ‘CIPP Consult’ are trademarks of the Chartered Institute of Payroll Professionals. Copyright: The Chartered Institute of Payroll Professionals 2024. The Chartered Institute of Payroll Professionals, Goldfinger House, 245 Cranmore Boulevard, Shirley, Solihull, West Midlands, B90 4ZL. Switchboard 0121 712 1000

Copyright This magazine is published by The Chartered Institute of Payroll

Professionals in whom the copyright is vested. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of the publisher. The views expressed in this publication are not necessarily those of the CIPP or the editor. The information and comment contained in this publication are given in good faith, their accuracy or completeness cannot be guaranteed.

Jason Davenport MCIPP MIoD (jason.davenport@cipp.org.uk) Chief executive officer, CIPP

| Professional in Payroll, Pensions and Reward | September 2024 | Issue 103 2

Contents

Interested in writing for our magazine? Please support this magazine so that it can continue to be a part of your membership package. To get involved, contact Kavitha, at editor@cipp.org.uk.

SEPTEMBER 2024

Reading the magazine gives you one CPD point

REGULARS

FEATURES - THE JUGGLING ACT

01 Editor’s comment 02 CEO’s and chair’s message 04 CIPP update News and developments 05 My CIPP

Consultation update: real time information By the CIPP policy and research team Overpaid: what to do when mistakes are made By Samantha O’Sullivan

Fighting the rising tide By Edmund Paul and Lindsay Yon PSAs: why the deadlines can be confusing By Paras Shah and Caroline Harwood

16

18

22

20

online exclusive content

Events horizon, On your behalf, Spotlight on…, Advisory Q&As, Payroll Live, Payroll news, Climate change

Compliance: ticking the right boxes By Alex Gardner

RALC case overturned five years later By Justine Riccomini

26

24

15

Personal development BePayroll

16 Compliance

Managing payroll with precision, efficiency and care By Jakub Zmuda

Dealing with flexible working requests By Danny Done

Read all about the deadlines and penalties associated with pay as you earn settlement agreements and learn how to calculate overpayments when mistakes are made

28

37

online exclusive content

32 Feature topic

Tribunal outcomes By Nicola Mullineux

Unmasking the imposter phenomenon By Dr Sue Smith

Read all about the theme of the current issue – The Juggling Act – which offers insights into the balance needed to manage payroll effectively

38

42

37 Reward

A look at how to navigate imposter syndrome and how to stay motivated and organised in a busy world

Staying motivated and organised in a busy world By Charlotte Holdsworth

Mind over matter By Karen Beckett

46

44

52 54

online exclusive content

Technology Time and attendance: the role of payroll in managing overwork Pensions Advice on how to help staff understand and engage with their workplace pension

Skillful work By Paul Unwin

Payroll: let’s get strategic By Andrew McAulay

50

48

online exclusive content

online exclusive content

60 Hot topic

Now the UK has a new Prime Minister and government in place, what are implications of the Labour manifesto and King’s Speech for payroll?

The role of payroll in managing overwork By Simon Garrity

Show your pension some

54

52

attention By Mark Smith

62 Payroll pets

We say hello to some of your furry friends

3

| Professional in Payroll, Pensions and Reward |

Issue 103 | September 2024

CIPP UPDATE

update

CIPP team building IN JUNE, CIPP employees enjoyed a day of team building at Eventurous! With the morning spent reflecting on the past 12 months and discussing the future of the organisation, we then split into teams to enjoy ‘Crystal Maze’ style games. In our groups, we completed challenging tasks that tested our logic, skills and ability to work as a team. After completing all the games, the white team came out victorious, which included Zoe, Steven, Chevonne, Rachel, Emily, Ibukun, Rachel and Brendan. It was a fantastic day, enjoyed by all.

Sponsoring industry awards WE HAVE recently sponsored two industry awards: l Payroll Professional of the Year Award at the IAB awards hosted at the House of Commons, where Dr Sue Smith EdD MA Bed FHEA FCMI Cmgr Assoc CIPD ACIPP and Jill Smith ChMCIPPdip attended l Payroll Consultant of the Year Award at the Global Payroll Awards, which took place in Athens. Vickie Graham DipM FCIM ACIPP and Natasha Taylor ACIPP attended. We were proud to sponsor awards at such prestigious events and want to congratulate both winners on their immense achievements.

Tough Mudder IN JULY, Vickie Graham, Anna Oldfield and Natasha Taylor completed the gruelling Tough Mudder challenge, raising £1,200 for the Acorns Children’s Hospice. They climbed and crawled through many challenging obstacles, testing their strength, stamina and ability to work as a team, to complete the course.

Award win CIPP FREELANCE editor Kavitha Sivasubramaniam was named Pay, Reward and Employee Benefits Journalist of the Year at the WTW media awards in London. Now in its nineteenth year, the annual event celebrates excellence in business journalism, with categories covering insurance and risk, human resources and employee benefits, pensions, and investment journalism. Kavitha’s award-winning articles covered issues such as supporting staff through the cost-of-living crisis, employee assistance programmes and family friendly benefits.

| Professional in Payroll, Pensions and Reward | September 2024 | Issue 103 4

WANT TO DEVELOP YOUR SKILLS IN DIFFERENT PAYROLL AREAS AND SAVE UP TO £500? The US Payroll Practice Essentials, and Foundations of Payroll Analytics courses are coming to you in London in October. Provided in partnership with PayrollOrg, these CIPP-approved courses are designed to support your growth in payroll.

Event horizon Your guide to upcoming events and training

Full details of events and training courses can be found at cipp.org.uk/events or you can email info@cipp.org.uk for more information.

Last chance to register for National Payroll Week (NPW) 2024 webinars!

NPW is taking place from 2 to 6 September, and now’s your last chance to register for one of our free online events. We’ll be hosting a week’s worth of informative webinars to mark this year’s celebrations, which will include a selection of workshops and educational sessions delivered by the CIPP and our sponsors.

Training courses Take a look at some of IPPE’s upcoming training courses below. Those that are taking place face-to-face are highlighted in orange. Please note, there are additional dates, locations and training courses available. Please visit http://ow.ly/iVfT50MU7yr. The online sessions, which will run from 45 minutes to an hour, are being held to boost understanding and awareness of the payroll function and CIPP members and non-members will have the chance to attend our NPW webinars, free of charge. To book your place, visit: https://ow.ly/3uhm50RtowS. You’ll have the opportunity to join the CIPP policy and research team as they provide an update as to what’s going on in the world of payroll policy on 2 September. The following day, on 3 September, CIPP’s advisory team will run a question and answer session to help you navigate the complex problems you’re faced with. Other topics on the agenda are perspectives on workplace financial wellbeing, the importance of compliance, elevating your payroll skills and much more. Launched by the CIPP in 1998, NPW aims to highlight the hard work and dedication of payroll professionals across the country, as well as the opportunities presented by the industry. Over the years, it has become increasingly popular and is helping raise the profile of the profession and its processes.

US Payroll Essentials 7-9 OCTOBER | LONDON (3 DAYS) £1999 +VAT

Foundations of Payroll Analytics 10, 11, 14 OCTOBER | LONDON (3 DAYS) £1485 +VAT

BOOK TOGETHER TO GET A 20% DISCOUNT PLUS WE’LL APPLY THE MEMBERSHIP DISCOUNT - A SAVING OF NEARLY £500

COURSE

DATE

LOCATION

16 September

Online

Automatic enrolment and pensions for payroll

17 October

Online

11 September

Online

Provided in partnership with

Construction industry scheme

29 October

Online

Foundations of payroll analytics

10 October

London

18 September

Online

Holiday pay and leave

16 October

Online

16 September

Online

16 September

Birmingham

Find out more and secure your package discount by emailing enquiries@cipp.org.uk

Introduction to payroll

7 October

Online

15 October

London

20 September

Online

Off payroll working and other employment status considerations

30 October

Online

12 September

Manchester

25 September

Online

Scan for info

Payroll update

14 October

Online

25 October

Birmingham

A subsidiary of the Chartered Institute of Payroll Professionals

5

| Professional in Payroll, Pensions and Reward |

Issue 103 | September 2024

POLICY HUB

On your behalf

Learn more about what the CIPP’s policy and research team has been getting up to in recent months on behalf of you, our members, and the wider payroll profession Policy team update

F ollowing a quieter than usual time due to the pre-election period, activities are now returning to normal.

data quality, delivered by HMRC, which was a well-attended webinar with plenty of useful information and questions answered. Also in July, Mathew joined the panel on SD Worx’s monthly interactive webinar, ‘Payroll question time’. The webinar is an upbeat look into the current changes in the payroll world, a look at what’s ahead and invites delegates to a live question and answer session. Sam delivered a legislation update (or ‘leg up’ if you like) at the Hays online webinar, ‘Navigating the payroll labyrinth of compliance’.

Consultation and calls for evidence (CfE) updates Unsurprisingly, with the pre-election period, the election itself, a new government settling in and the Parliament summer recess, there have been no new consultations or CfE published. However, we are ready and waiting for the chance to contribute to those that are imminent and anything else the new government puts forward. You can view the policy and research team’s formal responses to consultations and CfE here: https://ow.ly/3Kav50QigsG.

Forums The policy and research team is pleased to return to business as usual with the return of the HM Revenue and Customs (HMRC) forums. Samantha O’Sullivan, policy and advisory lead, Mathew Akrigg, policy and research officer and Sarah Smith, policy and research officer, attended several forums between them over the summer, including: l Charter Stakeholder Group l HMRC Expert Panel l Guidance Strategy Forum l Approach to Intermediary Harm l One-to-Many Compliance Advisory Board l Employment Status and Intermediaries (IR35) l Accessible Payroll Giving l Construction Forum. The team sits on these forums to ensure our members’ feedback is provided at government level. We will always update you on our findings and information provided through these groups via Professional and News Online . If you have any issues you would like us to raise at any of the professional forums we sit on, please email the team: policy@ cipp.org.uk .

HMRC timeliness of response masterclass New recruits to HMRC’s investigator and compliance teams undergo a series of masterclass courses to bring them up to speed with various aspects of the role and what to expect. The CIPP was approached to take part in these masterclasses and help new starters understand what an investigation or audit is like from the other side – that of the payroll professional. We conveyed the key areas where an inspection can cause friction, how to overcome those issues and make dealing with HMRC a more positive experience. It is important for everyone to understand that each person involved is doing their job and to work as collaboratively as possible throughout. n

Events Events are warming up nicely. Is anyone else counting down the days until National Payroll Week and the CIPP’s Annual Conference and Exhibition? July saw the introduction of our first ever Payroll Live, held in Manchester, which we’re sure was the first of many. The event was extremely successful and enjoyable. Sarah delivered a session on the results of this year’s Payslip Statistics Survey , what it means for the profession and the action points for the policy and research team over the next year. Mathew facilitated the BeKnowledgeable on real time information

| Professional in Payroll, Pensions and Reward | September 2024 | Issue 103 6

MY CIPP

Tell us a little about your career and background so far? My career has been deeply rooted in operations and payroll for more than 27 years, from local authority to the CIPP. This has provided me with the foundations for managing complex processes and securing organisational efficiency. I began my career in payroll operations, developing skills in processing and compliance. Later, I grew into roles where the scope of responsibility widened. I began leading people, overseeing broader operation domains, while developing and encouraging a strong work ethic within my teams. My payroll operations knowledge meant I had an eye for detail and an understanding of what precision and reliability mean within this exciting profession. I progressed within the organisation to director of product development. The opportunity allows me to manage several key teams, including policy and research, advisory, material updates, training, and digital learning. The role leverages my operational background in a way that allows me to blend strategic vision with day-to-day management. My experience in payroll operations complement my leadership style, enforcing accuracy, timeliness, and constant process improvement. The unique mix of my skills and experience drives innovation and excellence across all teams, which in turn supports the success and future strategy of the Institute. What are your day-to-date duties at the CIPP? Although it’s important to have structure to my day, I strongly believe in remaining flexible for any unforeseen encounters. My team knows my door is always open for a discussion. Day-to-day activities at

the Institute vary from strategic planning and leadership of my team to operational management. I work with the policy and research team on industry trends to ensure policies are data-driven and current. I manage the creation of expert guidance by our advisory team, supporting the needs of our members effectively and responsibly. Our members are key to our business and delivering a professional service remains the highest priority. Working closely with the material updates team ensures training and qualification products remains current and relevant. Creation and delivery of outstanding training products to the training team, leading with innovation, design and the development of rich, compelling and accessible content in the digital learning team is a daily occurrence. Regular communication and collaboration with cross-departmental function heads, monitoring performance and fostering a culture of improvement is all part of everyday life at the Institute. What does your role mean to you? In an ever-evolving industry, there’s always something fresh and exciting to get involved in. Being part of the senior leadership team, I’m able to contribute to the strategic outline that affects the business moving forward. Empowering my teams to take on ownership to influence and develop these strategies is very satisfying. Seeing both the business and its personnel grow fills me with immense pride. Working alongside conscientious, committed people working together, educating our members, students, delegates and the industry means we make a difference. It’s a responsibility we don’t take lightly. I cherish the challenges the position brings and genuinely enjoy supporting and

guiding the teams to achieve their and the company objectives.

As product development director, and having multiple teams under your management, what do your teams add to the future strategy of the CIPP? I believe in the teams and can verify that they make a difference in future strategic direction by harnessing the power of all our individual and collective expertise and synergies. The policy and research team provides our members, and the wider industry, with topical changes to the profession. It does this by producing updates through the news pages of the website on changes you need to know about. The team uses its voice, along with our members, to shape the future of the profession, by pushing for change to government policies and changing legislation. The advisory team is tailored to give expert support to our members, drive their experience and build long-term partnerships. The material updates team supports us in keeping our resources and content current and relevant, and therefore has a direct impact on our levels of credibility and reliability. The training team enables us to have the most relevant, accurate, and up to date courses to support the whole payroll industry. Lastly, the digital learning team drives innovation in our educational offerings to make them more engaging and easily accessible, expanding our reach and impact. My teams work together, devising a unified, concerted and visionary strategy to put the Institute at the pinnacle of our sector, and providing a premium professional service to our members and the wider industry. n

7

| Professional in Payroll, Pensions and Reward |

Issue 103 | September 2024

MY CIPP

The CIPP’s Advisory Service team provides answers to popular questions

Long service awards Q: Our company gives a long-term service award of £1,000 for 40 years’ service. An employee who will be receiving this award would like goods worth £1,200, which we will purchase and pass on. Can we then request a payment from them of £200 (the amount we overpaid) with no tax or National Insurance (NI) implications? A: The legislation around this means long service awards can only be given for 20 or more years of service, and the permitted maximum award is £50 per year. The key thing to note here is that it can only be given as a ‘tangible moveable property’ – in plain English that means an object, such as a TV, a watch etc – or as shares in a company. Here are the links to the legislation and guidance: https://ow.ly/9AOx50Se22q and https:// ow.ly/iqq750Se4lC. Any monetary award you’re paying employees for long service should be made via the payroll as earnings, attracting a tax and NI liability. If you don’t wish employees to suffer the tax and NI, you may gross up that payment so the net they receive will be the true value of the award. Based on the above guidance, the employee could receive up to £2,000 in goods for their long service award. If you wish to give over the £1,000, you could do so without attracting a tax or NI liability. Covering these awards under a pay as you earn (PAYE) settlement agreement is another common approach.

paying staff weekly to monthly but doesn’t want employees to miss out on pay. Can we do so but pay some of the net pay halfway through the month? A: Yes, what you’ve set out seems perfectly reasonable and is often the way employers do this in a transition period. The mid-month payment would be seen as an ‘advance’ of wages, so whatever is paid to employees at that point would be deducted from them net and shown as an advance in the first monthly payslip.

contract between your company and the voucher provider.

Sickness and bank holidays Q: If an employee is off sick, do we still need to pay the statutory bank holidays as holiday pay at the same time as statutory sick pay (SSP)? A: Firstly, what does the employment contract or sickness policy state in this situation? We can only offer the legislation on this guidance, which is not definitive. As a general rule, an employee cannot be off sick and in receipt of holiday pay. Sickness supersedes holidays, so the bank holidays during periods of sickness should not reduce the employee’s overall holiday entitlement. All employees are entitled to 28 days of leave. If they are unable to take this entitlement, they must be allowed to carry statutory leave forward if they are on long- term sickness. ACAS states SSP can be paused so holiday can be paid but HMRC states the SSP period of incapacity for work (PIW) continues while they take leave. This must be a company decision. HMRC could be followed whereby the employee is still off sick on their PIW, but they can also receive top up to full pay while off on SSP. For more, see: https://ow.ly/ TQVB50Se5ng and https:// ow.ly/8CVQ50Se5qQ. Backdating new starters Q: If a new starter joins towards the end of March after the cutoff date, how should tax be calculated? Should it be based on if the pay was earned in March? Or should the backpay be taxed as though it is considered part of April pay was because this was paid and backdated in April? The employee querying this has come across this guidance which has led them to believe they have been incorrectly taxed: https://ow.ly/kb7B50Se98A. A: It is quite normal for new starters who start part-way through the year to be paid in

Can a refund on childcare vouchers be processed as a payment after leaving?

Refund of childcare vouchers Q: We need to refund a childcare voucher salary sacrifice amount through the payroll for someone who left in 2020. We would normally process such payments as a payment after leaving but is there a limit on the length of time after leaving that we should do this? A: Yes, a payment after leaving can be made. HM Revenue and Customs (HMRC) guidance states childcare vouchers can be refunded but tax and NI contributions (NICs) must be deducted. If the childcare vouchers relate to a previous tax year the refund would still be made in the current year, as tax and NI is due when the payment is made available to the employee. This applies to both current and former staff. The relevant guidance can be found here: https://ow.ly/ EYba50Se4Q8. You need to deduct PAYE tax and NICs before making the refund to employees. This applies to both current and former staff. If your company no longer exists, the voucher provider may refund the employee directly. This will depend on the

Can we recoup a long service overpayment without any tax or NI liabilities?

Change to pay period Q: A client wants to transition from

| Professional in Payroll, Pensions and Reward | September 2024 | Issue 103 8

AUTUMN 2024 ENROLMENTS OPEN

POLICY HUB

Ready for a managerial role?

to his shortened preferred name, should be viewed on his P60 document. Which would be correct, and does HMRC hold a preferred name section in its system? A: For the purposes of official documents, HMRC requires the person’s legal name to be used. In the FPS developer guide, HMRC states that the full name should be given, as opposed to preferred or shortened names (data item 7). See https://ow.ly/ B0pW50SebLk.

the following month if they have missed the payroll cutoff, and generally tax and NI are due on payments when they are made to employees. If you haven’t made a mistake and this is just the normal course of payroll processing and how the wages are paid, you wouldn’t need to make any amendments. If the employee disagrees you could point them to HMRC. If HMRC says the tax should be added to the previous tax year they will quite possibly point the employee back to the employer to correct on their records. You cannot apply NI back to a previous tax year though, as this must be allocated at the time the payment was made. There is guidance for this in the CWG2, see section 3.1.5: https://ow.ly/wVxB50Se9tg.

FdSc PAYROLL MANAGEMENT (UK PAYROLL) Delivered by the prestigious University of Lincoln, this new university-accredited qualification is entirely online, meaning you don’t have to move from the comfort of your home or office.

Should legal names be used on official documents?

Pensions when on maternity Q: I have recently taken over a payroll and a couple of employees are receiving SMP. Until now they have based their pensions contributions on the standard 5% / 3% split. Is there any instance where an employer doesn’t have to contribute the same as the salary pre-SMP? A: If the scheme is Relief at Source (RAS) the employee pays theirs and the employer pays theirs, and the same for the Net Pay Arrangement (NPA) scheme. But if the pension scheme is a salary sacrifice one then it’s slightly different. With a salary sacrifice arrangement for pension, the employee has given up pay in a written agreement for a higher employer contribution. This means there are no employees’ pension contributions, it’s all employers (8%). You can only take the salary sacrifice from salary or ordinary maternity pay, you can’t deduct it from SMP. If they are only receiving SMP and no company maternity pay, you can’t take any of the salary sacrifice from the employee, but the employer must still pay over the 8%. This is because it is all employer contributions and is based on as if the employee is working and earning normally, not on the pay they are receiving. To confirm that if the scheme was RAS or NPA, the employer contribution is always based on the employee’s salary pre maternity leave as if working and earning normally and the employee is on what she receives. n

Delivered and awarded by

How should tax be calculated for new starters when pay is backdated?

Paternity leave evidence Q: I’m getting a lot of conflicting

information from different sources in respect of statutory paternity pay (SPP). I have two employees wanting to claim SPP, but they don’t have a MATB1 certificate. They do have medical certificates from hospitals that the mothers have been to in India. As far as I was aware, the MATB1 certificate is required. Can you advise what can be used in place of a MATB1, if anything? A: There is no requirement for an employee to provide an employer with a MATB1 certificate when requesting statutory paternity leave and / or SPP. They can complete the online form which has replaced the SC3, which can be found here: https://ow.ly/KWiI50SCtrx. If the employee is having a baby through a surrogacy arrangement, they can use form SC4. Here’s a link to the relevant information: https://ow.ly/HcZs50SeaMO. The Statutory Payment manual for further reading can also be found here: https:// ow.ly/XzrN50SeaPx. Name on RTI files Q: I recently had an employee query whether his full legal name, as opposed

For more details, scan the QR code or visit ippe.org.uk/FDSC

Scan to book

A subsidiary of the Chartered Institute of Payroll Professionals

9

| Professional in Payroll, Pensions and Reward |

Issue 103 | September 2024

MY CIPP

PAYROLL LIVE

This summer, payroll professionals from across the country attended the CIPP’s first Payroll Live event in Manchester. Kavitha Sivasubramaniam, CIPP editor , summarises the sessions and shares highlights from the day

I n July, the CIPP welcomed hundreds of delegates to our first Payroll Live event at Manchester Central, which gave people at all stages of their payroll careers – from payroll newbies to seasoned professionals – the chance to benefit from insightful, expert-led sessions to enhance their skills and knowledge and meet industry suppliers.

Dr Sue Smith EdD MA BEd FHEA FCMI Cmgr Assoc CIPD ACIPP, CIPP education director and Joanne Leather MCIPPdip, IPP Education education manager, then led a session entitled ‘Your payroll career’, highlighting the careers on offer within payroll and the opportunities available to help people gain payroll qualifications. They also explained the business benefits and importance of investing in payroll, stressing the impact of getting the process wrong in terms of morale, costly business fines, potential criminal convictions and naming and shaming.

Julie Northover ChFCIPPdip, CIPP payroll compliance advisor, talked delegates through best practice in payroll processes, providing details of the CIPP Payroll Assurance Scheme (PAS), which is the only accreditation that endorses compliant processes and commendable people development processes. She also outlined some common failings, including apportionment rules (contractual compliance), pension scheme set ups (statutory compliance), pension contributions during child-related absences (statutory compliance) and holiday pay calculations (statutory and contractual compliance).

Opening the day-long show, CIPP CEO Jason Davenport MCIPP MIoD said, “This type of event is designed to be multi- faceted – an opportunity for learning, and an opportunity to expand your horizons, as well as an opportunity to network and meet with new people and hear their stories.” He shared details of his personal payroll journey with delegates before concluding that “every day is a school day” and encouraging delegates to get the most out of the event.

Next to the stage were Tanya Gosling, principal project manager from Dayforce, our headline sponsor, and Ian Hinchley, payroll manager from the Milestone Trust, who discussed ‘Rethinking payday – recruit, retain and do right by your people’. Their presentation acknowledged the way people are paid needs to change to keep up with the times and the growing demand from today’s workforces, identifying a need to access their pay when it’s earned. They argued that employers could support their employees’ financial wellness by implementing on-demand pay options.

‘Your 100-year life’ was the topic of the day for Stefan Lundbergh, head of innovation at Cardano. He explained that while many are enthused by increasing life expectancy and the possibility of living to 100, this poses several serious

| Professional in Payroll, Pensions and Reward | September 2024 | Issue 103 10

MY CIPP

considerations for governments, society and individuals. The consequences include extra pressure on the welfare system, employers competing in smaller labour markets and retirement pots needing to last longer. Stefan concluded that radical thinking – and action – is required globally.

offering advice on how to navigate the complex maze of rules, regulations and investigations. She covered the confusing areas; the current rules and what employers and payroll professionals can expect in the future.

parental leave and pay’, offering a refresher of statutory pay rules, as well as details of changes to paternity leave and pay, paternity bereavement and neonatal leave and pay.

A presentation on ‘Changing payroll systems – what to consider’ was delivered by Malc Coton, head of sales at Phase 3. He looked at how to identify the best time to change payroll system, how to choose a system and the impact of poor implementation.

Next up, Sarah Smith MCIPPdip, CIPP policy and research officer, discussed the key findings from the CIPP’s Payslip Statistics Report 2024 , which once again sheds light on a number of pertinent payroll issues. For example, and perhaps unsurprisingly, the survey showed monthly pay is still the most common pay frequency, with a huge majority (97%) of survey respondents paying this way, while Friday is still the most common payday for weekly, fortnightly and monthly payrolls. Additionally, Bacs payments continue to dominate payments for payroll and 58% don’t use any tools to help employees understand their payslips.

Last but not least, Clare Warrington MSc FCIPPdip AFHEA, CIPP chair, thanked everyone for attending the first Payroll Live, including the sponsors and exhibitors. She reminded people how important networking and attending these events is for continuing professional development and knowledge sharing. She highlighted that National Payroll Week is taking place this month (September), followed by Annual Conference and Exhibition in October. In her closing address, she also recapped the key takeaways from the day and remarked on the success of the inaugural Payroll Live event and how the CIPP looks forward to welcoming delegates to the event in the future. n

Julie Northover ChFCIPPdip, CIPP payroll compliance advisor, then led her second session of the day on new holiday pay regulations. This included: l why the changes were made l when the changes take effect l what the changes are l unlawful deduction implications l carrying over leave from one leave year to another.

Natasha Taylor ACIPP, consultancy relationship lead, talked about the importance of compliance, looking into why it is so important within payroll, the risks when it goes wrong and common themes. She also explained how to carry out a pay as you earn health check within your organisation and the benefits of doing so.

Towards the end of the day Dawn Baxter MCMI ACIPP, CIPP membership manager, ran an interactive session, polling delegates on their needs and membership status. She then explained how a CIPP membership could benefit and support delegates in their payroll careers, detailing the membership grades and benefits. Bitesize training from Fiona Smith MCIPPdip, payroll training manager, IPP Education, covered ‘Changes to statutory

Jeni Morris, head of the national minimum wage (NMW) specialist team at EY, explored the pitfalls of the NMW,

11

| Professional in Payroll, Pensions and Reward |

Issue 103 | September 2024

# 1 RECRUITMENT AGENCY ON

Based o

www. portfoliopayroll .com

Secure exceptional payroll talent with the largest and longest established payroll recruitment agency in the UK.

• Our clients benefit from access to our extensive candidate network UK & global talented payroll professionals at all levels of the market • Supporting SMEs, FTSE 500 & global entities with one-off vacancies to on-going consultancy for building your recruitment strategy & succession planning

• Tailored Executive search solutions from permanent Senior Management & Director level appointments to interim assignments for payroll Consultancy & software implementation projects • Benchmarking services on salaries & benefits plus sector trends through our industry-leading Payroll Salary survey - providing insightful market intelligence to aid your recruitment & retention strategy

Secure exceptional talent in the market right now by contacting one of our specialist Recruitment Consultants today.

LONDON 020 7247 9455 1 FINSBURY SQUARE, 3 RD FLOOR, LONDON EC2A 1AE MANCHESTER 0161 523 5585 THE PENINSULA, VICTORIA PLACE, MANCHESTER M4 4FB

www. portfoliopayroll .com recruitment@ portfoliopayroll .com

MY CIPP

PAYROLL news

New government sets budget date RACHEL REEVES has revealed that this year’s next budget announcement will take place on 30 October 2024.

“Genuine living wage” expected as LPC’s remit overhauled The remit of the Low Pay Commission (LPC) has been updated in a move towards the government’s aim to “make work pay”. In a statement to Parliament, business secretary Jonathan Reynolds explained the revised remit had been set out in writing to LPC chair Baroness Stroud. The aim of the overhaul is to ensure the independent body considers the true cost of living when making minimum wage recommendations in the future. The government’s “commitment to a genuine living wage” includes: l taking the first step to deliver on the promise of a genuine living wage for working people l overhauling the LPC’s remit to factor in the cost of living when recommending minimum wage rates l removing discriminatory age bands so that all adults can benefit as work gets underway on the plan to make work pay. The LPC has been asked to report its recommendation for the next rate change by the The new chancellor confirmed the date in an address to the House of Commons on 29 July, during which she also set out plans aimed at plugging the gap in public finances. Back in February 2024, the Labour party implied that, if elected, it would hold one single budget annually at the end of November each year. However, it also noted that an autumn budget may not be practical this year, depending on the timing of the general election. Prior to the announcement, the Labour Party’s 2024 budget was widely predicted to take place in mid-late September when considering all relevant factors, such as the involvement of the Office of Budget Responsibility and Parliament’s summer recess.

end of October 2024 for the April 2025 increase. This may be to coincide with the budget we now know will take place at the end of October. View the full statement on the LPC remit made by Jonathan Reynolds to Parliament on 30 July 2024 here: https://ow.ly/JPpj50SOU1s.

Diary dates

2-6 September

National Payroll Week

5 September

Last day of tax month 5

First day of tax month 6

6 September

Last day for submitting a real time information employer payment summary to apply to tax month 5 Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by non-electronic method

19 September

22 September (this is a weekend date)

Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by electronic method

5 October 6 October

Last day of tax month 6 Last day of tax month 7

13

| Professional in Payroll, Pensions and Reward |

Issue 103 | September 2024

MY CIPP

Organic September: food for thought?

Laura Bate ACIPP, CIPP quality, environmental, safety and health executive, highlights the perils of pesticides and shares a number of cost-effective ideas on how to start your organic journey to help yourself and the planet

M any of our crops are grown using fertiliser, but the use of fossil fuel-based nitrogen fertiliser adds to the earth’s carbon emissions. More sustainable fertiliser comes from animal manure and using natural predators, such as ladybirds, can also control pests. Other pests can include aphids and locusts. When crops are rotated this allows soil to recover. So, now’s probably a good time to consider how healthy your five-a-day really is. Completely converting to organic produce can be expensive, but here are some tips which may help you start your organic journey: l buy locally, for example, pick up organic fresh fruit and vegetables from your local farmers’ market l try to grow some of your own fruit and vegetables l buy seasonal, as buying out of season can be expensive l wear organic clothing – clothes that aren’t made from conventionally grown crops l choose organic beauty products that are free from genetically modified organisms, herbicides and synthetic fertilisers. The ‘Clean Fifteen’? The Clean Fifteen is the Environmental Working Group’s list of 15 items with the least pesticide residues, according to its analysis of data from the United States Department of Agriculture. Trying to stick to these may help if converting to all organic produce is not an option. A good start would be to fill your fridge with fruits and vegetables which are conventional and contain a lower level of pesticides. Produce with a thicker peel, such as avocados, are more effective at keeping out pesticides.

The top five fruit and vegetables in the Clean Fifteen are:

pesticide residues are known as ‘pesticide cocktails’.

l avocados l sweetcorn l pineapple

The pesticide cocktail effect A mixture of pesticides can appear in food, water and soil, and can be very dangerous to humans and wildlife. There are millions of different combinations, which may vary in different concentrations. Due to the vast amount and impossible way of managing these on a case-by-case analysis, it’s advisable to minimise the risk to health and the environment by decreasing the overall use of pesticides which, in turn, is reducing our exposure to pesticide cocktails. Due to the continuous nature of monitoring risk levels of food produce, it’s probably safer to consume organic, although the consumption of non-organic produce may still have pesticide residue. With regular checks via the HSE, anything which is detrimental to human health should be removed under legislation. Institute update We are spreading awareness throughout internal and external communications in relation to our climate stance by ensuring employees are educated about best practice. We have introduced ‘Animal of the Month’ whereby the CIPP’s green team writes about a certain animal to raise awareness of the importance of protecting our wildlife. n

l onions l papaya.

Fruit and vegetables which are non- organic are sprayed with pesticides. Even after washing and scrubbing them they may still contain pesticides as they penetrate through the peel. Types of fruit and vegetables with a high percentage of pesticides include: l strawberries l spinach l kale l grapes l peaches. The measurements in place The Health and Safety Executive (HSE) administers a food monitoring programme by conducting risk assessments. This is to identify the levels of residue which have been found in produce and the likelihood of it impacting human health, what to do if certain food has reached maximum residue levels and what actions and control measures need to occur. The HSE also communicates with suppliers and food producers and that communication often drives positive impact work for the supply chain. The Pesticide Action Network UK (PAN) charity analyses the results from the UK’s residue testing programme and publishes the ‘Dirty Dozen’ list, which includes fruit and vegetables most likely to be contaminated. This could be with multiple pesticides, and the produce with multiple

Links corner https://ow.ly/y3e850SvaCQ https://ow.ly/ZL6V50SvaFE https://ow.ly/AfY450SvaHq https://ow.ly/FunL50SvaIF https://ow.ly/1s8950SvaKl

| Professional in Payroll, Pensions and Reward | September 2024 | Issue 103 14

Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40 Page 41 Page 42 Page 43 Page 44 Page 45 Page 46 Page 47 Page 48 Page 49 Page 50 Page 51 Page 52 Page 53 Page 54 Page 55 Page 56 Page 57 Page 58 Page 59 Page 60 Page 61 Page 62 Page 63 Page 64 Page 65 Page 66

Made with FlippingBook - Online magazine maker