Official publication of The Chartered Institute of Payroll Professionals
The ease of learning and assessment in Payroll, Pensions & Reward
Issue 43 September 2018
The future of learning Your development destiny
Lifelong learning Knowledge and opportunity
A matter of degrees Postgraduate loans
CIPP update | Policy hub | Career development
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Editor’s comment
In this issue you’ll find a new regular page ‘Movers and shakers’ in the career development insight section (previously called professional development insight) which features recent appointments in the industry (page 15). Please send details of any
chosen industry and career is the acquisition, maintenance and enhancement of knowledge and skills. There are several informative and instructive articles in this issue covering the importance of learning and development, which coincide with and complement the feature topic discussing from various viewpoints the advances in and the benefits of e-learning and e-assessment (pages 35–42). If you seek inspiration to pursue career development, the articles on pages 12,13 and 14 are essential reading.
promotions and new appointments to editor@cipp.org.uk . The launch of the new page reflects developments that suggest there is increasing demand across the UK for skilled payroll professionals. On page 11, you’ll find some key findings from research which reveals that amongst other things payroll professionals and their employers need to invest in skills development. Absolutely essential for all professionals whatever their
Mike Nicholas MCIPP AMBCS Editor
Chair’s message
It was earlier in the year when I became chair of the local Lincolnshire County Amateur Operatic and Dramatic Society. The cast are putting the finishing touches to our production of The King and I which will run at the New Theatre Royal, Lincoln for
undertaking qualifications, or attending events like our Annual Conference and Exhibition, the better we get at what we do. The more time we devote to ‘rehearsing’ or ‘learning’, the more opportunities we are likely to get in the future. My cast this year all started somewhere, probably in the ensemble or at the back of the stage, but some are now in leading roles. I’m still learning, having achieved my Chartered membership earlier this year. Since then I’ve worked on US payroll for the first time and travelled globally, meeting payroll professionals from around the world. I have no idea what will be next for me, but continuous learning will be primary in whatever I do. Where will your learning take you in the future?
six shows from 25 September. I was lucky enough to fit in a visit to the West End production when I was in London to lead one of our national forums during the summer and I’m very excited to see how our team shape up. It’s amazing to see how much difference it makes when the cast and production team put so much time and effort into rehearsing. It can be a bit chaotic as people find their feet and get themselves into character, but as they develop, and learn about the story and the music, the whole show gets better and better. It’s a bit like our own personal development: the more time we spend learning, whether it’s reading Professional in Payroll, Pensions and Reward or News On Line , attending training courses,
Eira Hammond ChFCIPPdip Chair, CIPP
In the ongoing cycle of payroll and pensions, I hope you all managed to take time out for a summer break. That may be a distant memory as we now start to enter the autumn; but it’s a crucial time in terms of CEO’s message
professionalism, passion and immense experience of our tutors are the bedrock of our Foundation Degree qualifications and it was a great weekend, with close to a 100 in attendance. Make sure you enrol to see the huge benefit it will bring to both your career and your organisation. Hopefully you are prepared for National Payroll Week, which gives you the chance to demonstrate the importance of payroll within your business. If you didn’t request your NPW pack there are downloads available to help you celebrate on our website. Our annual Scottish National Conference occurs during NPW in September, with our Annual Conference and Exhibition taking place in October. I hope to see you at one of these events.
education and training in the CIPP calendar. Our Payroll Technician Certificate goes from strength to
strength (online and face to face) and continues to provide a firm introduction to payroll, as well as acting as a refresher to those who have perhaps taken time out. Equally of value, and reflected in the increased numbers applying, is our online Certificate in Pensions Administration. The more I meet and network with industry leaders, the CIPP message of ensuring staff are suitably skilled and educated continues to be our mantra. It’s also the time of the year for enrolling onto our Foundation Degree courses, in both payroll and pensions. In line with this, I recently attended our ‘weekend school’ for our CIPP tutors. The
Ken Pullar FCIPP Chief executive officer, CIPP
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| Professional in Payroll, Pensions and Reward |
Issue 43 | September 2018
in Payroll, Pensions & Reward PROFESSI NAL
Also available online at payrollpensionsandreward.org.uk
Contents
September 2018
41
Demise of the pension dashboard
Henry Tapper provides an update on developments
Features
14
24
13
Lifelong learning Elaine Gibson discusses why it’s essential
The way forward Helen Livesey sets out how to drive forward your development
Basic SSP procedures Jill Smith covers the administrative basics
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36
26
Disability, agency worker, right to work Nicola Mullineux reviews decisions in three cases
‘IR35’ – whatever next? Justine Riccomini considers the debate and feedback
A matter of degrees Neil Tonks discloses details of postgraduate student loans
| Professional in Payroll, Pensions and Reward | Septemer 2018 | Issue 43 2
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Editor Mike Nicholas 01273 412 836 | editor@cipp.org.uk Advertising Jill Bonehill 0121 712 1033 | advertising@cipp.org.uk Design James Bartlett and Nicole Gumery design@cipp.org.uk Printing Warwick Printing Company Ltd
Helping employees avoid pension scams Steve Butler provides advice
Avoiding naming and shaming Danny Done explains HMRC activity
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Chief executive officer Ken Pullar FCIPP CIPP board of directors
Improving engagement and productivity Andrew Weir talks about why employers are adopting e-learning
The ease of learning and assessment Dr Sue Smith discusses growth and application
Jason Davenport ACIPP Suzanne Gallagher MCIPP Stuart Hall MCIPPdip Eira Hammond ChFCIPPdip Ros Hendren MSc FCIPP, Mgr, FCMIdip, FHEA Lizabeth Lay MSc FCIPPdip Karen Thomson MSc ChFCIPP, FHEA Cliff Vidgeon FCIPP Ian Whyteside MCIPP, FMAAT, ATT
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Useful contacts Membership membership@cipp.org.uk 0121 712 1073 Education education@cipp.org.uk 0121 712 1023 Training admin@cipp.org.uk 0121 712 1063 Events events@cipp.org.uk 0121 712 1013 Marketing and sales marketing@cipp.org.uk 0121 712 1033 General enquiries
The future of learning Julie Lock sets out advantages of e-learning over traditional method
Evolution / revolution Jerome Smail explores the evolving e-learning and e-assessment revolution
Regulars
01 Editor’s comment, and Chair’s and CEO’s message 04 Membership insight On your behalf, Advisory, Five minutes with, CIPP national forum 11 CIPP update 12 Career development
24 Payroll insight 36 Reward insight 40 Pensions insight 42 Industry news 43 Feature articles
Events, news and developments
info@cipp.org.uk 0121 712 1000
cipp.org.uk @cipp_uk
Articles Please support this magazine so that it can continue to be a part of your membership package. 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 2018. The Chartered Institute of Payroll Professionals, CIPP, Goldfinger House, 245 Cranmore Boulevard, Shirley, Solihull, West Midlands, B90 4ZL. Switchboard 0121 712 1000 Fax 0121 712 1001 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 retreival 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.
Diary of a student, Movers and shakers, Alison Sellar OBE, Tutor training event, CPD
E-learning and e-assessment 56 Confessions of a payroll manager Additional online content 8 CIPP national forum 16 Tutor training event, CPD 20 Learning and development 28 Mutuality of obligation 31 Payroll - businesses’ secret weapon
21 Events Horizon 23 Payroll news
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| Professional in Payroll, Pensions and Reward |
Issue 43 | September 2018
MEMBERSHIP INSIGHT
On your behalf Policy team update
Diana Bruce MCIPPdip, CIPP senior policy liaison officer, provides an update
The right to request flexible working The prime minister, the Women and Equalities Committee and the Work and Pensions Committee have all recommended that the right to request flexible working should exist from the first day of employment. Many organisations, including Carers UK, Age UK and the Young Women’s Trust, have also made this call. Currently employees have the right to request flexible working once they have 26 weeks of continuous employment. We ran a quick poll, asking: ‘Do you support the recommendation that the Flexible Working Regulations 2014 (‘the Regulations’) be amended to ensure the right to request flexible working exists from the first day of employment?’ Of the 314 responses: ● 64% said they are in favour of this change; 22% of whom said it should happen regardless of industry sector, with the rest saying it should happen but only if the type of industry can accommodate it ● 30% of respondents voted no, and ● the remaining 6% were undecided. The government had already announced that it intends to review the Regulations in 2019 with a view to making any changes for 2020–21. Flexible working is one of the government’s key initiatives to help end gender discrimination in the workplace and reduce the gender pay gap. Minimum wage tick box Though there is a strong suite of policies aimed at discouraging employers from flouting minimum wage law, including fines, naming and prosecutions, the
Low Pay Commission’s (LPC’s) report on Non-compliance and enforcement of the national minimum wage: September 2017 (https://bit.ly/2mr7Zrz) recommended that more could be done to maximise their deterrent effect. Recommendations included the following. ...adding a ‘tick box’ declaration to payroll software... ● Government looks to increase the number of prosecutions and publicise those that take place. ● Government takes further action to publicise the increase in enforcement activity as part its communications campaigns. ● HM Revenue & Customs (HMRC) establishes information systems that allow government to learn as much as possible about the nature and extent of non- compliance from the cases it investigates. These information systems should provide enough information to monitor how well policy is responding to the challenge overall as well as to specific groups and issues. ● HMRC expands and formalises its work across government to both gather and share intelligence and take action on non- compliance where this is found to deliver results. ● HMRC should maximise the intelligence gathered through the new apprenticeship funding system in England to reduce non- compliance amongst apprentices.
An additional recommendation was the idea of adding a ‘tick box’ declaration to payroll software whereby the employer confirms that all of their staff are paid at the correct level. The LPC think this could be a helpful ‘nudge’ to encourage compliance and recommended that government investigates the potential of this change. At a recent meeting of professionals, representing all areas of the payroll profession, who had gathered to discuss the implications of the impending changes to the Employment Rights Act 1996 (ERA 1996) to ensure hours are shown on payslips where a worker’s pay is based on time work as well as extending the right to be issued with a payslip to all workers, this ‘declaration’ recommendation was also discussed. Overwhelmingly the ‘tick box’ was frowned upon and questions and comments flowed: ● A tick box in full payment submission returns declaring compliance is not practical because the earnings period may differ from the period on the payslip. ● The real time information system holding hours and pay information can only work when the submission relates to the earnings period and pay period. ● A correction period would need to be allowed for as the declaration could not cover any future activity. ● Who would be responsible for completing this and what would the penalties be for getting it wrong? We ran a really quick poll (two days’ duration, in July) to gather opinion and received just over 100 responses: 42% did not agree that the declaration could
| Professional in Payroll, Pensions and Reward | September 2018 | Issue 43 4
Policy hub
be helpful to encourage compliance (simulating opinion within the ERA meeting); 39% of respondents agreed it could be helpful; and the remaining 19% were undecided. Statutory Payments Consultation Group Another of our quick polls was used to help inform discussion within the Statutory Payments Consultation Group (SPCG), around the introduction of a flexible system of statutory sick pay (SSP). We asked if the lower earnings limit (LEL) were removed, so that employees earning either below the LEL or between the LEL and the rate of SSP were eligible for SSP, would changes need to be made to payroll systems? This poll, which ran for three weeks in June/ July, received 322 responses: ● 43% said minor changes would be required ● 27% said major changes would be required ● 11% said that no changes would be required for their payroll systems, and ● the remaining 19% were unsure. Consultation is expected later this year on the introduction of a flexible system of SSP. The SPCG is HMRC’s principal employer consultation group on the full range of statutory payments issues, providing the opportunity: ● for HMRC to explain and explore practical implications for employers, payroll bureaux and payroll software developers of potential changes in statutory payments (legislative and operational) ● for employers, payroll bureaux and payroll software developers to raise and discuss issues or problems in administering statutory payments. The group normally meets every two months so please email us at policy@org.uk if you have any issues you would like us to raise on your behalf. Payroll loan schemes We were prompted to run a quick poll when it was highlighted that UK workers could save more than £250 million a year in interest rate charges if companies introduced a payroll loan scheme like the Co-op (https://coop.uk/2LkTljI). It is estimated that around 300,000 people a month take out high-cost short-term credit. At the end of 2016, 1.6 million people
had high-cost credit debt, with the average loan just over £300. Around one in eight of the borrowers were in arrears, according to the Financial Conduct Authority (https:// bit.ly/2L9sFD4). If that interest was only 7.9% APR instead of the current capped high-cost credit loan rate of £24 per £100 borrowed for thirty days, UK workers could save a total of £252 million per year. We asked through a quick poll: ‘As an employer/business owner would you consider offering employees/workers a payroll loan scheme to enable them to repay loans direct through their salaries?’ Though this poll had been running only for a few days at the time of writing responses showed that while 19% of respondents already offer a scheme, encouragingly a further 32% would consider doing so. ...around 300,000 people a month take out high-cost short-term credit However, 27% said they would not consider offering such a scheme, and the remaining 14% were not sure. There could be a number of reasons for these particular responses, (e.g. lack of resource to administer, not knowing what is involved). If you are considering offering a payroll loan scheme like the Co-op’s to your employees, HMRC provides technical guidance on employer provided loans here: https://bit.ly/2uAQIR3. Little Bacs Guide to Maintaining Accurate Payment Details We are pleased that Bacs has produced The Little Bacs Guide to maintaining accurate payment details (https://bit. ly/2LpjrSK), which will help operational payroll and human resources teams address some of the perceived barriers in updating records, identifying key personnel to communicate to and help recognise common areas where processes may break down. The content of the guide, which has been produced in collaboration with payroll professionals, payroll software providers, service users and the CIPP, has specific focus on processing and acting on AWACS (advice of wrong account for credit service). n
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Issue 43 | September 2018
| Professional in Payroll, Pensions and Reward |
MEMBERSHIP INSIGHT
settlement agreement would not attract these deductions, and dependant on the ex gratia payment being subject to NICs or not, this factor will determine whether they should be considered for them. Q: We have an employee who currently earns an annual salary of £22,000 per year and also has a plan 2 student loan in place. So far this year their gross pay does not reach the annual earnings threshold so no student loan deductions have been taken. However, in their June 18 pay they received a £1,000 bonus which increased gross pay, so a deduction occurred. If their gross pay to date does not reach the £25,000 threshold by the end of the tax year, should I refund this deduction? A: Firstly, remember student loan deductions are based on a monthly or weekly threshold when you run the payroll each month, so yes student loans deductions will have to be taken by the employer and paid over to HMRC accordingly if the employee’s pay reaches the monthly threshold in any single month. If at the end of the tax year 2018–19 the employee’s annual salary plus bonus (gross taxable pay to date) falls below the annual threshold they can simply apply to the Student Loan Company (SLC) for a refund but you the employer would not refund any deductions. Unfortunately, the SLC and HMRC currently only reconcile student loan deductions on an annual basis, so the employee will not be able to apply to get a refund until at least May or June 2019. Q: Currently we pay shift premiums one month in arrears, so any shift premiums worked in March would be paid in April which is where we would take the ‘ordinary pay figure’ from for the purposes of gender pay gap (GPG) reporting as this includes the snapshot date of 5 April. What is defined as ‘ordinary pay’ in
Advisory Service is available 9a.m. to 5p.m. Mondays to Thursdays, and 9a.m. to 4.30p.m. on Fridays * . Call 0121 712 1099 , email advisory.service@cipp.org.uk or visit cipp.org.uk to live chat.
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Q: I am being challenged by a colleague regarding childcare vouchers and the basic assessment that we are required to carry out each year. Please can you advise why we do this? A: The law changed on 6 April 2011 so that any new entrants to the employer supported childcare voucher scheme must be assessed annually. The employer is required to carry out the basic earnings assessment to establish which type of tax payer the employee is. From that the employer will know how many childcare vouchers (CCV) they can give the employee tax and National Insurance (NI) free. The aim is that all types of tax payers should receive the same amount of tax relief on the CCV. Without there being a liability to tax or class 1 National Insurance contributions (NICs): basic rate tax payers can receive a maximum £55.00 per week worth of CCVs; higher rate tax payers can only receive a maximum of £28.00 per week of CCVs; and additional rate tax payers can receive a maximum of £25.00 per week of CCVs. If the employer provides more than these values the difference must be reported in a P11D return for tax and NICs deducted through the payroll. The government has provided guidance regarding the way the employer should carry out the assessment at this link: https://bit.ly/2v5UHET. Q: A new employee joined the company recently, and the date on the P45 form provided is October 2017 with a tax code of 0T month/week 1.
Do I apply the 24-May rule to the code, so that 1185L month/week 1 is applied instead of the 0T code? A: Whether the employee joined the company before or after the 24 May does not apply here. Because the tax code on the P45 is 0T, this means it supercedes the rule and you will have to use the tax code on the P45 form. HMRC provide a calculator to work out which code to use for a new employee which can be found at https://bit.ly/2A7se7c. If you follow the questions asked you will be guided to use the code from the form P45. The employee should contact HM Revenue & Customs (HMRC) to request they sort out the correct tax code for them. Q: What earnings should be considered when calculating student loan deductions? I have some employees who will either be getting a settlement agreement or an ex gratia payment; are these kinds of payments included for student loan deductions? A: All earnings which are subject to class 1 NICs will be considered for the student loan deductions. Hence, I can confirm a
| Professional in Payroll, Pensions and Reward | September 2018 | Issue 43 6
Policy hub
regard to GPG reporting? A: The definition includes the following elements: ● basic pay ● allowances including payments for duties that are ‘ancillary’ to the employee’s main duties, such as for the role of fire warden, the employment’s location, the purchase, lease or maintenance of a vehicle or other item, recruitment or retention of the employee ● pay for piecework, means pay for work that is calculated by reference to the number of pieces made or processed, or tasks performed, rather than the number of hours worked ● pay for leave, which means annual leave, child-related leave (maternity, paternity, adoption, parental and shared parental leave) and sick leave, and includes ‘special leave’, which forthcoming guidance may explain in more detail ● shift premium pay, which is the difference in pay between basic pay and any higher rate paid for work carried out at different times of the day or night. Q: My question relates to a male employee who reached state pension age (SPA) on 26 May, which would have been his usual pay day. However, as the 26th falls on a Saturday in May the pay day would be moved to the 25th. In this situation what NI category should be used for the May salary: category A or C? A: The change of pay day will affect the NI category, as pay day is Friday 25th and he is not of SPA, NICs will be due on any pay earned in May, therefore you cannot change the NI category until the June payroll run. It is always the age the employee is on pay day that drives the NIC category. Also remember there will be a new sliding scale for men (and woman) reaching 66 for SPA. So for men it will be the age of 66 for birthdays from 6/12/53 onwards; please see the following: https://bit.ly/2tKHuBz. Q: We have four employees currently resident in and paid in the UK who will be moving to work in Canada for another entity of our business. They will no longer be classed as UK residents as they will sign new contracts for our company based in Canada and be paid on the Canadian payroll. I am seeking
clarification on their eligibility for relocation costs and if so whether there a limit applicable to them? A: As your employees will no longer be UK residents and are emigrating to another country to both live and work, this cannot be called a true relocation. As the employees will no longer be UK residents, they will no longer have any liability to income tax or NICs. Therefore, as this is not relocation, there will be no relocation allowance awarded to them. The following is an extract from the guidance and a link: “If there is a continuing liability for UK NICs in respect of a person who relocates abroad, any relocation allowances paid remain subject to the same conditions as an employee relocating within the UK.” (https://bit. ly/2A7vO18) Q: Can you offer some guidance on how intercompany transfers should be treated within an organisation? A: If a company runs several Pay As You Earn (PAYE) schemes and an employee moves from one scheme to another, they are technically (and in the eyes of HMRC) starting a new employment with a separate legal entity. This is because each PAYE scheme is its own legal entity in its own right. If an employee had an internal move which meant that they were now paid on a different PAYE scheme they would have to become a new employee on the new PAYE scheme. You would also have to make them a leaver on the old PAYE scheme, producing a P45 form and advising HMRC that they are no longer employed by this PAYE scheme. If after leaving there are any monies owed, this would be processed as a ‘payment after leaving’ on the old PAYE scheme. Another issue to be aware of when transferring a person between PAYE references (in a non TUPE situation) is that continuity of earnings history might be lost which could affect, for example, entitlement to statutory payments. The employee may have a continuation of service for the ‘company’ itself, but as far as HMRC are concerned by moving from one PAYE to another they are in fact starting a new employment. There are no links that support this as HMRC see things very simply, you are employed under one PAYE, if you move PAYE you have left that ‘company’ and have started employment with a new one. n
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Issue 43 | September 2018
| Professional in Payroll, Pensions and Reward |
MEMBERSHIP INSIGHT
CIPP National Forums 2018
This year’s series of well-attended National Forum meetings featured stimulating and lively discussions across a range of topics
Locations and sponsors The National Forum meetings were held at venues across the UK from May to July, as follows: ● Bristol, 3 May ● Belfast, 11 May ● Manchester, 17 May – sponsor: Portfolio Payroll ● Glasgow, 5 June ● Newcastle, 28 June – Cintra HR & Payroll Services ● London: 13 June – sponsor: Payroll Elite 14 June, 11 & 12 July ● Birmingham, 17 July – sponsor: Hays Payroll Management
The speakers ● Diana Bruce MCIPPdip, senior policy liaison officer, CIPP ● Andrew Collins, OmniCyber Security ● Jason Davenport MCIPP, vice chair, CIPP ● Suzanne Gallagher MCIPP, non-executive director, CIPP ● Elaine Gibson MSc FCIPP, education director, CIPP ● Vickie Graham DipM ACIM, associate director of marketing, CIPP ● Stuart Hall MCIPPdip, non-executive director, CIPP ● Eira Hammond ChFCIPPdip, non-executive director, CIPP ● Helen Hargreaves MSc ChFCIPPdip, associate director of policy and membership, CIPP ● Ros Hendren MSc FCIPPdip Mgr FCMIdip FHEA, non- executive director, CIPP ● Lizabeth Lay MSc FCIPPdip, non-executive director, CIPP ● Helen Livesey MBA, senior business director – national payroll channel lead, Hays Payroll Management ● Anthony Macey, director, Portfolio Payroll Ltd ● Samantha Mann MAAT MCIPPdip, senior policy and research officer, CIPP ● Beverley Smith ACIPP, trainer, CIPP ● Gail Affleck Smith, Cintra HR & Payroll Services ● Jill Smith, MCIPPdip, policy manager, CIPP ● Karen Thomson MSc ChFCIPPdip FHEA, non-executive director, CIPP ● Cliff Vidgeon FCIPP, non-executive director, CIPP ● Ian Whyteside FMAAT MCIPP ATT, non-executive director, CIPP
| Professional in Payroll, Pensions and Reward | September 2018 | Issue 43 8
Policy hub
Introduction session Jason Davenport, Elaine Gibson, Stuart Hall, Eira Hammond, Ros Hendren, Lizabeth Lay, Beverley Smith, Karen Thomson, Cliff Vidgeon and Ian Whyteside shared the role of opening and leading the Forum meetings and introducing the speakers and fielding attendees’ questions. The introduction included a CIPP update, covering: ● information about the CIPP ● National Payroll Week 2018 – Keeping the UK paid ● finding the CIPP. Legislative update Diana Bruce, Helen Hargreaves, Samantha Mann, Beverley Smith and Jill Smith delivered these sessions, which included: ● Good work: Government response to Taylor Review – covering: agency workers, enforcement of employment rights, increased transparency, and employment status ● Off-payroll working – covering: off-payroll working in the private sector, compliance challenges in the private sector, and options for change ● Tax and administrative treatment of short term business visitors from overseas branches – covering: consultation on STBVs from overseas branches ● Expenses and benefits – covering: what came in from 6 April 2018, P11D format updated, PAYE settlement agreements, childcare vouchers and termination payments ● Minimum wage – Low Pay Commission review, compliance in action, Director of Labour Market Enforcement ● Payment services regulations ● Student loans deductions
to 2017, there has been a 26% increase in payroll vacancies in 2018. Due to continuing business growth, expansion of Portfolio Payroll means it has two offices: in Manchester and London. Make happy happen Gail Afflect-Ward and Carsten Staehr presented this session which revealed that everyone working in payroll at Cintra must be CIPP qualified. If a new employee isn’t so qualified he or she embarks on a qualification. At Cintra, which has achieved CIPP’s Payroll Assurance Scheme accreditation, more than 70 staff have achieved the CIPP Payroll Technician Certificate, more than ten have achieved the Foundation Degree and more than ten have trained in pensions management. Cintra’s ‘wall of fame’ displays the certificates and qualifications of the staff. The CIPP allows Cintra to be involved in current issues within payroll and informs via Professional magazine and website. Cintra loves the annual conference and the graduation ceremony is the year’s highlight. An overview of the payroll market – you are attractive! Helen Livesey explained how busy the market is and how payroll candidates are very sought after; and revealed that opportunities and optimism abound in payroll. Those in highest demand were identified, and the ideal payroll candidate outlined. Discussing payroll salaries Helen observed that increased demand sees wage inflation. Employers keen to retain their payroll professionals are making counter- offers to individuals who have secured another job offer. n
● Gender pay gap reporting ● Workplace pensions – covering: automatic enrolment, TPR compliance activity increases ● Future developments – Welsh rate of income tax, working parents, flexible SSP, itemised pay statements. Maximising your CIPP membership Jason Davenport, Elaine Gibson, Stuart Hall, Eira Hammond, Ros Hendren, Lizabeth Lay, Beverley Smith, Karen Thomson, Cliff Vidgeon and Ian Whyteside delivered these sessions which explained how members can make the most of the benefits available
to them including: ● benchmarking ● Policy think tanks and surveys ● logging CPD ● Chartered membership. General Data Protection Regulation (GDPR)
Andrew Collins, Jason Davenport, Elaine Gibson, Vickie Graham and Karen Thomson delivered this session which provided the latest information about the introduction of the GDPR, and covered: ● data retention and record keeping ● communications ● contract clauses. Payroll market update and review Anthony Macey delivered this session presenting an update on the payroll recruitment market, focussing on the north west, information about the value-added services available to CIPP members, and setting out benchmarking data. Anthony revealed that when compared
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| Professional in Payroll, Pensions and Reward |
Issue 43 | September 2018
MEMBERSHIP INSIGHT
5 minutes with…
Jill Smith MCIPPdip, Senior policy and research officer, CIPP
Tell us about your career and background After leaving school at the tender age of eighteen, I found myself enrolled in the Women’s Royal Naval Service; not a path I chose, but one that I absolutely loved. Naval training provided me with a solid foundation incorporating self-discipline, teamwork, self-belief and the ability to work to extreme deadlines. All of which have supported my development. I left the navy after five years in 1991 and joined local government as a housing and benefits supervisor until re-organisation in 1996, where I began working for East Riding of Yorkshire Council and transferred to the payroll section in January 1997 as a payroll supervisor. In this role I gained a wealth of knowledge and experience in both local government and end-user clients progressing to team leader. In 2005 I attained my certificate in training practice which qualified me as a trainer; I developed this role whilst working in payroll and became a freelance trainer for the CIPP in April 2015. When did you first become involved with the CIPP? I realised education was important to progress and on exploring the options available it quickly became apparent that the Institute of Payroll & Pensions Management (now CIPP) was the company for me. They were professional and the level of training and support that was available for a novice (as I was back then) gave me the confidence to enrol on the Foundation in Payroll Administration course which then led onto the Diploma in Payroll Management, which I completed in 2002.
What does your role mean to you? My role proves that no matter what your background, if you set goals, work hard and have a support mechanism in place you can achieve success. From my humble beginnings, I am now in a position where I can represent members and the wider payroll profession. As changes to the payroll and pensions legislation are made, I am able to represent payrollers, acting as their voice. I am also able to influence and assist government; helping ensure that the process of change is as smooth as possible. What does the future hold for the future of payroll, pensions and reward? ‘Forever evolving’ is a statement that springs to mind and this is nothing new in the payroll industry. Brexit brings its uncertainties and no doubt challenges; as who knows what laws and regulations the government will retain or change, causing just another headache for payrollers but I am certain the industry will as always embrace and get to grips with change. What do you do in your available time to unwind? As a qualified fitness instructor I like to be active and manage a couple of spin classes and gym sessions a week along with cycling and power walking. When I have had a tough day at the ‘office’ this helps to refresh and relax the mind. Finally exhausted I also enjoy socialising with family and friends over a good meal and a glass of wine. n
| Professional in Payroll, Pensions and Reward | September 2018 | Issue 43 10
CIPP update
CIPP update
New Chartered Members WE ARE delighted to announce the latest members to successfully achieve Chartered membership:
Future of payroll revealed THE CIPP and Workday Future of payroll research survey report for 2017–18 has been released. You can download a copy through the resource library at cipp.org.uk or by emailing info@cipp.org.uk . This research goes someway to predict the future of payroll, anticipating developments based on the responses provided by you, the professionals working in the industry. We cannot escape the fact that technological enhancements are impacting every element of our personal and working lives, and will continue to do so. This report recognises that payroll professionals believe that technology is making them more efficient, but that there are further efficiencies which could be gained through integration with finance and human resources systems. It is interesting to see that the lifecycle of payroll software is between five to ten years – will this have an impact on the future of payroll if the department is using outdated technology and legacy systems? The modern-day ‘payroller’ has a very demanding role and a very important one; they are instrumental in an organisation when it comes to ensuring compliance with legislation. The consequences of non-compliance are not just financially harmful through penalties, fines and even litigation; reputational damage can be even more detrimental to a business, especially in the long-term. There is no doubt that the payroll professional of today has a wide remit and has both internal and external pressures to consider. It was evident that the people involved in payroll, regardless of the level, are passionate about their roles and take pride in what they do.
● Rachel Akister ChMCIPPdip ● Justine Riccomini ChFCIPP ● Robert Lancaster ChMCIPPdip ● Nicholas Phillips ChMCIPPdip ● Deborah Auton ChMCIPPdip Chartered membership recognises the highest level of professionalism within the payroll industry and demonstrates an individual’s commitment to compliance, best practice and excellence in payroll. To upgrade to Chartered membership, visit cippmembership.org.uk or email membership@cipp.org.uk for more information.
BA and MSc graduates CONGRATULATIONS TO the students of the BA in Applied Business and Management and the MSc in Business and Reward Management, who graduated on Friday 20 July:
Jack Buxton BA(Hons) MCIPP Frances Moore BA(Hons) ACIPP Elizabeth Brannigan BA(Hons) ACIPP Laura Wood BA(Hons) MCIPP Rhys Davies BA(Hons) MCIPP Jennifer Rogers BA(Hons) FCIPP Pamela Stevens BA(Hons) MCIPPdip Lorraine Johnson BA(Hons) MCIPPdip Glenda Upton BA(Hons) MCIPPdip Bridget Pullen BA(Hons) FCIPP Claire Austin MSc MCIPP
Futureofpayroll RESEARCH SURVEY REPORT TheCIPPsFutureofPayroll reporthasbeenmadepossible through thecollaborationofahighnumberofpayrollprofessionalswithin theUnitedKingdom,and thesupportofWorkday.
The 2018–19 future of payroll survey is live from 3 September; make sure you complete the survey to help shape the future of your profession.
Alice Davies MSc MCIPPdip Valmais Dreyer MSc FCIPP Jimmy Enoch MSc ACIPP Ian Hodson MSc ChMCIPPdip Lubica Kadlecova MSc MCIPPdip Annabel McLaughlin MSc MCIPPdip All graduates will be invited to the CIPP’s graduation ceremony, taking place on 2 November 2018.
Sponsored by
PAS – compliance and best practice WE ARE delighted to announce that the following organisations have been awarded the Payroll Assurance Scheme (PAS) in 2018 to date (July 2018): ● Hodgesons ● Yorkshire Water Services
CIPP’s outstanding accomplishments in international payroll
THE CIPP has been honoured by Neeyamo for outstanding accomplishment in the field of UK education and training in international payroll. Based in India, Neeyamo have recognised the CIPP for the support and education provided to them in delivering UK payroll to their clients.
● Sainsbury’s Supermarkets Ltd ● Fourth
To find out more about the Payroll Assurance Scheme and how it can mitigate risks in your business, visit payrollcompliance.org.uk or email compliance@cipp.org.uk .
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Issue 43 | September 2018
| Professional in Payroll, Pensions and Reward |
CAREER DEVELOPMENT INSIGHT
Diary of a student…
Samuel Worf Spicer MCIPPdip Assistant manager, Wilkins Kennedy LLP
How did you cope with the work-life balance and your study? With copious amounts of tea and a few late nights. Admittedly, year two was far easier for me to manage my study and work-life balance but year three was a real struggle, given the sudden change in circumstances. Luckily, studying came a bit more naturally to me due to not-long being out of ‘school mode’ if you were. I mainly studied at each spare opportunity I had – lunchtime at work, late nights and whilst travelling as a passenger to name a few. My employer granted me some study leave in order to complete my final dissertation which helped get me over the finish line. Did the fact that the CIPP is Chartered or recognised within the industry influence your decision to enrol with the CIPP? And were there any particular modules which were of interest prior to enrolling? Of course – the CIPP is the largest Chartered body dedicated to payroll, especially as the degree is accredited by the University of Worcester. Every module was useful, and some were more challenging than others; for example, when trying to apply my learning to a bureau environment as opposed to industry. Understanding customers and clients and the leadership modules were topics that interested me the most. For someone who is thinking about studying for a CIPP qualification, what would your advice be to them? Take the opportunity with both hands. The course offers potential students a recognised qualification as well as enhanced skills and knowledge to take away to the workplace. The course is stressful at times, but the graduation ceremony is well worthwhile (and the sandwiches provided at the review days sweetens the blow). n
Can you give us a brief background on your life? I was born and bred in Orpington, Kent and have been with my current employer for nearly five years. After completing my A-levels in 2012, my original intention was to study to become a design and technology secondary school teacher. Due to a lack of uptake the course did not go ahead, so upon my return from a two- month trip to Australia I decided to pursue an apprenticeship. I used to enjoy playing rugby every weekend, but a recent shoulder reconstruction has converted me from player to a supporter. Can you give us an insight into your career and qualifications background? Having returned to the UK and a few interviews later, I began my career with Wilkins Kennedy LLP in September 2012 as an accounts apprentice, splitting my time between payroll and accounts. I finished studying the Association of Accounting Technician level two qualification and made the ‘weird’ decision (not my word!) to progress my career in payroll rather than accounts. I enrolled on the Payroll Technician Certificate, offered by the CIPP in September 2013 and passed in February 2014. Seeking further development, my employer funded my enrolment onto the Foundation Degree in Payroll Management (year two) in autumn 2014. A member of the team left suddenly in October 2015 and I was subsequently promoted from payroll junior to payroll supervisor; just in time for my
final year of study for my degree and before my 22nd birthday. After graduating in November 2016, I was promoted to assistant manager in 2017 and now oversee a team of four processing 300 client payrolls over a range of frequencies. Why did you choose to study the Foundation Degree? My ambition and excitement after completing the Payroll Technician Certificate led me to present a business case to my employer to study the Foundation Degree. The degree came highly recommended as being the industry-leading course in terms of payroll which was also accredited by the University of Worcester. Not only did the course provide me with advanced knowledge of payroll processing and legislative updates, it helped shape my leadership style and operational thinking in line with my new role at the time. How important is this degree in relation to your career? I believe the degree is instrumental in improving career opportunities. It is more sought-after by potential employers than ever before and studying the degree sets you apart from other candidates. Studying payroll further since leaving school has allowed me to achieve a lot at a relatively young age and puts me in good stead for bigger and better things in years to come. The year-three syllabus also provides you with transferable skills that can be applied to different industries other than payroll, further widening your scope for a career move.
| Professional in Payroll, Pensions and Reward | September 2018 | Issue 43 12
Career development insight
Helen Livesey, senior business director at Hays Payroll Management, sets out how payroll professionals can drive forward their development The way forward
A s a key strategic priority for many organisations, the opportunities for payroll professionals are numerous and varied and many employers continue to increase their headcount in recognition of the importance of investing in payroll. As the profession becomes more prominent, so too are payroll professionals becoming more ambitious to raise their profiles and get ahead in their careers. Our recent research, supported by the CIPP, revealed that in order to do this payroll professionals and their employers need to invest in skills development to ensure their payroll teams have a thorough understanding of the many changes impacting the profession. The research, which forms the basis of our Hays Payroll Report & Salary Guide 2018 , explores how payroll professionals can invest in their own progression to accelerate their careers, and how employers can best support progression plans. For more information about the report, or to download a copy, visit hays.co.uk/hays- salary-guide. Here are some of our key findings for payroll professionals to consider for supporting their development. ● Prioritising your development – As payroll becomes increasingly complex – in large part due to the increasing number of new legislations impacting the profession such as the General Data Protection Regulation and auto-enrolment – payroll professionals with legislative and operational awareness of the impact of these changes will see increased demand from employers. In order to get ahead professionals should build their knowledge of current and upcoming legislation. One way to stay
on top of these changes is to utilise CIPP’s legislation-specific resources, such as training, webcasts and roundtable discussions. In fact, our report found that over half (53%) of employers would offer a higher base salary to a candidate with a CIPP qualification, suggesting that for those looking to move up a salary band, investing in this may be a financially rewarding step. Unfortunately, the majority of professionals reported experiencing barriers to learning with the top three obstacles being that they are worried about: m the impact upon their time and workload (65%) m a lack of personal funds (63%), and m a lack support whilst studying (26%). Though many employers do support professionals in taking on additional learning, professionals looking for new roles should prioritise finding out if employers they want to approach do offer financial support or flexible hours to support further qualifications. ● Varied experience – In addition to qualifications, varied payroll experience is highly in demand by employers. Over a third (37%) of employers who hired payroll staff in the past year reported that applicants were lacking in sector-specific experience. Payroll professionals looking to gain this experience should look to speak with their manager about additional on-the-job training, or access to external courses where possible. Additionally, employers looking to attract talent may offer the opportunity for professionals to work alongside other departments in the business, so professionals should be mindful of this when looking for a new role. This kind of opportunity will help any payroll
professionals become more commercially aware and therefore more strategic decision makers, with a better understanding of wider business challenges. ● Align expectations – Payroll professionals are ambitious. Nearly half (43%) expect to be in a role just one to two years before they are promoted; and 20% think promotions should occur after only six months to a year in a role. However, there is a clear mismatch between these expectations and employer attitudes towards progression, as 47% of employers believe payroll employees should be in a role for two to five years before promotion and only 4% think a promotion should come after six months to a year. Whilst employers should be mindful of their ambitious workforce and be transparent with regards to profession opportunities, professionals also need to be clear about their ultimate career aspirations and work to meet these set objectives. ● Securing a pay rise – There is good news for payroll professionals looking to increase their salary over the next twelve months as 53% of employers anticipate their payroll employees will see an average salary increase of up to 2.5% in the year ahead, while 20% foresee salary increases of up to 5%. The predicted increases follow payroll salaries rising by 4.2% in 2017, the highest overall increase in the accountancy and finance sector. For professionals who are looking for a new job or promotion this year should ensure they are being paid in line with others at their level, understanding what typical salaries are and what their potential earnings could be. n It’s evident that payroll will remain a constantly changing landscape in need of skilled and experience practitioners,
...payroll professionals and their employers need to invest in skills development...
and professionals who capitalise on this will remain in demand by employers.
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Issue 43 | September 2018
| Professional in Payroll, Pensions and Reward |
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