Official publication of The Chartered Institute of Payroll Professionals
in Payroll, Pensions & Reward
Issue 44 October 2018
National Payroll Week 2018 KEEPING THE UK PAID
OpRA The sting in the tale
Payments Routes of a necessary evil
AE compliance Employers targeted
CIPP update | Policy hub | Career development
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Physical money, whether it’s checks [cheques] or cash or credit card, are digitizing in front of us. Dan Schulman (1958–)
On Sunday 16 September easy-to-miss notices were affixed by sticky tape to the entrance to my local Aldi store, informing Editor’s comment
of new methods of delivering payments, whether to employees or third parties. As well as recommending the feature article (page 40) discussing various aspects of delivering payments, I recommend the article on the blockchain which is in the online version. We should all take pleasure and pride in the National Payroll Week celebration (from page 13, with more content online), themed, Keeping the UK paid. Martyn Faulkner, a former industry stalwart and luminary, was featured on his retirement in the May 2016 issue. Sadly, this issue carries Martyn’s obituary (page 12).
that only cash would be accepted in settlement of purchases as there was a system problem preventing payment via plastic
cards. Fortunately, opposite the store was a cash machine which had a queue of waiting users, some of whom had reached the checkout till before learning of the constraint. Apart from observing, yet again, that technology is prone to epic fails, I was reminded that increasing use of plastic cards is causing reductions in the number of ATMs (automated telling machines) across the UK. A strange world potentially lies ahead, where payment in cash is rare. One strand of the rapid advances in technology is enablement
Mike Nicholas MCIPP AMBCS Editor
Chair’s message
I’ve been providing a message in this magazine for over two years, but my term as chair is coming to a close. At the annual general meeting on Tuesday 4 December, I will proudly hand over the virtual gavel to your chair elect, current vice chair,
More recently I’ve had the opportunity to attend the South African Payroll Association (SAPA) annual conferences in Johannesburg, Cape Town and Durban for the first time. I’ve spoken to the delegates about the work the CIPP undertakes here in the UK with its members, HM Revenue & Customs and partners. It was great to share our experiences with new payroll professionals in another part of the world; after all, we’re all striving for compliance despite the differences in legislation. Now we are all set for our Annual Conference and Exhibition this month, which for the first time will be held at the Hilton Birmingham Metropole. We visited the venue earlier this year and I’m excited to meet lots of you and share experiences as we strive to learn and develop ourselves.
Jason Davenport MCIPP. It’s interesting to consider where our payroll career will take us as we strive to achieve excellence each month, producing payroll and ensuring everyone is paid accurately and on time. In my own day job, through my consultancy company, I’ve recently spent some time with my employer’s UK payroll team who are based in Gurgaon, India. It was a great opportunity to experience how producing payroll in another country is as challenging as it sounds, as I’m sure those of you working globally in payroll can testify. For example, the India based team must work UK hours (late into the Indian evening) to support their UK based work force and be on hand to communicate with their payroll service provider.
Eira Hammond ChFCIPPdip Chair, CIPP
As we enter autumn, we enter a very busy season for our profession. We saw an excellent turn out once CEO’s message
awards and can testify to their independence in doing so. I look forward to meeting up with many of you at the event and to celebrate with our winners at the Annual Excellence Awards. Then into November and a time for great celebration as we hold our Graduation Ceremony for those who have successfully completed our university approved qualifications. I never tire of seeing such a prestigious event supported by the friends and family of those successful. Particularly so, where years of time and effort have gone into successfully graduating where friends and families have sometimes had to take a back seat.
again, with many distinguished guests celebrating National Payroll Week at the
House of Commons on 4 September, supported by our chair, Eira Hammond, as well as Chartered, fellow and full CIPP members. And what a response from payroll departments up and down the land! Close on a 1,000 National Payroll Week packs were distributed, as we continued to celebrate and recognise the important role payroll plays both in our organisations and economy. Our Annual Excellence Awards return on October 11, where we have continued to have an outstanding number of quality submissions, ready for our independent judges to adjudicate. I was able to meet up with the judges during the summer to thank them for their services to the profession on adjudicating these prestigious
Ken Pullar FCIPP Chief executive officer, CIPP
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| Professional in Payroll, Pensions and Reward |
Issue 44 | October 2018
in Payroll, Pensions & Reward PROFESSI NAL
Also available online at payrollpensionsandreward.org.uk
Contents
October 2018
42
Dismissal, compensation, postponement
Nicola Mullineux reviews decisions in three cases
Features
28
30
26
Termination payments – the saga continues Peter Minchinton reviews the new rules and areas of uncertainty
OpRA – the sting in the tale Justine Riccomini looks at how the new regime is bedding in
Tax codes Jill Smith provides basic explanation
33
38
32
Rationalising pay Helen Hargreaves sets out details of new reporting requirement
AE compliance TPR reveals how it identifies and successfully pursues employers
New AEO, new problems Neil Tonks divulges details of a new AEO
| Professional in Payroll, Pensions and Reward | October 2018 | Issue 44 2
41
39
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
Paid time off John Dean reveals the importance of this employee benefit
Pension dashboard fires up Henry Tapper discusses why many in the industry are fired up
Chief executive officer Ken Pullar FCIPP CIPP board of directors
48
44
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
Payments - routes of a necessary evil Jerome Smail discusses
NMW and sleep-ins Danny Done sets out the current position
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
Regulars
01 Editor’s comment, and Chair’s and CEO’s message 04 Membership insight On your behalf, Advisory, Five minutes with 09 Events Horizon 10 Career development Diary of a student, CPD 13 CIPP update 15 National Payroll Week 23 Scottish National Conference 24 Movers and shakers 25 Payroll news
26 Payroll insight 38 Pensions insight
Roundtable: National minimum/ living wage compliance
Events, news and developments
The Pensions Regulator
40 Reward insight 46 Industry news 47 Feature article Delivering payments 58 Confessions of a payroll manager Additional online content 12 Design and deliver workplace learning strategy 22 The real impact of payroll 40 Unpaid overtime killing UK productivity? 47 Blockchain – the future of payroll payments 51 USA’s 401(K) and similar retirement plans 52 The Happiness Project
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.
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| Professional in Payroll, Pensions and Reward |
Issue 44 | October 2018
MEMBERSHIP INSIGHT
On your behalf
Policy team update
Diana Bruce MCIPPdip, CIPP senior policy liaison officer, provides an update on recent developments
Off-payroll working An important consultation was published back in May which sought views on the best way to tackle non-compliance with the off-payroll working rules (‘IR35’) in the private sector. This provided options for changes, but the government was also interested to hear how the rules as they currently apply in the public sector could be adapted to fit the needs of the private sector. The CIPP policy team joined forces with the Chartered Institute of Personnel and Development (CIPD) to inform our response to this consultation. We published two joint surveys to our respective members and to the wider human resources (HR) and payroll profession which ran throughout July and were aimed specifically at HR and payroll practitioners and HR and payroll contractors. In addition to the surveys, the CIPP – together with representatives from HM Revenue & Customs (HMRC) – held a roundtable to gather anecdotal evidence and views directly of HR and payroll practitioners. The CIPD together with the Association of Independent Professionals and the Self-Employed (IPSE) held a workshop of HR/payroll and non-HR/ payroll contractors to gain their insights about the proposals. (We extend thanks to those who took time out of their busy schedules to respond and take part in these meetings.) Some of the key findings are not surprising as although IR35 has moved into day to day operations for the public
sector, for many in the private sector it is still a specialised area. Of those who responded: ● 53% have little or no knowledge of the current rules of IR35 for contractors operating within the private and voluntary sectors ● 79% don’t believe they have the capacity, knowledge or resources to deliver the preferred option in the private and third sectors ...79% don’t believe they have ● 59% currently have limited or no responsibility for determining IR35 status and a further 64% have limited or no responsibility for making payments to contractors captured as a result of an IR35 determination ● 91% believe that they will need some level of support from HMRC to determine status with only 9% believing that they would need no support at all from HMRC ● 69% will require written guidance and specialist knowledge from HMRC ● though 30% currently have yet to understand the impact the reforms would have on them, 45% already know that they would need to enlist support of a third-party organisation to assist in making an IR35 determination. These statistics show how much of the capacity, knowledge or resources...
an education piece it will be for the private sector to take on the IR35 rules. In addition: ● Over 69% currently employ the services of an individual via an intermediary such as a personal service company ● 42% know a fair amount or know well about the impact and operation of IR35 within the public sector ● 82% expect contractor charges will increase, with 86% expecting increased ‘employer costs’ and workload (89%) as a result of reform (similar to that of the public sector) being rolled out to the private and third sectors. Importantly, 55% of respondents believe that a phased delivery of any reform is necessary to ensure widespread awareness and understanding of the ultimate implications. This is an opinion shared by many organisations, including the CIPP and the CIPD. Commenting on the findings, Charles Cotton, senior CIPD adviser, performance and reward said: ‘Based on what both payroll and HR practitioners and contractors have told us, the CIPD and CIPP strongly recommend that changes to the existing off-payroll working rules for engagements in the private sector will need to be implemented gradually to ensure that firms and the industry have enough time to amend their existing processes.” In full agreement of the need to phase changes gradually and in recognition of the range of employer size and complexity within the private sector, Samantha Mann, CIPP senior policy and research
| Professional in Payroll, Pensions and Reward | October 2018 | Issue 44 4
Policy hub
officer, highlighted: “If the preferred option is chosen then HMRC will share significant resource challenges to deliver knowledgeable customer service across all service lines together with information and materials that recognise the differing needs of the increased IR35 customer base. “Our findings also confirm that whilst the CEST [check employment status for tax] tool is largely seen to be an improvement on its predecessor, before further reform is considered thorough user evidence research together with a review of how CEST operates and ideally through public consultation should be carried out so as to increase the number of reliable determinations.” The following statistics from the survey support the need for further consultation: ● 74% of contractor respondents who have used CEST believe it to be inaccurate ● 64% anticipate needing professional advice as a result of any reform within the private and third sectors ● 69% are not confident that their clients will have the capacity, knowledge or resources to be able to make a correct status determination ● 56% plan to seek only contracts in the private and voluntary sectors in which the off-payroll rules do not apply ● 47% believe that voluntary and charitable organisations will struggle to deliver IR35 reform with 44% believing that the construction industry will also struggle significantly. The full joint consultation response can be found here: https://bit.ly/2wehgZx. STBVs from overseas Another consultation which was published in May affects only employers dealing with the tax and administrative treatment of short-term business visitors (STBVs) from foreign permanent establishments (‘overseas branches’) of UK companies. In the consultation the government looked at two broad policy options of how change could be introduced to ease the administrative burden on employers: ● extending the pay as you earn (PAYE) special arrangement UK workday rule ● new tax exemption for STBVs from overseas branches. To provide feedback, over and above comments shared during a HMRC roundtable, throughout July the policy team ran a survey of our members and the wider payroll profession. The survey
findings, where relevant, were used to support our answers. The survey received ten responses in total, which is insignificant in contrast to the numbers that we would expect from our membership base; however, we know from other research that over 20% of our membership base manage international payrolls in addition to their UK payrolls. It is believed that the response level reflects an apathy amongst affected employers when it comes to compliance with the significant administrative burden, and thus there is a perception that this holds less importance than other tax and reporting obligations and is simply an ‘unnecessary’ significant administrative burden. ... not close the childcare voucher scheme without knowing its impact on working parents Whilst not covered within this consultation, the 19 April deadline for the STBV PAYE special arrangements is impractical and results in the annual need for submission of earlier year update returns. We would call for further consultation in this area that will result in a significant extension to the deadline for STBV PAYE special arrangement. There are benefits to be gained by the implementation of both options – we don’t see this as an ‘and/or’ choice. Consideration should be given to consulting further on greater alignment with definitions and numbers (e.g. day counts between different processes that are unique to affected employers). The CIPP supports the calls for greater alignment but recognises the challenge to employers of recording all days of presence such as personal holidays that may not currently be recorded in relevant company systems. The imminent departure of the UK from the European Union will have a significant impact on business visitors generally but more specifically the impact on National Insurance costs is the cause of significant unrest. We are aware that this falls outside of the current consultation and that much is unknown at this juncture, but are minded that the employer population affected by the proposals will be impacted
significantly and so look forward to open consultation and discussion as to how working policies and practices will need to be adapted. The survey results can be found here: https://bit.ly/2wehgZx. Childcare vouchers The pleas to keep childcare voucher schemes open to new entrants beyond the extension to October, until effects of scrapping are known, continue. In June, the chair of the Treasury Committee wrote to the chief secretary of the Treasury to convey the committee’s disappointment with the government’s response to some of its recommendations (https://bit. ly/2MNPOuX). When the committee asked the chief secretary to provide an economic analysis of who will gain and who will lose from the transition from vouchers to tax-free childcare (TFC), she was unable to do so. The government has also failed to provide, when asked, a comparison between the programme and administrative costs of the two schemes. In the letter, the committee chair states the committee “was clear in its recommendation that the government should not close the childcare voucher scheme without knowing its impact on working parents. By carrying out a post- implementation review of tax-free childcare two years after its commencement, the government will be ending childcare vouchers – a scheme that has been extremely popular with working families – without seeking to understand what the consequences will be. “As was evident from the 2017–18 HMRC Supplementary Estimate, and the OBR’s November 2017 Economic and Fiscal Forecast, the uptake of [TFC] has been 90 per cent lower than the government had expected. “The committee again urges the government to reconsider the committee’s recommendation and commit to publishing an analysis of the take-up of [TFC] compared to the continued use of childcare vouchers during the first year of the scheme – and the subsequent impact on households – prior to making a decision on whether to discontinue vouchers in October 2018.” At the time of writing, government has not made any further comment on this contentious issue. n
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| Professional in Payroll, Pensions and Reward |
Issue 44 | October 2018
MEMBERSHIP INSIGHT
This piece of legislation now means that regardless of an employee’s age and if all of the eligibility requirements for SSP are met then SSP would be paid and processed in the same manner as an employee regardless of whether they had reached SPA. Q: I would like clarification on the following. There used to be a rule whereby when a new employee gave their employer form P45 from their previous employment; the procedure required a manual check had to be performed that the tax deducted was accurate for the taxable earnings. If there was a discrepancy you were to use the correct tax deducted figure that you had calculated instead. Is this still the case? A: Yes, I can confirm that this is still the correct procedure: you would need to check the P45 and amend the figures if they are incorrect. HMRC state (see https://bit.ly/2NkBxDa) that you should “Use your employee’s P45 to work out their tax code and update their details in your payroll software. If your employee left their last job after 5 April 2018, you should also update both the ‘total pay to date’ and ‘total tax to date’ fields in your payroll software for the first week you included this information. If your software finds errors, update the fields with the correct figures.” Q: An employee who is currently on statutory adoption leave (SAL) and statutory adoption pay (SAP) has informed us that she is no longer the carer of the adopted child. Can I assume that I would need to end the adoption leave from the date the adoption ended or is it similar to maternity leave and pay and the SAL and SAP continue for the full 39 weeks? A: I can confirm that the HMRC guidance states that if the child ceases to live with the adopter during the SAP period, the pay period will end eight weeks after the end of the SAP pay week in which the child stops living with the adopter, if it wasn’t due to end earlier. Therefore, in the situation you describe, the employee’s SAP would end eight weeks after the date the child was removed out of the adopter’s care. Q: We have an employee who left our employment back in March 2018 and is now due their backdated bonus
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.
Advisory
*please see summary at cippmembership.org.uk for details.
Q: We have an employee who is going on a business trip and the company would like to pay the cost of the spouse accompanying this employee on the trip. Would this be a reportable benefit in kind? A: Where the spouse/partner does not contribute to the business trip (i.e. only going for a holiday) then it will be a reportable benefit in kind against the employee. Tax relief can occur where the spouse has practical qualifications directly associated with the purpose of the business trip, or if the employee’s health was so poor that it would be unreasonable to expect them to travel alone. Q: My colleague and I have recently read that class 1 primary and secondary National Insurance contributions (NICs) are payable on mileage payments when they exceed the 10,000-mile threshold set by HM Revenue & Customs (HMRC). Is this correct? A: The 10,000-mile threshold refers to the amount that can be paid under the mileage allowance payments exemption. The tax rules provide that if the business mileage exceeds 10,000 only 25p can be paid tax-free, so if you pay the employee more you would have to report the excess per mile in the P11D return for tax purposes at box E. However, the NICs position is different: if no more than 45p per mile is paid (even if the mileage exceeds 10,000) no NICs will be due on the payment. If 45p is exceeded you would pay the excess through the payroll as NICs could be calculated and deducted from this.
Q: My question is regarding post employment notice pay. We have an employee who will cease employment on 31 July 2018 with no contractual notice period. Their pay period runs from the first to the last day of the month. They will receive normal salary for July but my question is regarding the ‘P’ element in the statutory formula: will the P equal 31 days for July, as their last pay period; or is P 30 days for June, as this was their last pay period? A: The ‘P’ is the number of calendar days in the employee’s last pay period ending before the trigger date. If there is either a contractual or statutory notice period, the trigger date would be the last day of employment, and you would use the number of days in the June period. Please find below links to GOV.UK which may be of further help to you. ● https://bit.ly/2MwVzxQ, which provides details on P calculation ● https://bit.ly/2NnGXNH, which provides an example of a termination payment that includes different elements e.g. redundancy, compensation, bonus or pay in lieu of notice. Q: Can you please help with a debate we are having over statutory sick pay (SSP) when an employee is in receipt of state pension. My understanding is that if an employee has reached state pension age (SPA) they are not entitled to receive SSP. Is this something you can confirm? A: I can confirm that there used to be an upper age limit of 65 for the receipt of SSP but this was removed several years ago when the Employment Equality (Age) Regulations 2006 were introduced.
| Professional in Payroll, Pensions and Reward | October 2018 | Issue 44 6
Policy hub
in September 2018. They were paid this as a payment after leaving (PAL). However, in June 2018, when the employee reached SPA, we processed the PAL bonus payment and applied class 1 NICs under category A. The ex-employee has been in touch and queried this. Should we have applied category C, instead? If so, should we refund the difference in primary NICs to the former employee? A: If you have verified the employee’s date of birth (DoB) and can clearly see that they were at SPA when the payment was processed, then yes you should correct the NICs position in the next available full payment submission and generate a NICs refund for the ex- employee. The key here is that category C NICs were due as on pay day they were above SPA – so you should have changed the NIC category in the payroll at the time of processing. Q: In our organisation we pay six months’ sick pay at full rate, followed by six months’ sick pay at half rate. We have an employee who has been sick for seven months; so has used all their full pay entitlement and some of their half pay. I didn’t send a form SSP1 after 28 weeks as we didn’t pay SSP as such because the employee was receiving full pay. When should the SSP1 form have been sent? A: Regardless of whether you only pay SSP or company sick pay and this incorporates the SSP element, you should still have sent a form SSP1. It is issued at weeks 23/24 in anticipation of them receiving 28 weeks of SSP. The following link may be helpful https://bit.ly/2wnl1Lg. Q: An employee will be seconded to a temporary role for approximately eight months so will fall under the temporary-workplace-for-a-limited- duration provision. The temporary workplace is a long way from where they normally live and work and it’s not a commutable distance. For the company to put them in a hotel is proving to be very expensive, so therefore we are looking into a short-term property rental. Please can you advise the implications of this arrangement, as I
have looked on the HMRC website and cannot find enough information about this subject/scenario? A: HMRC’s Employment Income Manual states that this is an allowable element if the employer provides an employee on secondment at a temporary workplace with furnished or unfurnished living accommodation. This guidance explains what limits should be placed on the relief under section 338 of the Income Tax (Earnings and Pensions) Act 2003 for the cost of living accommodation. The main criterion is that the cost should be accepted as reasonable where the total cost of providing accommodation does not exceed the cost of hotel accommodation of an appropriate standard. The guidance can be found here: https://bit.ly/2wqwppH. Q: An employee has had their corporate credit card stolen. Contractually the onus is on this person to repay any amounts charged to the credit card, which now means our employee owes the credit card company a significant amount. As the employer we would like to assist as much as we can and wondered whether we could process a loan of £1,500 via the payroll which the employee can repay over a six-month period from their net pay. Would this be deemed as an interest free loan similar to that of a season ticket loan as it is under the threshold of £10,000? A: Yes, this is perfectly acceptable, as the employer can lend an employee money so long as the value or combined values of other loans do not exceed the £10,000 limit set by HMRC. If this limit were exceeded, it would be a beneficial loan and reported in a P11D return. n
Payroll Assurance Scheme Don’t wait until it’s too late
With penalties for non- compliance of up to £10,000 per day, can your business afford not to be CIPP Payroll Assurance Scheme accredited.
For more information: Visit: cipp.org.uk/PAS Email compliance@cipp.org.uk Call: 0121 712 1000 Live chat with us
cipp.org.uk @CIPP_UK
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Issue 44 | October 2018
| Professional in Payroll, Pensions and Reward |
*correct at time of publication
MEMBERSHIP INSIGHT
5 minutes with…
Dawn Parry BA(Hons) FCIPPdip Finance manager, CIPP
important part in determining the direction of payroll so as a member I have the opportunity to contribute too. In my role as finance manager I can influence the financial management of the CIPP and ensure we have the financial resources to deliver the services the members need and deserve. Membership engagement is essential to enable the CIPP to guide the future direction of the payroll profession. The CIPP staff are there to deliver the profession you want. What does the future hold for the future of payroll, pensions and reward? On BBC Radio 4 recently there was a piece on artificial intelligence which stated that by 2020 it will have replaced 2.5 million jobs across many professions, including payroll. I see the challenge that we all face when new technologies come along is to adapt quickly to the pace of that change. It’s reported that robotic process automation will remove the need for staff to do repetitive rule-based activities, such as inputting. However, this should be seen as an opportunity to empower payroll staff to become more creative in their job roles and up-skill; to learn design thinking, creativity and analytics. As leaders of the payroll profession we need to reflect on what the payroll department will look like in the next five to fifteen years and draw on our experiences to guide government to the best methods to embrace this new technology. What do you do in your available time to unwind? I enjoy card marking and various arts and crafts. I also have two Labradors that enjoy walking in forests or climbing mountains nearly as much as I do. (And I have a cat that organises us all.) Finally, I enjoy watching sci-fi movies and encourage you to watch Paycheck to spark some futuristic thinking – but it isn’t about payroll. n
Tell us about your career and background In 1980 I began a career in accounting and finance with Austin Rover which lasted fifteen years, via Ward End, Longbridge, Oxford and Land Rover Solihull. At that time, payroll (‘wages’), depended on the finance department to gather the paper clock cards and inform wages of the total hours in order to calculate the employees’ pay and enter amounts in paper ledgers manually. So, no computers! Finance also provided the starters and leavers to the wages department and the personnel department. I remember at the Longbridge plant every Thursday the wages office on lock down as the armoured truck delivered thousands in cash to be counted and put into sealed brown envelopes, along with a hand-written payslip for approximately 20,000 workers. These were then wheeled around the factory in a locked black box by a wages clerk accompanied by a Securicor guard in riot gear. How payroll has changed. I then worked as a management accountant in a small company which sold parts to garages and later in the finance department at the Environment Agency. After this I took a five-year career break to look after my two lovely daughters, after which for eighteen months I ran a B&B with twelve bedrooms and meeting rooms. When did you first become involved with the CIPP? I joined the Institute of Payroll Professionals (IPP) in January 2008 as a part-time finance co-ordinator and was given an opportunity to learn how to calculate payroll by taking the Foundation Degree in Payroll Management,
which to a person who loved numbers was perfect. I graduated in 2011 and became a member of the IPP payroll department which was part of finance. Bitten by the study bug I completed the BA (Honours) in Applied Business Management graduating at age fifty with a first-class degree – which proves that age is not a barrier and it’s never too late to study. In 2013 I became involved with the introduction of student support on the Foundation Degree in Payroll Management and discovered my passion for teaching and motivating students. I became a tutor on the Foundation Degree in Payroll and then briefly a MSc tutor, writing and delivering the finance module. My favourite activity is creating gross to net manual calculations for students to practice. My colleague comments that maybe I would be happier without software. Tell us about your role I became finance manager in 2015 and am fortunate in this role to be involved strategically and operationally with all departments in the business. The financial aims are to ensure profitability to enable the CIPP to re-invest in our products to ensure our members have the best possible learning and other resources available. I also continue to assist in the production of payroll for the CIPP staff and am proud to say we have achieved PQP/PAS accreditation and are always striving for more efficient delivery. What do you think you can bring to the future strategy of the CIPP? The Institute’s members play an extremely
| Professional in Payroll, Pensions and Reward | October 2018 | Issue 44 8
Full details of events and training courses can be found at cipp.org.uk or you can email info@cipp.org.uk for more information. Events Horizon
CIPP and AAT Hot Topics 4 December – London 11 December – Birmingham
AGM Notice is hereby given that the Annual General Meeting (AGM) of the Chartered Institute of Payroll Professionals (trading as CIPP) will be held on Tuesday 4 December at 11.00 at The CIPP offices, 90 Long Acre, Arne Street Entrance, Covent Garden, London, WC2E 9RA.
Don’t miss your opportunity to join us for a range of educational and interactive sessions on the latest payroll and pensions legislation and the recent changes relating to the apprenticeship levy and salary sacrifice changes. This event will provide an excellent opportunity for members to achieve their CPD (Continuing Professional Development), and discuss their CPD objectives and requirements with a member of the CIPP team.
*AAT members are entitled to the CIPP member’s rate of £50.00 + VAT; email events@cipp.org.uk to book your place.
For more information please call 0121 712 1013 , or to book your place please visit payrollevents.org.uk or email events@cipp.org.uk
Training courses
Course
Date *
Location
Course
Date *
Location
Global mobility: key payroll issues Channel Islands and Isle of Man payroll regulations Gender pay gap reporting and HR implications
Bristol
12 November
Birmingham
1 November
Leeds
13 November
London
2 November
Cardiff
14 November
Payroll and HR legislation update
Belfast
16 November
Online
2 November
Newcastle
27 November
Bristol
7 November
National minimum wage and other worker entitlements
Edinburgh
30 November
Manchester
28 November
Manchester
19 November
Devolution issues for HR and payroll
Belfast
30 November
Bristol
29 November
Creating a payroll procedures manual
London
8 November
Dates are subject to change. More dates are available at www.cipp.org.uk/payroll- training-listing
Have you considered in-house delivery of training courses?
Can’t find a date or location for your needs? Let us know by visiting cipp.org.uk/trainingreg . New dates and locations may be added if there is enough interest.
The full list of CIPP training courses can be found at cipp.org.uk/training
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| Professional in Payroll, Pensions and Reward |
Issue 44 | October 2018
CAREER DEVELOPMENT INSIGHT
Providingyouwith independent and impartial support Consult
Diary of a student…
Lynsey Parkes MCIPPdip MAAT Senior finance officer, CK Associates Ltd
Services available: Payroll forensic audit Procurement Invitation to tender Supplier demos Project management
Can you give us a brief background into your life? I live in Derbyshire with my husband and daughter and I enjoy spending time with family and friends. We enjoy travelling and seeing new places. Can you give us an insight into your career and qualifications background? I have worked in admin, finance and payroll positions since leaving school. I’ve worked for CK Group (a recruitment agency) for nearly ten years, performing payroll for both internal and external employees. I’m responsible for ensuring they are paid correctly and on time, and that they receive the best service possible, so they use us again. I also handle sales invoicing and credit control so have a wide variety of tasks and deadlines which keeps me busy and my mind active and means each day is different. I have always enjoyed learning and initially wanted to focus on the accounts side of the business. When I joined the company, I decided it would be a good idea to further my payroll knowledge. Why did you choose to study the Foundation Degree? I wanted a qualification that supported my experience and would further my knowledge. I needed something that would fit around my other commitments and the flexibility of the course made this possible. Being both exam and assignment based gave me the best of both worlds. The knowledge and support from both lecturers and my tutor was first class; the fact I could contact my tutor out of working hours really made a difference. How important is this degree in relation to your career? The degree has helped me immensely.
Dealing with employee queries every day, this qualification has given me the confidence in knowing that the information I am giving is correct and up to date. Being able to keep on top of current changes and new legislation has meant that as a company we have been able to get ahead, plan and prepare for upcoming changes. How did you cope with the work-life balance and your study? I was supported by both work and my family. My daughter was studying for her GCSEs at the same time, so it meant we could support and encourage each other to study and work towards treats when we had completed set tasks. Did the fact the CIPP is Chartered or recognised within the industry influence your decision to enrol with the CIPP and were there any modules which were of interest prior to you enrolling? The fact CIPP is so widely recognised influenced my decision as I knew I was joining a body committed to its members. I was particularly interested in the ‘leading the team’ module as this is something I want to further develop in and pass on my knowledge to other members of the department. For someone who is thinking about studying for a CIPP qualification, what would your advice be to them? Go for it, but be prepared to commit time to researching the modules as it makes the assignments easier and will give you in- depth knowledge and understanding of the subject. It’s hard work and stressful at times but the graduation and friends you make along the way make it all worth it. n
For more information: Visit: cipp.org.uk Email info@cipp.org.uk
Call: 0121 712 1023 Live chat with us
cipp.org.uk @CIPP_UK
| Professional in Payroll, Pensions and Reward | October 2018 | Issue 44 10
*correct at time of publication
Professional development insight
Onlineprospectus available now
Continuing professional development (CPD) is a combination of approaches, ideas and techniques and is essential to help you manage your own learning and development. Continuing professional development (CPD)
W hatever your level of CIPP membership, you have access to the continuing professional development (CPD) area of cipp.org.uk . In accordance with the CIPP code of conduct, all associate, full and fellow members need to evidence CPD to be able to renew their membership. The CIPP continuously spot check CPD activity so make sure you take the time to log any form of learning or development on your record to ensure your membership level is maintained. Why is CPD important? CPD is about where you want to be and how you plan to get there; an investment that you make in yourself. It can help you keep your skills up to date and prepare you for greater responsibilities. CPD can also boost your confidence, strengthen your professional credibility and help you become more creative in tackling new challenges. CPD makes your working life more interesting and can significantly increase your job satisfaction. Undertaking CPD will accelerate your career development and is an important part of CIPP membership.
What can I log as CPD? Any form of learning or development that benefits you in your professional environment. If you have learned something new, then this is CPD. Examples include: ● using the CIPP’s Advisory Service ● taking part in on the job learning ● reading News On Line, Professional in Payroll, Pensions and Reward or another publication ● networking with new or existing contacts ● attending training courses and/or events. How do I log CPD? 1. Log into the members’ area of cipp.org.uk ‘My CIPP’. 2. Find ‘My CPD’ on the drop-down options. 3. Click on the blue box ‘add a new record’. 4. Complete the form, record your activity and click ‘submit’. n Contact us If you require any help with your CPD please email membership@cipp.org.uk or call 0121 712 1073.
See what we can offer you
Viewonline today at cipp.org.uk
* Chartered members are required to log 40 CPD points to renew.
cipp.org.uk @CIPP_UK
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Issue 44 | October 2018
| Professional in Payroll, Pensions and Reward |
CAREER DEVELOPMENT INSIGHT
Workplace learning strategy
Fredrik Högemark, chief information officer at findcourses.co.uk, outlines design and delivery
A s more organisations focus on return on investment (ROI), implementing an effective learning and development (L&D) strategy to aid engagement and retention has never been more important. Inclusive workplaces that place a high value on equal opportunity and continuous learning are best placed to attract a wide pool of talent and in keeping valued existing employees. According to jobs site Glassdoor (https://bit.ly/2raiVKU), the main reason people leave a job is to go to a company with a better culture and development opportunities. This makes it essential for companies to showcase what they can offer top talent from the start. To tempt people to your business management should provide detailed job descriptions that clearly communicate prospects for training and development. This is because 87% of millennials (https://bit.ly/2xwRuiI) rate professional or career growth and development opportunities as important to them in a job; so introducing a rotational scheme for those entering your business can be a good way to make your company stand out from the crowd. Increasingly, your business’s commitment to employee advancement will be recognised, either by word of mouth or through feedback on sites such as Glassdoor. As a result, universities and recruiters may actively promote your organisation to ambitious graduates based on the quality of its training and reputation. For businesses looking to improve retention, efforts should be focused on talking with current and prospective staff about their aspirations for progression. The better informed an organisation is, the more equipped they will be to tailor learning activities to the needs of its workforce. Businesses must be wary about dictating which training employees should pursue. Employees should feel encouraged to identify the individual areas they need
training in and what will be most valuable to them in the long-term. There are several methods for this, the easiest of which is normally to conduct an internal survey to accumulate opinions. While some employees will choose not to participate, it will give a good overall view of areas for improvement. Another option is to conduct focus groups or speak to managers to obtain feedback from their own teams or individuals. You may be able to achieve better insight here too, as a chat with a manager may garner more in-depth, personal information than a check-box survey. A study (https://bit.ly/2xFg0ym) found mentorship is a beneficial and impactful practice, particularly for women and minority employees. L&D is a process, not a test to pass or fail, and the merits of training – professional development, fulfilling career aims, more effective day-to-day work – must be conveyed to motivate employees. Developing a formal mentoring programme, allowing incoming or junior employees to be paired with senior executives – or those with different skill-sets – can create effective connections and enable learning from past experiences. Of equal value is ‘reverse mentoring’, involving collaborative, informal training between different employee generations. This offers an opportunity for businesses to broaden and grow some of the skills of all employees in an inexpensive and time- efficient way. Human resources teams can help by encouraging and facilitating these opportunities among staff. One way is by introducing ‘inclusion allies’ (https://pwc. to/2xEa7BA) – designated executives who support and advocate for people of different workplace demographics – to create a positive and progressive working environment. When developing a L&D strategy, managers must consider the disposition of each learner and take into account
diversity and generational differences in the workplace. For example, according to a PwC report, just 6% (https://bit. ly/2xsFLCP) of millennials would value formal classroom training. Younger employees are more comfortable with technology so may be receptive to online courses. Although millennials and generation Z are set to make up half the workforce by 2020 (https://bit.ly/2MvHwnZ) you must cater for the older demographics who may prefer more formal training structures. These strategies should not be seen as ‘fixed’ for each generation, as every individual has unique preferences when it comes to how they learn best. Businesses should prepare for this by introducing a mixture of training options, from independent advancement, group tasks or peer-to-peer learning. One study (https://bit.ly/2DrdgKS) on workplace training discovered that while 62% immediately applied their learning to a role, only 44% were still using what they’d learnt after six months, falling to just 34% after one year. Participants are often assessed as competent in a training room environment but still need time and assistance to transfer learning to their roles. The success of results cannot be fully assessed until it’s clear staff are confident using their new skills. But how can businesses know when that has been reached? Encouraging ongoing feedback through employee surveys, focus groups or an internal online forum, is a good way to start calibrating such insights. Managers should also be tracking performance through agreed key performance indicators and holding regular one-to-ones to check on staff progress. Employees need to feel valued by employers, who can achieve this by delivering a diverse and flexibility training programme. If your strategy is successful, you will not only see strong ROI, but improved retention and engagement throughout the business too. n
| Professional in Payroll, Pensions and Reward | October 2018 | Issue 44 12
Cipp update
CIPP update
CIPP launches online statutory sick pay course THIS UNIQUE online learning experience is essential for busy payroll professionals who need to refresh their knowledge and understanding relating specifically to statutory sick pay (SSP) or for those new to payroll who need to learn about SSP within a short timeframe. The course is delivered completely online and consists of: ● online presentations ● knowledge tests to clarify understanding ● reading material ● simple and complex examples of calculations ● gamification ● flash cards to test anacronyms and definitions. Following your interaction with this course, you will be able to: ● explain the criteria surrounding SSP ● explain the qualifying criteria for SSP ● accurately calculate SSP ● explain the actions required when an employee is not entitled to SSP. To book this online learning experience, visit cipp.org.uk/training or email info@ cipp.org.uk for more information. CIPP short-listed for the best UK association at the Association Excellence Awards THE CIPP has been short-listed for the UK Association of the Year at the Association Excellence Awards, taking place at the Kia Oval on 12 October 2018. Founded in 2014, these awards have gone from strength to strength and are the acknowledged accolade to recognise and reward the hard-won achievements of UK trade bodies, professional membership organisations and associations. Bringing together an outstanding panel of judges, representing associations from every sector, these awards will recognise individuals, teams and initiatives and highlight
Croner provides employment law advice to CIPP members THE CIPP is delighted to announce that CIPP members can now benefit from employment law advice supplied by Croner HR. CIPP members who call the Advisory Service with queries which overlap into employment law will now be transferred to a CIPP employment law helpline delivered by Croner HR. Commenting on the relationship, Helen Hargreaves MSc ChFCIPPdip, associate director of policy at the CIPP said: “We are pleased to be working with Croner HR to enhance the CIPP’s Advisory Service. Croner has been helping organisations for over seventy years and can provide CIPP members with impartial and accurate employment law advice. As experts in payroll – but recognising that the lines between payroll and HR can be blurred when it comes to the Advisory Service – we wanted to work with someone who could complement and enhance our Advisory Service, and Croner seems to be an excellent fit.” The Advisory Service is available to all CIPP members on 0121 712 1099 or can be emailed at advisory.service@ cipp.org.uk .
excellence in how trade bodies operate and serve their members. The CIPP last entered, and was successful, in this category in 2016.
Martyn Faulkner FCIPP 18 February 1951–27 August 2018 MARTYN STARTED his career in payroll as a junior at Stockport Council, moving on to Trafford Council as a team leader and later as a payroll manager. In 1992, he moved from local government to the private sector, where he worked for Hartshead Limited to set up a payroll bureau, moving to Aon in 1998 as UK payroll manager. In 2003, Martyn started his own consultancy company, which gave him the opportunity to work with a variety of his clients until retirement in 2016.
Martyn was a member of the Association of Payroll and Superannuation Administrators (APSA) from 1982, later becoming a fellow. APSA merged with the Institute of British Payroll Managers in 1998 which is now the Chartered Institute of Payroll Professionals (CIPP). From those early days Martyn had been involved in supporting and developing many members and students, taking roles as an author for examinations, tutor, examiner and a trainer. In addition to his work for the CIPP, Martyn was one of the inaugural committee members of the Electronic Exchange with Government User Network, as well as having been a member of various HMRC and Department of Social Security forums during his career. A vocal member of the payroll community, Martyn was heavily involved in discussions and debates on some of the recent changes to our profession, such as automatic enrolment and real time information. Martyn was a real advocate and ambassador for the payroll profession, and influenced change and development within the profession, whether through his involvement in government consultations or his work with the CIPP to develop the skills and knowledge of payroll professionals throughout their careers. Martyn had taken retirement in 2016 to enjoy time with his family, and sadly passed away on 27 August 2018. His presence within the payroll community will be missed.
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Issue 44 | October 201
| Professional in Payroll, Pensions and Reward |
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