Official publication of The Chartered Institute of Payroll Professionals
in Payroll, Pensions & Reward
Issue 55 November 2019
Staff development
Employment allowance proposals Enlightenment
Reconciling workplace pension
Outsourcing to in-house A realisable quest
payments A fool’s errand
CIPP update | Policy hub | Career development
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“Whether something is sensible or not is subjective. What is sensible to me might not be for others.” Radhika Apte (1985–) (http://bit.ly/32IFl93)
It’s an adage that nothing stays the same forever. Well, things in payroll can change very quickly – even ‘before the ink dries’. Within a few days of receiving the article ‘Employment allowance proposals’ (page 17), the author emailed to say HM Revenue
government proposals achieving enlightenment. Does the extreme foolishness of imagining state aid amounts could be reportable in RTI returns, perhaps encourage comparison with Monty Python scripts? See page 40 and the front cover for connection. This issue sees the Confessions series pause for a sabbatical. It is hoped the author will return in twelve months’ time and resume the series.
& Customs had that day sent news of fundamental changes to employers’ reporting requirements. So, although it meant an extensive (and unwelcome) rewrite of the article, the change in reporting requirements was very sensible – and very welcome. The author also rightly refers to “direction of travel as it relates to government’s use of the real time information (RTI) system”. There have been several attempts to extend RTI reporting beyond pay and benefits. Our Institute has yet again achieved sensible change to
Mike Nicholas MCIPP AMBCS (editor@cipp.org.uk) Editor
Chair’s message
The theme of this month’s magazine is one that I have enjoyed across my whole career. Managing teams and leadership is all about being responsible and taking decisions for the benefit of the business and its future. One of the most rewarding aspects of
business may only send one delegate to a business conference, in which case it is essential that the delegate is able to consume, digest and then communicate effectively as much as possible with those not able to attend. With a discipline such as payroll, pensions or reward, the legislative landscape is constantly changing, so preparing yourself to assimilate information is as much a part of career planning as softer skill development. Becoming certified provides a platform to build upon, as it demonstrates that you have showed your diligence and persevered. Learning comes in many forms, as does continuous professional development. Look for opportunities wherever you can and remind your employer that attendance at many business events comes with the added benefit of learning. I frequently use the adage, that ‘every-day is a school day’.
Good to see so many of you at our flagship Annual Conference and Excellence Awards CEO’s message at the Celtic Manor in Newport in the beautiful Welsh countryside. Following member feedback, we’re delighted to announce that we have secured Celtic Manor as our venue for 2020, 2021 and 2022. I look forward to seeing many of you again at this wonderful location. And, of course, our conference continues to provide continuous professional development by covering legislative and current topics in all the workshops. The plenary sessions once again introduced our global visitors, a further reminder of the all-reaching effect of the payroll family. Excellence was once again rewarded at the awards ceremony and the CIPP congratulate all the worthy winners and share in celebrating their success. A supplement of the conference and awards is provided with this month’s magazine. At the 2017 events, Eira Hammond, CIPP chair then, announced leadership is witnessing the development of team members through both professional and on-the-job experience. I have been fortunate enough to build several mentor and career plans to support individuals who may have joined with limited technical experience and have proved themselves to have the right aptitude and attitude for learning and personal development. A number of those mentees have gone on to have significant careers in the industry. Very well done, you know who you are. Having an open mind and a desire for learning as well as recognising that there is always something new to learn is an essential ingredient to a growth mindset. Taking on the job opportunities to learn is also important and recognising that events put on such as ‘lunch and learn’ are a great way to pass on information for the benefit of others. It is often the case that a
Jason Davenport MCIPP MIoD (jason.davenport3@cipp.org.uk) Chair, CIPP
individual Chartered status (Chartered membership) for members meeting the necessary criteria. Since then we have received many applications and, as befitting our industry, the criteria in selecting Chartered members has been vigorous and thorough. It is pleasing to note that currently the Institute has thirty Chartered members – a tremendous success. To view members, have a look at the website cipp.org.uk/chartered – an aspiration for you all. Finally, November is a further time for celebration as we hold our graduation ceremony in Birmingham for those who have successfully completed our university-approved qualifications. Well- deserved congratulations to all.
Ken Pullar FCIPP (ken.pullar@cipp.org.uk) Chief executive officer, CIPP
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| Professional in Payroll, Pensions and Reward |
Issue 55 | November 2019
in Payroll, Pensions & Reward PROFESSI NAL
Also available online at payrollpensionsandreward.org.uk
Contents
November 2019
33
Staff development
Jerome Smail conveys
Features
8
16
9
Financial awareness and wellbeing in the workplace Glyn King discusses
Outsourced to in-house Jason Davenport discusses
Almost right is good enough Chris Griffiths on making ideas happen
17
20
22
Employment allowance proposals SamanthaMann reveals
Risks and complexities affecting UK payroll Caroline Garstang presents
BRR – public sector shivers Tim Bridgett reviews
| Professional in Payroll, Pensions and Reward | November 2019 | Issue 55 2
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Chief executive officer Ken Pullar FCIPP CIPP board of directors Jason Davenport MCIPP MIoD Stuart Hall MCIPPdip Ros Hendren MSc FCIPPdip CMgr FCMIdip FHEA Dianne Hoodless MSc ChFCIPP FHEA Liz Lay MSc FCIPPdip Karen Thomson MSc ChFCIPP FHEA Cliff Vidgeon BA (Hons) FCIPP CMA ACIS Ian Whyteside MCIPP FMAAT ATT Editor Mike Nicholas 0121 712 1000 | editor@cipp.org.uk Advertising Jill Bonehill 0121 712 1033 | advertising@cipp.org.uk Design James Bartlett and Nicole Davis design@cipp.org.uk Printing Warwick Printing Company Ltd
Evolving HMRC compliance activity Susan Ball explains
How UK payroll experts are using technology Brian Sparling reveals
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28
Disclosure, adjustment, status Nicola Mullineux outlines
Employees missing out Danny Done discusses
32
36
Time to invest Jason Clark discusses
The case for staff training Jade Linton outlines
Useful contacts
39
Reconciling workplace pension payments – a fool’s errand? Henry Tapper discusses 40
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 info@cipp.org.uk 0121 712 1000
The next Pensions Bill Ian Neale forecasts
Regulars
01 Editor’s comment, Chair’s andCEO’s messag e
16 Payroll insight 27 Industry news 28 Reward insight 32 Feature articles Staff development
Events, news and developments
04 Membership insight On your behalf, Advisory 08 Career development insight PAS case study, Diary of a student 12 Movers and shakers 13 CIPP update 14 Events horizon 15 Payroll news
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 2019. 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.
38 Pensions news 39 Pensions insight 48 Confessions of a payroll manager
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| Professional in Payroll, Pensions and Reward |
Issue 55 | November 2019
MEMBERSHIP INSIGHT
On your behalf
Policy team update
The policy team reports on consultation developments and also on questions about company car tax
Student loans A meeting of the Student Loan Consultation Group, held in September, saw stakeholders get together with officials from the Department for Education (DfE), the Department for Business, Energy and Industrial Strategy (BEIS), HM Revenue and Customs (HMRC) and the Student Loan Company (SLC). This Group meets regularly throughout the year and has proved to be an effective forum for communicating progress and exchanging views on the operation of student loans. It is no secret that from April 2021 Scotland will have a new student plan in operation. Work is in progress to ensure readiness for this new system that will see all Scottish borrowers moving over from the existing plan 1 (where applicable) to the new plan which has yet to be named. Identification of Scottish borrowers is ongoing. At first glance it would be easy to think Scottish rate taxpayers can only be Scottish borrowers, but life is never that simple thanks to the transient nature of further education students. Research by HMRC has revealed that 70% of new employees are not returned with a ‘new starter checklist’. This leads on to discussion about the inadequacy of guidance to be found on GOV.UK which still indicates that the starter checklist is a direct replacement of the form P46 – which as we all know, it is not. Representatives from all government departments remain committed to
achieving improvements to the editorial guidelines of the Government Digital Services and to guidance in all areas of student loans. As borrowers approach the end of their loan repayment term, they can apply to repay via direct debit thus reducing the risk of overpayments accruing. Overpayments are avoidable by using this method and yet only 35% of borrowers take advantage of this option. Processes are in place to ensure that credit balances are monitored so that refunds can be made where possible. Discussion about the usefulness of employer prompts continues in a bid for HMRC to establish why so many appear to be ignored. Your experience and views on this would be welcome; please send to policy@cipp.org.uk . ...easy to think Scottish rate taxpayers can only be Scottish borrowers, but life is never that simple... Meanwhile, HMRC’s Software Developer Support Team and the DfE have confirmed that the thresholds from 6 April 2020 will be: ● ● plan 1 will increase from £18,935 to £19,390
● ● plan 2 will increase from £25,725 to £26,575 ● ● postgraduate loans thresholds will remain at £21,000. NMW consultation forum For some years the policy team has lobbied for a permanent stakeholder forum to be established to enable regular dialogue between stakeholders and BEIS, which are the policy owner of national minimum wage (NMW), and HMRC which is responsible for compliance (including enforcing the correct payment of arrears for NMW where non-compliance is found). More recently we would expect this forum to also have representation from the Department of Labour Market Enforcement (DLME). Lobbying initially began with HMRC Compliance Reform Forum (CRF) and at every opportunity we have made this request, to BEIS, to the Low Pay Commission as part of their annual reviews, and also to the director of Labour Market Enforcement, Sir David Metcalf, as part of his annual strategy call for evidence. We are pleased to report that at the time of writing we are looking forward to the first meeting which is expected to launch a NMW stakeholder forum. Company cars During the Budget of 2018 it was announced that a review would be launched on the impact of the worldwide harmonised light vehicles
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| Professional in Payroll, Pensions and Reward | November 2019 | Issue 55
Policy hub
The new WLTP emissions test regime only applies for cars registered on or after 6 April 2020. Pages 14–16 of the summary of responses to WLTP (http:// bit.ly/2Onub5f) show the relevant rates based on the date of registration of the car. ...when the car was registered and when the OpRA was entered into... Q: We know that cars are protected from optional remuneration arrangements (OpRA) until April 2021 unless there is a change to the vehicle, a variation to the terms of the contract or if the car has a CO2 of 75g. How would OpRA be affected on the following scenarios? (i) The employee has a company car under a salary sacrifice arrangement, and it is changed within year to a car with CO2 emissions of less than 75g/km. Would this still be protected due to the car’s CO2 emissions or because there was a change to the vehicle would the OpRA rules now apply? (ii) The employee has previously given up the right to car allowance for the benefit of a car which has CO2 emissions of less than 75g/km. Mid-year, the employee changes the car to a car with the same CO2 emissions. Would this mean OpRA would now apply (due to the change), or because of the CO2 emissions remaining below 75g would this still be protected? (iii) A person has a company car and has done so without the offer of a cash alternative. Mid-year, the company offers the employee a choice of keeping the car or receiving a car allowance. The allowance was not previously offered at the time the car originally was. Would OpRA now apply as a cash alternative has been offered? If so, how would this be proportioned for reporting purposes? (iv) We know that when a car is currently being impacted by OpRA and when a change happens mid-year, the amounts are proportioned to the time the car has been available. Would the same process apply for when OpRA didn’t apply but
test procedure (WLTP) on vehicle taxes which are linked to carbon dioxide (CO2) emissions. This followed the 2017 autumn Budget where it had previously been confirmed that cars registered from April 2020 will be taxed based on WLTP figures. It is believed that WLTP will be more representative of real-world driving conditions, compared to the previous test known as the new European driving cycle (NEDC). The result of this change means that it is likely that emissions would increase which would impact vehicle excise duty (VED) and company car tax. The Review of WLTP and vehicle taxes was published on 19 December 2018 with the consultation closing on 17 February 2019. The government has since published a summary of responses (http://bit.ly/2Onub5f) confirming the following: ● ● the existing VED rates will be maintained on introduction of WLTP from April 2020 ● ● a call for evidence will be published later this year seeking views on moving towards a more dynamic approach to VED which recognises smaller changes in CO2 emissions ● ● most appropriate percentages will be reduced by 2ppt in 2020/21 before returning to planned rates over the following two years – increasing by 1ppt in 2021/22 and 1ppt in 2022/23. This applies to company cars first registered from 6 April 2020 ● ● all zero-emission company cars will attract a reduced appropriate percentage of 0% in 2020/21, 1% in 2021/22, before returning to the planned 2% rate in 2022/23. In response to the increasing number of queries being received from members, the CIPP advisory team recently posed several questions regarding these changes and received responses from HMRC: Q: With the changes to how cars are being tested and some vehicles being re-tested for their CO2 emissions, when it comes to working out the value of the vehicle, which figure would you use? The new CO2 value or the original as stated on the registration document? This will also affect fuel charges so would have a big impact if the new CO2 was to be used.
then did? (For example, April–June no effect of OpRA so the value of the car is reported. July–March, OpRA applies, therefore proportion the amount of ‘cash’ given up that same period the new car was available? In response, HMRC focuses on when the car was registered and when the OpRA was entered into: ● ● OpRA entered into on or before 5 April 2017 – Regardless of when the car was delivered, the OpRA rules do not apply, unless there is a variation or renewal (including automatic renewal) of the arrangement, at which point the new rules apply from the date of variation or renewal (see below). The CO2 emissions are based on the traditional (NEDC) emissions test values, and will continue to do so, even after 6 April 2020. ● ● OpRA entered into on or after 6 April 2017 but on or before 6 April 2021 – car registered on or before 5 April 2020 – For cars with NEDC emissions of CO2 75g/ km or less, there is no impact from OpRA. For cars with emissions of CO2 76g/ km or more, the OpRA rules apply. The CO2 emissions value is based on the traditional (NEDC) emissions test values, and will continue to do so, even after 6 April 2020. ● ● OpRA entered into on or after 6 April 2017 but on or before 6 April 2021 – car registered on or after 6 April 2020 – For cars with WLTP emissions of CO2 75g/km or less, there is no impact from OpRA. For cars with emissions of CO2 76g/ km or more, the OpRA rules apply. The CO2 emissions value is based on the new (WLTP) emissions test values. ● ● All OpRAs from 6 April 2021 – All ‘grandfathering’ ends for pre-6 April 2017 OpRA cars with NEDC emissions of CO2 76g/km or more. Cars with emissions of CO2 75g/km or less (NEDC if registered on or before 5 April 2020, or WLTP if registered on or after 6 April 2020) are not impacted by the OpRA rules. n Have your say As ever your experience and views gained ‘at the coal face’ are vital and we value hearing from you at policy@cipp.org.uk .
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Issue 55 | November 2019
| Professional in Payroll, Pensions and Reward |
MEMBERSHIP INSIGHT
A: The standard weekly rate of SMP usually increases every year, on the first Sunday in April. In 2019/20, the rate of SMP increased on 7 April 2019. The increase applies to those still within their SMP payment period (‘maternity pay period’). As SMP is a weekly payment, it depends on when the SMP commenced as to when any increase in the SMP rate should apply. For example, if an employee commenced her SMP on a Thursday, her SMP-week runs from Thursday to Wednesday which would mean the increase would not operate until SMP-week commencing Thursday 11 April 2019. Q: We have taken on a new payroll client who has asked if we, as an agent, can set up payrolling of benefits through their payroll? A: Unfortunately, you cannot do this. Only an employer can set up payrolling of benefits. As an agent you do not have the authority to do this on their behalf. Q: I have recently received a letter from a firm of accountants regarding an employee who is based in Scotland. The letter states that the employee has a protected trust deed set up and that we, as the employer, must make deductions from the employee’s pay and send the amounts deducted directly to them. (Scotland) Act 2016 gives the trustee powers to apply to the employer for a deduction where a protective trust deed (PTD) is in place and where the employee has failed to pay the trustee on two consecutive occasions. A PTD is a formal voluntary agreement between an individual and their creditor/s where over a minimum of 48 months the debt is repaid. This is governed by the Protective Trust Deeds (Scotland) Regulations 2003. The individual is then required to make payments to a trustee. Under regulation 14, the trustee can apply to the employer using either a Form 4A or Form 4B to make deductions from the employee’s earnings and to send the amounts to the trustee. What you would need to ascertain is that the firm of accountants are in fact the trustee before you apply the order. It is also good practice to inform the employee that you are making the deduction. Is this allowable and correct? A: Section 174 of the Bankruptcy
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 run a payroll for a client, which consists of three workers. The client wants to employ his daughter, who is fourteen, for one day a week during the school holidays, such as Christmas and summer holiday periods. Is it necessary to put the daughter on the payroll during these periods? A: I can confirm that you do not have to put this young person on the payroll. This is because when employing and paying children/young people who are under sixteen, they are not entitled to national minimum wage (NMW) and their earnings are not liable to class 1 National Insurance contributions (NICs). Providing the individual is earning under the pay as you earn (PAYE) personal allowance threshold, you would not have to pay her through the normal payroll you run. Q: If an employee wanted to pay the whole of their monthly salary into a pension scheme via salary sacrifice would this be allowed? A: No, it would not be allowed. An employee cannot pay the whole of a monthly salary into a salary sacrifice pension scheme if he or she is entitled to be paid the national minimum wage (NMW). The salary sacrifice involves a change to the employee's rate of pay. However, subject to scheme rules, it may be open to the employee, employer and pension scheme to agree to one or more substantial pension deductions. If the scheme operates the ‘net pay’ arrangement, such substantial deductions would affect the tax due in the period (perhaps reducing it to nil or negative).
There would of course be no effect on class 1 NICs payable at all, so primary and secondary NICs would be due on the salary. Before agreeing to a substantial deduction, you should also investigate and consider the potential impact on other deductions (e.g. season ticket loan, charitable giving, etc) as the pension deduction might be defined to take precedence over them. Will, for example, arrears of deduction accrue, and entitlements be affected? But such considerations are relevant in any salary sacrifice situation, anyway. Q: As we have a leap year in 2020 can you explain how we should calculate payrolled benefits? Should we pro rata for 366 or 365 days? A: When working out the cash equivalent for a benefit, you would always use the days available in the tax year. During a leap year, these days are increased to 366; therefore, you would use 366 days for 2020 to calculate when the benefit is unavailable (where applicable). Once you have worked out the cash equivalent of the benefit, you divide that figure by the number of pay frequencies left in the tax year. Q: We have an employee who has received statutory maternity pay (SMP) during the two tax years 2018/19 and 2019/20. When preparing the SMP payment schedule, should the SMP payable in 2019/20 be paid at the new statutory rate of £148.68 and not the 2018/19 rate of £145.18?
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| Professional in Payroll, Pensions and Reward | November 2019 | Issue 55
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Q: We currently operate ‘IR35’ requirements for several personal
agreement) and that as the employer we are going to pick up the tax bill. To gross up, I will apply 0T tax code, resulting in the values being substantial. If the individual in the future queries his tax paid in the year, and his allowances are applied, it will be apparent the tax collected on his earnings are incorrect and a refund would apply. Therefore, if a refund is calculated, will it be paid to us as the employer who paid the tax on the employee’s behalf or would it be paid to the employee? A: Any tax that has been overpaid will be refunded to the ex-employee. The employer has deducted tax from the employee via PAYE in accordance with the tax code applied. HMRC would not know that the employer has grossed-up the payment so that the employee can receive an agreed amount of net pay. In the eyes of HMRC, the amount processed as gross is the employee's earnings in that period. Q: We have recently taken on a new member of our sales team who will be using their own fully electric car for business use. We understand that when using a fully electric company car for business miles, each mile is reimbursed at a rate of 4p per mile. But what rate is applicable for a private electric car? A: The rates that are reimbursed for business miles when travelled in a private car are called mileage allowance payments (MAPs). The MAPs are in relation to vehicle type rather than fuel type. The rate paid for every qualifying business journey is 45p for the first 10,000 miles and 25p thereafter, without attracting tax and National Insurance contributions (NICs). This is the maximum you can reimburse your employee without tax and NICs liabilities. If you pay more than the approved amounts, then you would need to apply PAYE to the difference either via PAYE or report in a P11D return. If you decide to pay less, then the employee could claim tax relief directly from HMRC. n
service company consultants who are working for us. Should these consultants each receive a P60 certificate? A: Referring to guidance, yes you would issue a P60 certificate, but there is no effect on the employment status of the individuals. The reason for this is that the payments made via pay as you earn (PAYE) are ‘deemed employment payments’ and the figures need to be reported in a P60 so that the worker can enter them into their self-assessment tax return. If the worker then becomes an employee or is also an employee at the same time that they are a contractor, and all within the same tax year, then you would enter both figures in the same P60. Q: Would we be able to cover the cost of a van benefit in our PAYE settlement agreement (PSA)? A: Vans or company cars cannot be covered in a PSA as they do not fall into the available categories. A PSA can be used to cover things that would fall into the categories of minor, irregular or impracticable benefits. Q: We have an employee who is receiving SMP. Her maternity pay period does not end until April, but she has informed us that she has been offered a new job and will be leaving our employment. What happens to her SMP? A: An employer’s liability to pay SMP ceases if the employee starts to work for a new employer after her baby has been born. Ask your employee when she will be starting employment with the new employer as this is the date up to which she should be paid SMP. Remember that SMP is paid in weeks, meaning that she can only be paid for full SMP-weeks, not part-weeks. As with all leavers, you must process her final pay to include any holiday pay that she has accrued during the period of maternity leave when she was still employed by you. You would not include the period in which she was no longer your employee, even if SMP is due for this period.
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*correct at time of publication
| Professional in Payroll, Pensions and Reward |
Issue 55 | November 2019
CAREER DEVELOPMENT INSIGHT
Financial awareness and wellbeing in the workplace
Datagraphic’s Glyn King discusses howpayroll is well-positioned to support this work
A s automation technology reduces time spent on manual processes, payroll professionals can focus more on strategic tasks that have a positive impact on employee experience. Three quarters of UK employees have some sort of money worries (according to statistics revealed by Close Brothers Asset Management). Employee wellbeing is a top priority in most organisations and one of the biggest contributors to stress and anxiety is related to finances. Employees struggling with this can see a reduction in productivity, ability to concentrate, and absenteeism. There’s a clear case for taking action workplace. But how can employers help employees avoid financial difficulties, and whose responsibility in the workplace is it? The answer is everyone. All departments and management should help improve employee wellbeing. But payroll can specifically help with financial wellbeing, as you have the data and knowledge at your fingertips to help provide guidance to employees. If you use automation technology to help reduce the time spent on manual, repetitive payroll tasks then you’ll have more time to focus on financial wellbeing initiatives that can have a positive impact on employee experience. Often, financial education for those entering the workplace straight from school is limited. And for other employees, changes in their personal lives can create periods of financial hardship. For these groups, managing income and having to budget may be new or difficult. Payroll can offer advice to help employees better understand their payslips, make clearer which reward and benefit options are available, and help them save for the future. and supporting employee financial wellbeing and creating a healthy
Here are some simple ways payroll professionals can help aid financial awareness and wellbeing in the workplace: ● ● Understanding payslips – Every week or month you provide employees with a payslip which contains lots of numbers and short-coded letters. When was the last time you explained the details of a payslip to an employee? You could help employees in their financial understanding by providing a quick reference guide with the payslip which explains what each section means. Help them understand the difference between gross and net pay, and the makeup of variable pay. ● ● Understanding rewards and benefits – A recent Aviva survey found 18% of employees don’t take full advantage of the benefits on offer due to lack of information. Communicating and making clear which reward and benefit options employees are entitled to can help make a big difference. For example, schemes such as salary sacrifice offer ways to save money, or childcare vouchers help new parents return to work. When communicating the different options available, try to be as relevant as possible to each individual employee’s needs. You can achieve this by asking your employees what benefits they would like to receive through surveys and focus groups. You can match your health and wellbeing package to what knowledge at your fingertips to help provide guidance to employees ...you have the data and
your employees really want, which will have an immediate impact on employee engagement. ● ● Understanding saving for the future – Employees making savings for the end of their career can feel anguish if they lack understanding about the process, what they are entitled to or the value of saving for retirement. Working with your organisation’s pension providers, you can help communicate and educate employees about auto-enrolment and the pension scheme(s) available. You could even offer one-to-one drop in sessions where employees can come and talk with you or a representative from the pension provider to discuss any questions they might have or talk through their options. ● ● Understanding the drawback of pay on demand – Take the time to research and understand new concepts such as pay on demand, which lets workers access a percentage of their salary/ wage before their official pay day. Is it suitable for all your employees? It might be an attractive option to employees who are struggling financially, but it will require even closer financial guidance and monitoring by the payroll team. You would need to make sure employees who frequently request to access pay early don’t get trapped in a cycle of living outside of their means, having a detrimental impact on their financial wellbeing and productivity. employee motivation and their mental health can be significant. But by offering advice, using information you already have access to, and communicating effectively with employees can have a real positive impact. It’s time for the payroll profession to step up and make a difference. n Time to make a difference The impact of financial worries on
| Professional in Payroll, Pensions and Reward | November 2019 | Issue 55 8
Career development insight
Almost right is good enough
Chris Griffiths, founder of OpenGenius and author, argues that getting started is key tomaking your ideas happen
W hile the majority of people know that attaining perfection simply isn’t possible, ‘perfectionism’ continues to be a stunting and common trait for many individuals. Though it may sound like a faux-problem, perfectionism can actually be a terrible blocker when it comes to creativity; in serious forms, it can trigger a range of issues from writer’s block to fear of failure. This is because, by its very nature, the perfection being sought after can never be fulfilled. No noted artist has ever shared work with the world declaring they have achieved something perfect. In fact, contrary to this, it is often the imperfection and flaws which are most widely celebrated in the artistic realm. Taking this into the workplace arena, trying to create a faultless plan to implement your ideas will likely result in no plan at all. This is why learning to accept both ideas and a strategy that are ‘almost right’ is essential. Some of the best ideas of recent times probably sounded crazy or impossible when first suggested. When Apple created the iPhone, it went against everything the market was telling them: they designed a phone which was larger, with worse battery life and a bigger price tag than anything else dominating the industry at the time. When the idea was first proposed to create a phone without a keypad – and when this idea resulted in a product with all the aforementioned ostensible issues – a ‘perfect’ standard would have resulted in scrapping this idea and going back to the drawing board. And yet, with innovation and strategy the iPhone has become the most disruptive and transformative mobile phone ever released. This is a classic example of the difference between good
ideas, and perfect ones.
Looking into fostering change management skills (http://bit.ly/2M3xAVe) can assist greatly with this – and will be a valuable skill that will serve you well in all manner of situations. While a perfectionist may struggle with relinquishing control over their ideas, allowing them to grow in a real-world situation may just let them blossom into something even greater. Nonetheless, having a plan-B that can be rolled out if your original plan doesn’t go as expected is always a good safeguard if you want to keep up speed and learn to roll with the punches. Overall, it’s key to remember things are ever-changing. Even if you were to uncover an idea or plan that seemed ‘perfect’ at the time, when it comes to implementation that perfection may quickly fade under the strain of unforeseen circumstances. If you’re going into unknown territory – which is likely if your idea is innovative – how can you possibly know beforehand what the ideal plan looks like? By learning to adjust and work under ‘almost right’ circumstances you’re far more likely to get a greater number of ideas off the ground. Perhaps they won’t all work as hoped, but failure is another key element of creative success. So, by actually putting yourself out there and trying your best to keep generating ideas and plans you significantly increase your chances of accomplishment. After all, winners fail more than losers even try. So, stop waiting around for crystal blue skies and still waters, all you need is for the wind to be blowing in the right direction. n Chris Griffiths is co-author of The creative thinking handbook – Your step-by-step guide to problem solving in business (https://amzn.to/324l39B).
While ideas are wonderful in themselves, the next step has to be taken otherwise they lose all value. The ideation process begins with knowledge; you need to read up on the area you’re looking to innovate in, then walk away entirely. Practising focussed daydreaming (http:// bit.ly/33idbkT) is not only an important way of uncovering new ideas, it removes the temptation to eliminate the seeds of good concepts just because they are imperfect. To practise this, do something else after you’ve done your reading (e.g. go for a walk or doodle); whatever the activity it should take you away from the subject at hand so your subconscious can work overtime. You’ll soon find fresh and original ideas waiting for you, ready to be refined and actioned so you can turn your daydream into a reality. ...classic example of the difference between good ideas, and perfect ones To take these ideas from inception to implementation you need to get a wiggle on. If you wait around for perfect conditions and perfect resources, you’ll likely never get started. This isn’t to say you should begin your plan in terrible conditions, just that ‘nearly there’ is enough. To commence an ‘almost right’ plan, make sure your strategy is agile and adaptable. Inevitably, unexpected things will crop up and your plan needs to be flexible enough to go with the flow.
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| Professional in Payroll, Pensions and Reward |
Issue 55 | November 2019
CAREER DEVELOPMENT INSIGHT
Diary of a student…
Sophie Chapman LLB (Hons) MCIPPdip Head of payroll and pensions, University of East Anglia
leave from work which I have dedicated to making a good start on my assignments or revision uninterrupted. I’ve then found it easier to work the odd hour here and there. Withmodule one completed of your course, howdo you think you did andwas it what you expected? I really enjoyed it. Having studied for the past six years I already knew that working and studying alongside was a challenge, but it had become part of my routine. It was really good to be studying topics which I encountered on a daily basis and be able to network with other like-minded professionals. Howdid you see the rest of the courseworking out andwere you getting used tomaking it part of your routine? I saw it working out well. I found it easier studying something connected to work and with which there was more group interaction. For someonewho is thinking about studying for a CIPP qualification, what would your advice be to them? Go for it! Without this qualification I wouldn’t be where I am today. It is a really good qualification that opens doors and lifts your profile. Study hard and get the most out of every job you work in; any role is possible. n
A brief background I bought my first home last year in
Which course did you study and why did you choose it? I studied the Foundation Degree in Payroll Management taking the RPL (recognition for prior learning) test before completing years two and three. And did the fact that the CIPP is Chartered or recognisedwithin the industry influence your decision to enrol with the CIPP? Yes, it did, I hadn’t considered doing any more study but once this was suggested to me and I did some more research, the fact that the CIPP being the recognised qualification and institute for my industry really encouraged me. How important is this degree in relation to your future career? Very important – it was on the essential criteria of my latest role and I doubt I would have been able to move into management without it. Howdo you copewithwork-life balance and study? I am pretty good at work-life balance and study as I have had enough practice. I have always made a point of taking a day’s
Dereham, where I grew up, and live there with my black pug Percy close to my family. Outside of work having sung and danced on stage when I was younger I enjoy theatre trips along with eating good food and spending time with friends and family. Can you give us an insight into your career and qualifications background? I left sixth form working as a care assistant having not gained a place to study law at the university for which I now work. Injury forced me out of the role and after a period of rehabilitation and searching for a new job I began a role as an accounts assistant. It was when my financial controller moved and wanted to take me with him that the opportunity of payroll came up: “the lady who does the payroll is leaving… do you fancy giving it a go?”. And that was that. Since then I have worked in a housing association, local government and the National Health Service before gaining the role I have now at the University of East Anglia. Alongside all of this I achieved my goal of graduating with a law degree from the Open University.
| Professional in Payroll, Pensions and Reward | November 2019 | Issue 55 10
Payroll and HR legislation update 50% DISCOUNT FOR CIPP MEMBERS Payroll legislation is constantly changing, and this essential update course covers the latest legislation, case law and all the proposed future changes, with the course material constantly updated to reflect the changes to payroll and HR in the UK.
Career development insight
PAS – case study
Access Group
The Payroll Assurance Scheme – an accreditation available from the CIPP – provides payroll departments with assurance that: ● their payroll and associated processes are fit for purpose and comply with government legislation ● they have the right payroll activities in place, and ● they have suitable processes in place for picking up and preparing for legislative changes. It’s a really great accreditation to hold as it lets us benchmark ourselves against other organisations. When we advise our customers that we are PAS accredited – something that only 100 organisations have achieved – it’s a glowing reference of how excellent our team is. This year, we attained a PAS success mark of 100% which is very rare and just goes to show the hard work our team has put in. It’s not an easy accreditation to obtain but the reward of showing our team and customers that the practices we have in place are the best, is certainly worth it. investing in the PAS programme? Just bite the bullet and go for it. It’s a widely recognised industry standard and if you’re a payroll professional who has a passion for the profession, then this is the perfect accreditation for you to hold. Everyone who works in the profession is familiar with its significance. What advicewould you give to organisations considering Howhas the CIPP, as an organisation, added value to your organisation and in particular payroll department over the years? The fact that the CIPP is the only recognised body in the payroll sector is what makes the CIPP so beneficial. In our view, the CIPP is Howbeneficial has the PAS assessment been for your organisation?
the best in the field. Similar providers don’t provide the same levels of investment in individual payroll professionals’ learning. In addition to this, the networking, regular events, legislation updates and wide range of relevant training courses they offer are excellent. They support professional development throughout an individual’s career and provide great opportunities for payroll professionals to meet like-minded individuals. Why do you feel the PASwas the best resource available to help with your company objectives? The CIPP are the only providers of these industry recognised benchmarks and qualifications. The PAS accreditation only serves to demonstrate the high level of competence and expertise required in the payroll field. Primarily from the CIPP bulletins and communications. However, both Emma Long, operations manager, and Vicky Smith have worked towards achieving the accreditation in previous organisations, therefore knew first-hand of the benefits of such a qualification. Where did you learn about the CIPP PAS accreditation? What would you recommend about the PAS to other organisations that may be considering engaging in the scheme? Achieving and maintaining the PAS qualification is a huge commitment and is not something that should be undertaken lightly. However, it certainly is worthwhile as it provides your organisation with a solid payroll foundation and a golden standard for working practices. It’s also great that the CIPP come back to each organisation throughout the two-year accreditation period, ensuring that regular communication is in place and that the organisation is still adhering to best practice and has access to any support required. n
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For more information: Visit: cipp.org.uk/training Email training@cipp.org.uk Call: 0121 712 1000 Live chat with us
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| Professional in Payroll, Pensions and Reward | 11 *correct at time of publication
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| Professional in Payroll, Pensions and Reward |
Issue 55 | November 2019
CAREER DEVELOPMENT INSIGHT
To appear on this page contact editor@cipp.org.uk
CIPP STAFF APPOINTMENTS THE CIPP has recently made several appointments within its policy and education teams. The five members of staff are, namely: ● ● Diana Bruce MCIPPdip – technical author ● ● Ben Carter BA (Hons) FCIPPdip MCMI – education manager
● ● Joanne Leather ACIPP – education support specialist ● ● Lora Murphy ACIPP – senior policy liaison officer ● ● Fiona Smith MCIPPdip – trainer
Diana has recently moved from the CIPP’s policy team to material updates in her new role. She joined the CIPP in 2009 and was previously responsible for providing content for CIPP’s magazine, amongst other things, which sets her in good stead for her new role assisting in the updating and maintaining of the Institute’s training and qualifications materials. Prior to joining the CIPP in 2017 as a trainer, Ben worked as a payroll consultant for a large payroll and HR software developer. This enabled him to work with payroll professionals across different industries and illustrated the interaction that payroll has with other internal, and external, stakeholders at a strategic level. Ben was appointed education manager in July 2019, replacing Toni Green when she retires in November 2019. Ben will be instrumental in continuing Toni’s hard work in developing and maintaining our professional qualifications and relations with tutors. After nearly 23 years working in ‘finance’, accruing a vast amount of experience and two children, Joanne joined the CIPP in 2013 as a qualification administrator. Joanne’s role is essentially to support the education manager in the development of all qualifications and to manage our online learning portals. Lora, who has worked extensively within payroll for approximately ten years, joins the CIPP as senior policy liaison officer, filling Diana’s former role. She will be predominantly responsible for keeping CIPP members informed of legislative updates across a variety of communication platforms and be involved with the maintenance of the Institute’s social media accounts. There will also be some analytical scope to the role, as she will be creating surveys and collating results. Fiona was appointed with effect 30 September as a full-time trainer, joining the CIPP from her role as assistance group payroll manager. Fiona brings a wealth of experience and knowledge from which our course delegates can learn.
CoreHRAPPOINTS STEVE LEESON JOINING THE executive team at CoreHR as chief revenue officer, Steve brings experience of heading growth strategies of respected SaaS (software as a service) vendors. “I’m extremely excited to join CoreHR and further develop and deliver on the company’s ambitious growth strategy” says Stave. “HR leaders everywhere are looking at technology to automate routine, help better serve employees and give HR back the time it needs to align people management strategies with business goals. It’s a great time for me to join this amazing, growing company.” Dean Forbes, chief executive officer (CEO) at CoreHR said: “…I’m delighted Steve has chosen to join us. Steve brings exceptional people leadership, commercial acumen, market knowledge and vision to CoreHR and I know he’ll play a truly instrumental role in our future.” MICHAEL CUSTERS JOINS SDWORX AS CHIEF marketing officer, with responsibilities including expanding the company’s product range and communication and marketing activities, Michael joins the SD Worx executive committee, reporting directly to CEO Kobe Verdonck. Michael sees three major platforms to contribute to growth, observing: “First of all, we want to continue to optimise the customer experience. Secondly, we want to further innovate our range of solutions. Thirdly, of course we need to create good commercial dynamism, strengthen our brand awareness and the brand internationally and, through relevant content, help our clients ask and answer the right HR questions.” “We want the company to become the European number one and are convinced that Michael has the right experience and expertise to support our ambitious marketing growth. I wish him every success in his role”,
| Professional in Payroll, Pensions and Reward | November 2019 | Issue 55 12
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