RTI REPORTING CHANGES How people power can drive legislative change, even when it may appear too late NEONATAL CARE LEAVE AND PAY A review of the new guidance effective from April 2025 PROUD TO BE PAYROLL PROFESSI NAL in Payroll, Pensions & Reward Issue 104 October 2024 Official publication of The Chartered Institute of Payroll Professionals PENSIONS DASHBOARDS The progress of government plans and how to get ready for them
CIPP UPDATE POLICY HUB PERSONAL DEVELOPMENT
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“If you want to be proud of yourself, then do things in which you can take pride.” Karen Horney
Editor’s comment
38
Autumn is here and before we know it, the end of the year will be upon us. So, what better time is
there to reflect on what we have achieved and celebrate our accomplishments so far – not just during 2024, but throughout our careers?
This October issue of Professional highlights how we should be proud to be in payroll. Following on from last month’s National Payroll Week events that took place across the country to raise awareness of the industry’s important work, we look at some of the individuals and teams who have dedicated their working lives to payroll. Our feature article on page 30 asks a number of seasoned professionals what drives their passion for payroll and why they take pride in their contributions to the business world. As well as finding out about their career highlights, they tell us how they think payroll professionals can develop their skill set and keep it relevant to the demands of the job. Over the years, people in the industry have made great strides to elevate the profession, transforming it into a challenging and fulfilling career path which attracts and rewards talent. It now also offers a host of specialisms and skill sets, as well as providing education and qualification pathways to help professionals succeed. Turn to page 38 to read more. One task payroll is often asked to take on is to help staff understand their payslips, since many employees find it difficult to make sense of the various figures, codes and deductions presented each month. Read some top tips on how to assist staff with this important job on page 46. Of course, new legislation is also something payroll must regularly contend with. New neonatal care leave and pay rules will be effective from April 2025, so find out how you should prepare on page 64. Finally, this month marks the highlight of the CIPP’s events calendar, with the Annual Conference and Exhibition and Annual Excellence Awards taking place from 2-3 October 2024. We look forward to welcoming you there. In the meantime, happy reading!
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64
Kavitha Sivasubramaniam (editor@cipp.org.uk) Editor
30 - Feature topic – Proud to be payroll By Jerome Smail
38 - Payroll progress: stepping into the future By Maria Mason
46 - A helping hand: tips to make sense of payslips By Stacey Lowman
64 - Hot topic – Neonatal care leave and pay By Sarah Smith
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| Professional in Payroll, Pensions and Reward |
Issue 104 | October 2024
Chair’s message
Chief executive officer Jason Davenport MCIPP MloD CIPP board of directors Sohail Butt ACIPP Louise Gray ChMCIPPdip Stuart Hall MCIPPdip Dianne Hoodless MSc ChFCIPP FHEA Ana Laiu MSc FCIPPdip Brendan Mulkern FCIPP Justine Riccomini MSc FFTA AIPA Chartered MCIPD ChFCIPP Lara Smart ChFCIPPdip Brian Sparling ChFCIPPdip Cliff Vidgeon BA (Hons) CMA ACG ChFCIPP Clare Warrington MSc FCIPPdip AFHEA Editor Kavitha Sivasubramaniam editor@cipp.org.uk Advertising Daniel Cull 07795 652645 | advertising@cipp.org.uk Design James Bartlett and Nicole Davis design@cipp.org.uk Printing Redactive
Hello October and the move to autumn, with darker nights and the leaves now turning from green to brown. With Halloween creeping up on us, we really are in the last quarter of the year.
October is also the month of the Annual Conference and Exhibition 2024, so there’s lots of networking, training and collaborating coming up. They say that you either love or hate payroll and it will be a career for life or a job you would never go near again. Well, after 36 years in the industry, I can wholeheartedly say I love it. I started my career on a Youth Training Scheme at 16 while taking the BTEC National Diploma in Finance and Business, progressing through the roles to payroll and human resources manager, payroll compliance manager and shared services manager in private and public service industries. I then became head of compensation and benefits, which led me to my role today as head of shared services. I have also undertaken IPPE qualifications along my journey, starting with the Payroll Diploma then moving to the MSc in Business and Payroll Management. Both qualifications helped me move to the next career level. The biggest and proudest part of my career has been serving you, our members, as chair of the CIPP board. I have been learning new skills, overcoming challenges and been able to make a difference to the payroll industry. Thank you for allowing me to share my passion for payroll. I’m looking forward to seeing you at the forthcoming events, so please come over and say hello and share your payroll career stories.
Clare Warrington MSc FCIPPdip AFHEA (clare.warrington@cipp.org.uk) Chair, CIPP
Useful contacts
Consult consult@ippeducation.co.uk 0121 712 1044 IPP Education education@ippeducation.co.uk 0121 712 1023 Events events@cipp.org.uk 0121 712 1013 General enquiries enquiries@cipp.org.uk 0121 712 1000 Marketing marketing@cipp.org.uk 0121 712 1033 Membership membership@cipp.org.uk 0121 712 1073 IPPE Training training@ippeducation.co.uk 0121 712 1013 cipp.org.uk @CIPP_UK
CEO’s message By the time this issue lands on your desk, we’ll have celebrated National Payroll Week and demonstrated to broader industry the contribution the payroll profession makes at a macro level for the UK economy and broader UK spending, and at a micro level for every individual receiving the correct pay, at the right time, for each working household in the UK. Thank you all for your contribution to that special week, and of course for everything you do each pay period.
It’s now conference and awards season, and as well as our own awards, I have been fortunate enough to be asked to judge on a number of other association award panels. Whether for individual accomplishments or team projects, it’s a delight to review submissions and see the wealth of talent that exists in the payroll, pensions and reward profession. This issue focuses on why you love payroll. For me, it’s provided a fantastically diverse and experience rich career that has spanned the globe and allowed me to meet, and work with, so many inspiring people from a myriad of backgrounds. I was especially pleased recently to provide an overview of the opportunities that payroll as a career choice presents to the son of one of my oldest friends. Nearly all my close friends are successful entrepreneurs and having him ask me to speak to his son shows the respect that he has for my career, which typically as lifelong friends has never been spoken of previously. We all love payroll and I thank you for all your support of the CIPP and IPP Education Ltd. I thank you for promoting payroll within your organisations, within your business sector and to the world at large for all that the profession delivers for the benefit of everyone employed. I have recently completed a ‘My Duvet Flip’ filming with Jack Parsons from Youth Group, to promote the Institute and the profession as a career choice. You can read a little more about this on page 4 but do please like and share this to create as much reach as possible and encourage others to think about the possibilities of payroll.
Trademarks The CIPP logo, the initials ‘CIPP’ and the words ‘Professional in Payroll, Pensions and Reward’ and ‘CIPP Consult’ are trademarks of the Chartered Institute of Payroll Professionals. Copyright: The Chartered Institute of Payroll Professionals 2024. The Chartered Institute of Payroll Professionals, Goldfinger House, 245 Cranmore Boulevard, Shirley, Solihull, West Midlands, B90 4ZL. Switchboard 0121 712 1000
Copyright This magazine is published by The Chartered Institute of Payroll
Professionals in whom the copyright is vested. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of the publisher. The views expressed in this publication are not necessarily those of the CIPP or the editor. The information and comment contained in this publication are given in good faith, their accuracy or completeness cannot be guaranteed.
Jason Davenport MCIPP MIoD (jason.davenport@cipp.org.uk) Chief executive officer, CIPP
| Professional in Payroll, Pensions and Reward | October 2024 | Issue 104 2
Contents
Interested in writing for our magazine? Please support this magazine so that it can continue to be a part of your membership package. To get involved, contact Kavitha, at editor@cipp.org.uk.
OCTOBER 2024
Reading the magazine gives you one CPD point
REGULARS
FEATURES - PROUD TO BE PAYROLL
01 Editor’s comment 02 Chair and CEO messages 04 CIPP update News and developments 05 My CIPP
Consultation update: low pay By Mathew Akrigg
Reacting and adapting to constant NMW change By Gary Henderson RTI reporting changes: many voices make a difference By Susan Ball
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16
Global, local and hybrid payroll models By Russell Webb
26
18
Events horizon, On your behalf, Spotlight on…, Advisory Q&As, Tutor and Assessor Training Conference 2024, Payroll news
Pay legislative changes By Danny Done
AEOs and employer obligations By Lauren Handley
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35
13
Personal development BePayroll
14 Compliance
Find out about the Low Pay Commision consultation, real time information reporting changes and how to meet the legal requirements for attachment of earnings orders
Legal action By Nicola Mullineux
Payroll progress: stepping into the future By Maria Mason
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38
30 Feature topic
Read all about the theme of the current issue – Proud to be Payroll – which explores what drives industry professionals and their career highlights
Ensuring neuroinclusivity at all stages of the employee life cycle By Cybill Watkins
Celebrating 50 years in payroll By Stephen Abbotts
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42
35 Reward
A look at how the strategic value payroll brings to businesses and to help staff understand their payslips
A helping hand: tips to make sense of payslips By Stacey Lowman
I love payroll By PayCaptain employees
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44
56 Technology
How technology and artificial intelligence have enhanced the payroll profession
Preparing for pensions dashboards By Julie Yates
Back in the payroll day By Rosemary D’Emanuele
58 Pensions
58
54
An update on the progress of government plans to introduce pensions dashboards
64 Hot topic
New neonatal leave and care guidance has been issued ahead of its planned introduction in April 2025. Find out what you need to do to prepare
Exclusive online content 20 TV presenter Adrian Chiles loses IR35 case 21 A good fit: finding your feet in payroll 22 Common payroll issues
24 Mastering the US payroll year end 48 Time to shine 50 Career journeys in payroll 52 Moving with the times 56 Propelling the profession
66 Payroll pets
We say hello to some of your furry friends
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| Professional in Payroll, Pensions and Reward |
Issue 104 | October 2024
CIPP UPDATE
update
Jason Davenport’s ‘My Duvet Flip’ with the Youth Group IN AUGUST, CEO Jason Davenport travelled to London to film with the Youth Group, a company dedicated to supporting young people. Jason sat down with Jack Parsons, Youth Group’s chairman, and filmed an episode of its popular YouTube series, ‘My Duvet Flip’. In the 30-minute interview, they discussed everything from the importance of understanding your payslip, to bullying in the workplace, as well as the ultimate question, ‘What gets Jason out of bed every morning?’ The full episode was released during National Payroll Week and can be found on the Youth Group’s YouTube channel here: https://ow.ly/KHqX50ThoBN.
National Payroll Week 2024 celebrations NATIONAL PAYROLL Week (NPW) 2024 took place from 2-6 September, and what a week it was! Kicking off on the Monday with a roundtable on the future of payroll, hosted by CIPP editor Kavitha Sivasubramaniam, this was followed by a drinks reception at the stunning Sky Garden in London. More than 200 professionals attended to network, discuss payroll insights and to raise a glass and celebrate the industry. Throughout the week, we hosted many informative webinars hosted by our policy and research team, advisory service team, trainers and industry experts discussing a variety of different topics. It was great to see so many teams and companies joining in the celebrations, with photos and videos shared on social media. We hope you all had a great NPW! The CIPP and IPPE teams joined in the celebrations with balloons, bunting and posters decorating head office. We also enjoyed a fun treasure hunt game, during which teams of four worked out riddles leading to letters that spelled out #ChoosePayroll. Plus, we all got together to enjoy a pizza and cake party, which was thoroughly enjoyed by all.
PAS assessor winner FOLLOWING OUR hybrid annual PAS assessor meeting in June, we
are delighted to confirm the winner of the assessor icebreaker quiz, and the client assessor feedback of the year was awarded to Don Macarthur MA PhD FCIPP. Testimony received from Kreston Reeves LLP stated, “Our assessor was really thorough, put the team at ease to be able to answer questions honestly and took time to get to know Kreston Reeves as a firm, as much as the payroll department.” We welcome all organisations and you can check out our latest accredited employers on our website. Find out more here: https://ow.ly/ eqg250Tkfl4.
| Professional in Payroll, Pensions and Reward | October 2024 | Issue 104 4
AUTUMN ENROLMENTS CLOSE 10 OCTOBER
Go beyond the basics PAYROLL SPECIALIST CERTIFICATE This online quali cation takes individuals beyond the basic knowledge and skills of payroll administration, into the complexities surrounding payroll legislation and contractual obligations.
Event horizon Your guide to upcoming events and training
Full details of all events can be found at cipp.org.uk/events or you can email events@cipp.org.uk for more information.
National Payroll Week (NPW) NPW 2024 celebrations were in full force last month, with professionals across the country holding various events to mark the week. NPW, which ran from 2-6 September, aimed to highlight the important work carried out by payroll, with the CIPP and IPPE hosting a series of workshops and
educational sessions covering important topics affecting the industry. Thanks to everyone who attended our events, as well as those who held their own celebrations to help raise the profile of the profession and awareness of its important role within organisations. We’ll include a full article on the week in next month’s issue.
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The CIPP’s Annual Conference and Exhibition (ACE) 2024 We’re looking forward to a fantastic and memorable couple of days! The CIPP’s annual conference and Excellence Awards is taking place at the Celtic Manor Resort in Wales on 2-3 October. There’ll be a supplement within the next issue of Professional , which will provide coverage of the two days.
A subsidiary of the Chartered Institute of Payroll Professionals
Training courses Take a look at some of our upcoming training courses below. Those that are taking place face-to- face are highlighted in orange. Please note, there are additional dates, locations and training courses available. Please visit http://ow.ly/iVfT50MU7yr.
COURSE
DATE
LOCATION
17 October
Online
Automatic enrolment and pensions for payroll
13 November
Online
Foundations of payroll analytics
10 October
London
16 October
Online
Holiday pay and leave
11 November
Online
OFQUAL REGULATED
Irish payroll advanced
3 October
Online
Irish practical payroll
24 October
Online
Irish taxation of benefit in kind
10 October
Online
7 October
Online
Visit www.cipp.org.uk/PSC or scan the QR code for details and to book
Introduction to payroll
15 October
London
11 November
Online
10 October
Online
Payroll for non payroll professionals
4 November
Online
14 October
Online
25 October
Birmingham
Scan to book
Payroll update
6 November
Online
15 November
London
26 November
Online
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| Professional in Payroll, Pensions and Reward |
Issue 104 | October 2024
POLICY HUB
On your behalf
Discover what the CIPP’s policy and research team has been doing on behalf of you, our members, and the wider payroll profession in the past month Policy team update
S eptember was filled with celebrations for National Payroll Week 2024 (NPW). LinkedIn was alive with posts from all of you acknowledging our wonderful profession through various events and lots of wonderful cakes.
hosted by Portfolio Payroll. The first was held on 4 September in London and was supported by Sarah, while the second took place in Manchester on 5 September, supported by Mathew. The range of free webinars provided throughout the week were all well attended and provided some great insights to the profession. It was truly a week well celebrated by payroll professionals and hopefully it will continue to gain support as we all strive to help each other and raise awareness of the fantastic work we do. Samantha O’Sullivan, CIPP policy and advisory lead, and Jason Davenport, CIPP CEO, had the pleasure of attending the Labour party conference which took place on the week commencing 23 September. It was a great opportunity to build on the success of gaining support from ministers of the new government, Rachael Reeves, Chancellor of the Exchequer, endorsing the work of the CIPP in both raising the profile of payroll professionals and supporting the development of policies through the ongoing engagement with government. You can view the correspondence from the Chancellor here: https://ow.ly/ mssS50Tgusn. Mathew delivered a short presentation to a roundtable of payroll industry leaders at the Payzar event in London on 12 September. Exploring the new Labour government and the impacts future policy and legislative changes will have on payroll professionals across the country.
Forums Sam, Mathew and Sarah attended several forums between them during September, including: l Department for Work and Pensions Small Pots Delivery Group l Employment and Payroll Group (EPG) l Expenses & Benefits EPG sub-group meeting l Accessible Payroll Giving l HM Revenue and Customs Expert Panel. The team sits on these forums to ensure our members’ feedback is provided at government level. We will always update you on our findings and information provided through these groups, via Professional and News Online . If you have any issues you would like to raise at any of these professional forums, please email policy@cipp.org.uk. And just like that, we’re another month closer to the end of the year and I’m sure there’s something big happening in October! We hope to see you at our Annual Conference and Exhibition 2024 (ACE24) at the Celtic Manor Resort on 2-3 October. n
National Payroll Week On 2 September, CIPP policy and research officers Mathew Akrigg and Sarah Smith kick-started this year’s event with a Policy Update webinar. Later that evening, the NPW launch event was held at the beautiful Sky Garden in London. The whole policy team was delighted to be in attendance, with the opportunity to meet and greet those who could make it. On 3 September, Sarah attended the Payroll Careers: Opening Doors to Your Future Success event in London, especially aimed at those just starting in the profession or those who are looking to further progress their careers. Clare Warrington, CIPP chair, presented two breakfast briefing legislative updates,
| Professional in Payroll, Pensions and Reward | October 2024 | Issue 104 6
MY CIPP
Tell us a little about your career and background so far? As a school leaver, I began an apprenticeship in design engineering. When that didn’t work out, I was introduced to someone who had started an internet provider company in the late ‘90s. Though I had no prior experience in technology, I was captivated by the potential of a screen that opened a world of communication and knowledge. Soon after, I joined a small group pioneering web hosting and within four years we grew into the largest in the UK in our industry. This was my first taste of working within a fast-growing tech organisation. Although my focus was technology skills, I gradually realised that my true passion lay in problem-solving, organisational leadership and management. I moved away from hands-on technical work and started leading teams, particularly in rapidly growing, venture capital and private equity-backed technology companies. For the past decade or so, I’ve worked with a broader focus beyond technology, naturally leading me into operations. Despite starting my career with just GCSEs, I’ve continually pursued professional education and accreditation, transforming my career along the way. This passion for lifelong learning fuels my desire to contribute to an industry brimming with opportunities for positive change. What are your day-to-day duties at the CIPP? Being part of the operations function is dynamic and multifaceted, making each day uniquely different. As the senior operations leader, I oversee finance, IT, and Quality, Environmental, Safety and Health (QESH) departments, but my role naturally extends beyond these areas, touching virtually every aspect of the Institute’s operations. In finance, I help to ensure our financial strategies support our long-term goals. My role involves providing guidance and ensuring we remain aligned with our overall objectives, maintaining the Institute’s fiscal health.
In IT, I collaborate with our technology teams to maintain and improve the systems that run the CIPP and deliver experiences across our various platforms. QESH is another critical aspect of my work, where we focus on maintaining high standards of compliance and fostering a culture of quality in everything we do. What does your role mean to you? It’s more than just a job; it’s a culmination of my experiences, passions, and values. Being in operations allows me to engage with various parts of the organisation, our membership and the wider payroll community. I see my role as bridging strategy and execution, shaping and implementing initiatives that ensure we operate efficiently, adapt to challenges and continuously improve. It’s about fostering a collaborative, professional and caring culture where people are empowered to do their best work in an equitable way, driving the high standards our colleagues and community expect. My job is incredibly fulfilling as it allows me to give back to a field that has provided me with so many opportunities. I’m passionate about professional development and lifelong learning and being part of an organisation that champions these values is deeply meaningful to me. Every day, I’m reminded of the importance of what we do and how we contribute to the success and growth of payroll professionals across the industry. Do you use any tools or strategies that ensure operational efficiency and effectiveness? A significant part of my approach to ensuring operational efficiency and effectiveness at the CIPP involves applying the Triple E Framework, which is particularly relevant for non-profit organisations. Efficiency is about making the best use of our resources to achieve our goals. I work with the teams to ensure our processes are streamlined and that we maximise output with the resources available. This involves continuous evaluation and improvement of our operations, using various techniques,
technology and tools to track progress and optimise workflows. Effectiveness focuses on achieving our strategic objectives and delivering outcomes for all our stakeholders. We also ensure they genuinely contribute to the Institute’s long- term goals. Finally, economy is concerned with the cost-effectiveness of everything we do. As a not-for-profit organisation, we must procure the necessary resources at the best possible value without compromising quality. This approach helps us manage our budgets responsibly while still achieving high standards. What are your priorities for the future of operations within the CIPP? My key priorities for the future of operations at the CIPP focus on driving innovation, enhancing agility, and ensuring sustainability. Technology will play an increasingly pivotal role in enriching members’ and learners’ experiences. We’ll continue to invest in both established and emerging technologies to boost efficiency and elevate the quality of our services. To stay competitive and responsive to change, I plan to further streamline our operational processes, reducing complexity and improving efficiency. This will empower us to make quicker decisions and adapt swiftly to the evolving needs of the industry. Delivering all of this in a financially sustainable manner is crucial. Through intelligent resource management and adopting practices that support our long-term health, we’ll maintain the quality of service our members expect without compromising on our financial stability. Finally, central to everything we do is our commitment to fostering a diverse, equitable, and inclusive culture. It’s crucial that everyone at CIPP has the tools, resources, and opportunities to excel. But beyond that, we also believe in creating an environment where we can enjoy the journey. A bit of fun and humour goes a long way in keeping us connected and motivated, ensuring that we support each other while delivering our best work. o
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| Professional in Payroll, Pensions and Reward |
Issue 104 | October 2024
MY CIPP
The CIPP’s Advisory Service team provides answers to popular questions
Attachable earnings and statutory payments
A: A Northern Irish citizen can be added to a UK payroll as you would for any of the other home countries. The tax and National Insurance (NI) treatment would be the same as if the person lived in England, with no ‘special’ tax codes like there are for Scotland and Wales. There are, however, some devolved areas for NI, such as the reference period for holiday pay (12 weeks used for average weekly earnings instead of 52). Critical illness cover Q: Does critical illness cover count as a benefit in kind (BiK)? I believe so as the employer is paying the premium on behalf of the employees. Also, the employer has already registered to payroll healthcare benefits. Would this be included in that, or would they need to register again for critical illness? A: If an employee receives something from an employer which isn’t ‘cash’, and the only reason they receive this is because of their employment, it would be a BiK. Therefore, the critical illness cover would be a BiK. If the critical illness cover is offered separately to the healthcare benefits, you would need to register separately for the critical illness cover.
Charity contributions and NMW Q: Are there are any implications we should consider in setting up a regular monthly deduction (net deduction) from employees’ pay to collect donations for a business chosen charity? We sometimes have ad hoc charity events where raffle tickets are bought via deduction from salary. Should this deduction be included in the national minimum wage (NMW) calculation? A: As this would be a deduction to a business charity, it could be deemed a deduction for the employer’s own use or benefit, which would reduce NMW pay for calculation purposes. To ensure you remain compliant, view the legislation here: https://ow.ly/ cSJq50T3Hz6. This guidance may also be helpful: https://ow.ly/PfnS50T3HzU. Showing SSP on a payslip Q: An employee who received SSP while off sick has exceeded their sick allowance. They have returned to work and management has now informed me that they should have been paid in full while off. Can you please advise how I correct / reverse the SSP payment? Should I just change the absence record in our payroll system? A: If this person was still absent, but just due full pay, keep the sickness in the absence record and then calculate what ‘top up’ they need to take them to full pay. You would always keep the SSP element of sickness, even if company sick pay pays 100%. This is because, if the absence was to run long term and
Q: A female employee is starting maternity leave this month and she has a Child Support Agency (CSA) attachment on her wages. Am I correct in thinking we can’t deduct the CSA payment from the statutory maternity pay (SMP), but can deduct from the company maternity pay that we pay from week seven to week 12? Would the CSA deduction only be deductible
on the amount that we, as the company, top her wages up by?
A: : Your thinking is spot on! Contractual maternity pay is attachable, but SMP is not. The only statutory payment that counts as earnings for attachment of earnings is statutory sick pay (SSP). Please see the following guidance: https://ow.ly/ umx550T3Hhq. Your software should be configured not to include SMP in the CSA payment calculation.
How should CSA payments be deducted from maternity pay?
Employees in Northern Ireland Q: Can citizens of Northern Ireland be payrolled onto a UK payroll as though they lived in England, Scotland or Wales?
Does critical illness cover a BiK?
| Professional in Payroll, Pensions and Reward | October 2024 | Issue 104 8
POLICY HUB
Ready for a managerial role?
FdSc PAYROLL MANAGEMENT (UK PAYROLL) Delivered by the prestigious University of Lincoln, this new university-accredited quali cation is entirely online, meaning you don’t have to move from the comfort of your home or o ce.
an employee needed to apply for state funded sickness benefits, they would look at when SSP began. This should be from the start of the sickness period, taking into consideration waiting days etc. The fact that they’ve returned to work wouldn’t make a difference. If you look at last month in isolation, review what should have been paid, versus what was paid, and pay the difference this month.
pension scheme providers will require the employers to keep records longer under the terms of that scheme, as they quite often revisit past years to calculate their benefits. You will need to check with the pension provider to see if they have requested records be kept longer when the employer joined the scheme. See: https://ow.ly/aYgP50T4HcZ.
How long should records be kept?
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How can sick pay amounts be corrected?
Holiday pay calculation Q: What’s the best calculation for holiday pay? My staff receive a salary, and some do overtime. Do I work out the additional holiday hours due on the overtime then pay them at an average hourly rate over the past 52 weeks? A: The employee is entitled to 5.6 weeks per annum, the calculation of which is dependent on the contract of employment. So, it will be in hours, days or weeks, over the previous 52 weeks average. This will collate any overtime or regular pay the employee has received, that is intrinsically linked. If the employee is on a salary, they have already received the holiday pay; therefore, the consideration is only the holiday pay top up based on the overtime. Calculate the overtime earned in the previous 52 weeks / 52 this will give the weekly normal pay averages of the overtime and the employee’s salary will need to be topped up with that averaged amount. For any week where no pay was received then the employer must disregard that week and extend the reference period back another week. The maximum reference period is 104 weeks, and if less than 52 weeks of data exists then employers should use what they have and divide by those number of weeks to achieve an average. The HMRC legislation can be found here: https://ow.ly/RYpy50T4Hlh. n
Voluntary payrolling benefits Q: With mandatory payrolling benefits coming in from 2026, can companies sign up to this sooner? A: Yes, a company can register for payrolling benefits through its HMRC online account. The registration deadline is 5 April, so you wouldn’t be able to payroll benefits in 2024/25 but could register in time for the 2025/26 tax year. Record retention Q: How long do we need to keep paper versions and / or any scanned copies of our drivers’ timesheets? A: There are different rules for retention. The retention period under The Income Tax (Pay As You Earn) Regulations 2003, states you must keep pay as you earn (PAYE) records for three tax years after the end of the year to which they relate but HM Revenue and Customs can ask to go back six tax years. This includes all PAYE records. See: https://ow.ly/rMKu50T4kwc. There are slightly different rules regarding records for NMW, which is six years. See: https://ow.ly/jCbx50T4kJK. The Pension Regulator states that pension records regarding contributions paid to the pension scheme must be kept for at least six years. However, other types of records must be kept if they remain relevant for the scheme to operate. Some
For more details, scan the QR code or visit ippe.org.uk/FDSC
Scan to book
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| Professional in Payroll, Pensions and Reward |
Issue 104 | October 2024
MY CIPP
How does IPPe ensure its learners receive the experience they deserve?
Joanne Leather MCIPPdip, education manager at IPP Education Ltd, shares details of this year’s Tutor and Assessor Training Conference 2024 and highlights its focus on quality and standardisation
I PPE, as an Ofqual registered awarding organisation, has a responsibility to ensure that our tutors, moderators and assessors undertake development opportunities throughout the year. Every July, we bring together our amazing teams for a conference of guidance and training, helping them keep up to date and develop the required skills to offer our learners the experience they deserve. Networking plays a large part in the development too, as sharing knowledge and experiences enhances growth, but perhaps most importantly collaboration between the education teams allows us all to hone our skills. The Tutor and Assessor Training Conference 2024 content was heavily focussed on quality and standardisation but the event, which took place both online and face to face, was also about the celebration of our teaching and assessing teams. IPPE’s tutors, moderators and assessors are also working practitioners within the payroll, pensions or reward industries. In their educational roles, these individuals are far more than conveyors of content
and quality; they are coaches, mentors, emotional supporters and a calm presence for our students. They dedicate their time to the next generation of payroll and pension leaders and contribute to these industries with their skills and knowledge. IPPE highly values these incredibly talented and caring people. “The CIPP and IPPE pride themselves on the culture the businesses practice and promote. Our
Conference 2024 demonstrated these values with an itinerary that showcased our commitment to educating and supporting the industries that we serve. Teamwork always plays a part in any event, with collaboration from the education, events, design and membership teams to enable the day to run smoothly and efficiently. Outside of these planning and execution stages though is the collaboration of all the teaching and assessing teams and the way they support each other throughout the year. There is a heartwarming sense of community and genuine care when we all get together. Trust and honesty are the values I most appreciate. Andrew Pain was our motivational speaker this year. He discussed imposter syndrome and also spoke about psychological safety. At IPPE we promote psychological safety throughout our teams, believing that every individual should feel empowered to have their say and be respectfully heard. This value was demonstrated during the conference with discussions seeking the tutors’ and assessors’ views on content for future development of
company values are held in high regard”
The CIPP and IPPE pride themselves on the culture the businesses practise and promote. Our company values are held in high regard, and we incorporate them into all that we do. The Tutor and Assessor Training
| Professional in Payroll, Pensions and Reward | October 2024 | Issue 104 10
MY CIPP
Three years’ service Rachel Akister
our products, services and teaching methods. Communication is an essential part of everyone’s life in all its facets. I certainly couldn’t successfully fulfil my role without communicating with my teams. The teaching and assessing teams have built firm professional relationships through effective communication. Of course, there’s always room for some fun and when I was approached by a couple of tutors with the idea of a light-hearted activity, I was fully on board. So, following lunch we all learned techniques to prepare our voices for presentation, a wonderful way to wake us all up and have a few laughs in the process. Professionalism was demonstrated throughout the conference. Our dedicated events team managed everything venue wise, while the education teams managed the plenary and workshop sessions. Our attendees experienced a flawless itinerary that ran like clockwork. The event speakers were knowledgeable and engaging covering many topics such as standardisation, moderation and assessment strategies. Striving for excellence is the foundation of all that we do in education. We continually seek feedback to improve, evolve and grow. Key workshops took place to reflect and discuss how we improve the student experience and engagement. We also shared developments in our tutor and assessor development programme which is available for professional growth and Continual Professional Development (CPD). Our CEO Jason Davenport often says, “Every day is a school day.” I believe this to be true as we are repeatedly learning and evolving, whether that be through academic study or through life experiences. The event concluded with awards for long service, achievements and our Tutor of the Year, recognising the dedication and commitment our tutors and assessors have to IPPE and the education of payroll and pensions professionals.
Congratulations to: Ann Anderson Sonia Grant Ros Hendren Vicky Hilton Christine Lane Joanne Leather Carolyn McGowan
Sarel Daysh Usha Madan Jake Shergold
Five years’ service Angela Clow Harriotte McNamara Sophie Chapman-Ledward
Vivien Piper Polly Sinclair Pete Statham Michelle Sutton Ian Walters
Ten years’ service Julia Watkin Linda Shotton Andrea Musson
Fifteen years’ service Mike Hollingsworth Miloslava Mainstone Kalibanova
Twenty years’ service Dianne Hoodless
Twenty five years’ service Alison Ward Sonia Grant
Tutor of the Year Ian Walters received some wonderful
feedback from students and colleagues he has supported. His students praised him for having unwavering patience, showing them support and guidance throughout their study. One student wrote, “Ian is a remarkable hard working, passionate, knowledge sharing individual”, while another stated, “I cannot express how grateful I am for the incredible support and guidance you’ve given myself and the rest of the group this year. Your kindness and genuine care have really made all the difference”. There were many more comments received which truly reflect Ian’s commitment to his students and mentees. Congratulations Ian, it’s a well-deserved achievement. Another year’s training and development may have taken place but our passion for learning is still as vibrant as it always has been. Planning has already started for the 2025 conference and, as always, we are striving for an even bigger and better experience. n
For this year’s achievements we celebrated the first cohort of Gateway to Gold learners. You may have been reading about Polly Sinclair’s journey through this qualification in the previous issues of Professional magazine. I also completed this qualification alongside Polly and the rest of our cohort to achieve our level 6 Gateway to Gold certificate in Transformational Leadership.
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| Professional in Payroll, Pensions and Reward |
Issue 104 | October 2024
MY CIPP
PAYROLL news
LPC reveals response to its new remit THE LOW Pay Commission (LPC) has released a statement on steps being taken to address its updated remit. The new remit, provided by the Labour government in July 2024, asked the
Commission to factor the real cost of living into its estimates and recommendations for the national living wage (NLW). It was also asked to come up with a plan to bring the lower age threshold for NLW down to 18 years old. Read more here: https://ow.ly/yzim50ThqGc. In its statement, the LPC revised its estimate for the 2025 NLW up to between £11.82 and £12.39, with a central estimate of £12.10. Read more here: https://ow.ly/ W5sb50ThqPB.
To make steps towards the abolition of the 18–20-year-old rate, the LPC’s interim aim for 2025 is to reduce the gap between this rate and the NLW one. This potentially indicates a larger percentage uplift for younger workers in the coming year. As always, the rate is predicated on wider analysis of the labour market, economy and impacts on business and the low paid. The LPC has been asked to deliver its full report and recommendations to the government by the end of October, coinciding with the autumn budget announcement.
Recognised Overseas Pension Schemes (ROPS) notification list The LIST of ROPS notifications has been updated. The list is of schemes that have told HM Revenue and Customs (HMRC) they meet the conditions to be a ROPS and have asked to be included on the list. The schemes added are: l Andrew Hobbs Superfund (Australia) l Woolff Madew Super (Australia) l Niajuh Limited (Jersey) l AI-InfraSolutions B.V. (Netherlands) l Allianz Direct Ingaand Zeker Pensioen (Netherlands). The schemes amended are: l Clifton ROPS Fund (Australia) l E D Bennett Superannuation Fund (Australia)
l Speight Superfund (Australia) l Tracey Delves Super Fund (Australia) l Jalna Personal Pension Scheme (Netherlands).
An updated list of ROPS notifications is published on the first and fifteenth day of each month. If this date falls on a weekend or UK public holiday, the list will be published on the next working day. Sometimes the list is updated at short notice to temporarily remove schemes while reviews are carried out, for example, where fraudulent activity is suspected. The requirements to be a ROPS changed from 6 April 2017. Find out about the changes for ROPS requirements here: https://ow.ly/roFB50ThrBo.
Diary dates
2-3 October
The CIPP’s Annual Conference and Exhibition
5 October
Last day of tax month 6
First day of tax month 7
6 October
Last day for submitting a real time information employer payment summary to apply to tax month 6 Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by non-electronic method Deadline for payment of PAYE and NICs under a PAYE Settlement Agreement (PSA) by non-electronic method Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by electronic method
19 October (this is a weekend date)
22 October
Deadline for payment of PAYE and NICs under a PSA by electronic method Last day of tax month 7
5 November 6 November
First day of tax month 8
| Professional in Payroll, Pensions and Reward | October 2024 | Issue 104 12
PERSONAL DEVELOPMENT
# Be Payroll Gulnaz Patel ACIPP, payroll manager at Calico Group, explains her reasons for pursuing training and how qualifications provided by IPPE Education (IPPE) have enhanced her career, as well as the benefits of CIPP membership
Why did CIPP membership appeal to you? Joining the CIPP is highly appealing for several reasons. It reflects my commitment to upholding the highest standards in payroll and pensions, which enhances my professional reputation. CIPP membership provides invaluable career advancement opportunities and access to a wealth of resources, including industry research, best practice guides and legislative updates. The Institute offers excellent education and training through courses, webinars, and events, ensuring I stay informed of the latest developments. Additionally, the opportunity to network with other professionals in the CIPP community is a significant benefit, allowing me to share knowledge and experiences. Exclusive benefits, such as discounts on training and access to special events and publications, further enhance the value of membership. Overall, being part of the CIPP supports my career growth, helps me navigate complex regulatory environments and keeps me connected within the industry. Do you have any tips for people entering the payroll profession? Entering the payroll profession is both rewarding and challenging, requiring a mix of technical knowledge and soft skills. Start by building a solid foundation in payroll fundamentals and consider obtaining certifications to boost your expertise and credibility. Staying updated on industry changes and paying attention to detail are crucial. Strong communication skills, networking with peers and seeking mentorship are also important. Embracing new technologies and maintaining high ethical standards and confidentiality will help you navigate the complexities of payroll and advance your career. How did you manage studying with other commitments? Balancing study with other commitments, such as work and family life, required
careful planning and strong support systems. My manager played a crucial role by allowing me some dedicated study time, which helped me manage my workload more effectively. This flexibility enabled me to focus on my assignments without feeling overwhelmed. Additionally, my family has been incredibly supportive throughout my studies. They encouraged me to complete my assignments on time and provided a conducive environment for studying. My son, in particular, has been very involved, often checking in to see how many words I have left, which has kept me motivated and on track. I also utilised quiet times at home for catching up on reading and assignments, keeping me ahead of deadlines. Why did you study with IPPE? The CIPP is highly respected in the industry, and with IPPE (a subsidiary of the CIPP) offering comprehensive and up-to-date training, it ensures I’m well-versed in current regulations and best practices. IPPE certification provides the certification provides a significant boost to my professional credibility and career prospects. The resources, networking opportunities, and continuous professional development offered by the Institute further motivated me to pursue qualifications, as they are essential for staying informed and competitive in my profession. Which CIPP member benefits would you encourage other payrollers to use and why? Firstly, the CIPP Advisory Service is invaluable for getting expert guidance on complex payroll and pensions issues, helping to resolve queries and ensure compliance with current regulations. Additionally, staying updated through the CIPP and IPPE LinkedIn pages is beneficial for timely news and industry insights, keeping you informed of the latest trends
and developments. The CIPP website and member pages offer access to a wealth of resources, including best practice guides and legislative updates. Don’t overlook Professional magazine, which provides in-depth articles, case studies, and expert opinions on various industry topics, enhancing your knowledge and keeping you engaged with the profession. These resources collectively support professional growth, compliance, and advancement in the payroll field. How have your qualifications helped you in your career? My qualifications have been pivotal in advancing my career as a payroll manager. Studying for a foundation degree in payroll management was a significant stepping stone, opening doors and enabling me to progress from a payroll administrator to a payroll coordinator, and ultimately to my current role as a payroll manager. Currently, as I near the end of my pension course, I’m gaining valuable insights into pension regulations and schemes. This will enhance my ability to manage and integrate pension functions effectively, offering comprehensive support and ensuring compliance. Each qualification has equipped me with the knowledge and confidence to advance in my career, allowing me to take on greater responsibilities and leadership roles.
How did you begin your career in payroll?
I started my career in 2007 as a payroll administrator at an accountancy firm and I’ve been dedicated to the field ever since. The complexity and constantly evolving nature of payroll immediately fascinated me. This initial role sparked a deep interest in the intricate processes and regulatory changes that shape payroll management. Driven by this passion, I’ve continuously advanced my skills and embraced new responsibilities, always eager to stay current with industry developments and progress in my career. n
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| Professional in Payroll, Pensions and Reward |
Issue 104 | October 2024
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