REWARD
MOVING WITH THE TIMES
Emma Watson MCIPPdip Assoc CIPD, payroll manager at Payroll Pal Ltd, looks at how much has changed in payroll over the years, in particular exploring old-style payslips versus the new
W orking in the payroll industry, you often hear people say things like, “this is how it used to be done” or “these were the rules in the past”. This suggests that previous payroll methods and processes are outdated. Indeed, this may now be the case in the forever advancing
introduced to the UK by Prime Minister William Pitt to assist with financial costs of the Napoleonic wars l the National Insurance Act was introduced in 1911 l HM Revenue and Customs (HMRC) was introduced in 2005 after a merge of Inland Revenue and Customs and HM Customs and Excise l The Pension Regulator was formed
payroll world of legislative updates, advancements in technology and the
development of artificial intelligence (AI), but these old processes and procedures built the foundations for where we are today. For now, let’s take a step back in time and look back over what brought us to payroll as we know it. Some key developments are: l the first payroll records discovered date back to 700 BC, where the Greeks engraved payroll / financial information in stone to help keep their records in order l the first payslip dates to around 5,000 years ago. This was discovered in what is now known as modern day Iraq. Images were carved into a stone tablet representing pay elements l in early 1799, income tax was first
in 2005, replacing Occupational Pensions Regulatory Authority
l automatic enrolment was introduced in 2012 and took more than five years to roll out across UK businesses. Notice of allowances and coding Here is an example (see right) of a railway worker’s breakdown of income tax allowances to be offset against their pay in 1964/1965, assisting with the creation of their tax code. Sixty years ago, tax code breakdowns were handwritten, with a breakdown of allowances.
Here are some extracts from the images below, explaining different allowances that were available in 1964/1965. Daughter’s services: An allowance of £40 is given if you maintain a daughter who lives with you because you are, or your wife is old or infirm. Travel expenses: The amount of any additional travel expenses to and from work which you have to bear out of your own pay because you live or work in a different place owing to the war (Maximum £10).
| Professional in Payroll, Pensions and Reward | October 2024 | Issue 104 52
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