REWARD
Children: An allowance varying with age is given for each child, stepchild or adopted child as follows: l not over 11 on 6 April 1964 (or born during the year ending 5 April 1965) - £115 l over 11 but not over 16 on 6 April 1964- £140 l over 16 on 6 April 1964 (if receiving full time education or being trained full time for not less than two years, for a trade etc) £165. Housekeeper or person looking after children: An allowance of £75 is given if: l you are a widow and have a female relative or some other female personal resident with you as a housekeeper or to look after a child l if you are unmarried and have your mother (being a widow or separated from her husband) or some other female relative resident with you to look after a brother or sister of yours l if you are entitled to £320 personal allowance and your wife is totally incapacitated and you have a female person resident with you to look after a child. The development of payroll Since beginning my payroll journey eight years ago, we have advanced from a small side service of an accountancy firm to a standalone, digital payroll bureau operating nationally. This is due to advancements in technology, efficient processes introduced and opportunities to gain an education in payroll. I began by learning on the job. One of my first tasks involved enveloping individual payslips into pay wallets and posting them to clients, along with pay as you earn (PAYE) due for payment. With nearly 200 payroll clients at the time, this was a lengthy
process, which came at a great cost to the business in terms of stationery and postage and led to many papercuts! Looking back now, the risk of data breach from posting payroll information was extremely high, however this was a common way for individuals to receive their payslips, as clients would then add the correct cash amount to the pay wallet and distribute these to employees. Most individuals are now paid via a Bacs transfer from their employer. Paying employees in cash is becoming a thing of the past, reducing the risk of incorrect payments due to the handling of the money. However, with increased Bacs payments being made to employees, the client / bureau should ensure data security, working towards being Bacs approved to ensure that they have the most efficient processes in place when paying employees’ wages. Becoming a digital payroll bureau, employees now receive their payslips directly to their personal email. Employees who access their payslips via an app can update their contact details, ensuring the correct data is stored for everyone. Clients can view their PAYE online and keep track of payments due to HMRC. Payslips can be customised and tailored to suit the client, from adding their company logo to having holidays accrued and taken available on payslips for employees to view. Within certain software, P60s are automatically distributed to employees after the payroll year end has been processed. These were previously distributed by post to the client, who was advised to distribute these to employees before 31 May. Now a digital process, employers are advised that employees have received these directly. However, employers should check with
employees to ensure they have received them before 31 May. We have changed our year-end process to accommodate these digital changes, ensuring our checks are being carried are being carried out and our high standards are met. Tax codes can now be imported into the payroll system, reducing the wait for new tax codes arriving by post and allowing payroll data to be kept up to date in real time. Payroll software can now produce journals that link to other software to help with other roles such as bookkeeping and accounts. With the development of apps, personal tax information can now be accessed at individuals’ fingertips, making it easier for them to view their tax code breakdown. Advancements in technology enhance cyber security threats, therefore payroll professionals should take preventative action to help reduce the risk of data breaches. There are free online courses that can be carried out to make employees more cyber aware. Alternatively, paid accreditations are available, such as the Cyber Essentials Certification, to ensure information technology systems and processes are up to date and complaint in the digital world. Payroll qualifications have become prominent for those working in a payroll environment. It’s fantastic to see the range of qualifications that are now available. Everyone working in payroll should be aiming to achieve these at the level they are working at to ensure compliance, competency and confidence in their role. With the introduction of AI, it is interesting to see where the future is heading for payroll, which I’m sure will come with some exciting twists and turns for us all. n
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| Professional in Payroll, Pensions and Reward |
Issue 104 | October 2024
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