FEATURE TOPIC
This issue, Jerome spoke to: Georgina Codling MCIPP, head of payroll and people operations, St. James’s Place Wealth Management Ian Hodson MSc ChFCIPPdip, head of
l helping with regards to ‘dummy’ payslips or simulations l showing the impact of benefits on gross and net pay l helping employees make informed decisions. IH: I would always encourage payroll colleagues to be part of any staff induction programme. That begins the communication process of making colleagues aware of the benefits on offer that may interest or financially support them. Thereafter, the education starts with payroll helping individuals understand how pay aspects work, such as tax, salary sacrifice etc, and this will place individuals in a strong position to select appropriate benefits and be aware of the wider implications. JR: Employees need to be encouraged to examine which benefits give them access to discounts and savings on shopping and leisure so they can maximise their salary, as well as their enjoyment of life. Payroll can encourage take-up by ensuring the whole business is aware of the various benefits available through their total remuneration package, and that the employer is optimising messaging and thus, brand competitiveness. Green initiatives which might lead to home energy discounts and green home to work travel options might be particularly popular, for example. HW: It’s important employees understand the full value and costs of benefits on offer. Being able to offer a flexible benefits package which allows the individual to choose their benefits according to their needs is key. Holding advice sessions where employees can discuss their needs and be supported in the choices they make is integral to making this work most effectively. What role does technology have in supporting payroll teams to process benefits? GC: Automation, provided via technology, is very important to ensure the processing of benefits is accurate and timely. If employees can select and deselect benefits via self-service and the technology can also police the rules and regulations surrounding those benefits, such as earnings not falling below national minimum wage (NMW), this aids payroll. IH: There are now many different benefits that can be offered, and many of them cost no more to the employer than the
schemes, such as but not limited to: l purchasing additional leave l well-being initiatives l environmental benefits, for example, green car schemes. It also has a part to play on the education front, and imparting knowledge in respect of financial well-being, and developing the personal skills to be financially educated that will be valued on an individual level. Justine Riccomini: There are numerous ways in which an employer can improve its brand. Aside from an excellent and flexible working culture and values, the employer can expand on the employer value proposition by offering more benefits in kind which can potentially be put through payroll in numerous ways. The ones with tax and NI breaks might count as deductions from gross pay or as partial deductions from gross pay, while those without tax breaks could be processed through payroll where they’re not reported on P11D. Payroll can be instrumental in changing entrenched employer viewpoints and supporting organisational change by offering seamless transition processes – making the executive team look good. This involves: l increased technical payroll knowledge l appropriate software l confidence within the payroll team to make the job look effortless – thus gaining the respect of business leaders. Heidi Watson: I believe it’s extremely important for a payroll team to be more than just payroll. By that, I mean not just there to pay employees, but also to share information and guidance to support employees to thrive financially – for example: l articles in employee newsletters or staff emails giving advance notice of tax or NI changes l guidance on how to access tax free childcare, or l information to support pension investments and choices. How can payroll support individuals to tailor the most advantageous benefits package for them? GC: There are numerous ways, such as: l increasing employee knowledge l helping employees to understand tax, NI, pensions deductions and the impact of salary sacrifice schemes l financial well-being
reward, University of Lincoln Justine Riccomini FFTA AIPA
Being represented as a good employer is now more important than ever in competitive labour markets – how do you think payroll teams can support widening the employee offering? Georgina Codling: Payroll makes its biggest impact by paying accurately and on time. Its first interactions with a new starter (e.g., answering questions regarding the first payslip), demonstrate how payroll adds value to the onboarding process, rather than it just being the job of the recruitment and people division. Alongside the tax team, payroll is the most knowledgeable about the positive impact that employee benefits can have for employees, regarding salary sacrifice and flexible benefits, and the tax and National Insurance (NI) savings they bring for both employee and employer. Currently, I see payroll as supporting benefits via their administration, in the accurate statutory application of their rules, via the payroll system or with HM Revenue and Customs (HMRC). It would be nice to see payroll support the education of employees, explaining the savings possible. There are considerations with regards to resourcing. Some payroll teams are very slim and only resourced for the end-to-end production of payroll. To succeed, sufficient resource needs to be in place. Ian Hodson: The labour markets are competitive, and I think we often make assumptions this is all about base pay. However, there are many more examples where initial judgments are made more about the people and culture of the organisation, the values, and principles, of what the organisation stands for ethically, along with access to personal and professional development. Payroll has a huge part to play in supporting this in respect of the operational facilitation of Chartered MCIPD ChFCIPP, head of tax (employment and devolved taxes) at the Institute of Chartered Accountants of Scotland (ICAS) Heidi Watson MCIPPdip, head of payroll and benefits, Swan Housing Association .
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| Professional in Payroll, Pensions and Reward |
Issue 85 | November 2022
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