The Chartered Institute of Payroll Professionals
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“What will have the biggest impact on payroll following the Chancellor’s budget and spending review on 27 October 2021?”
The majority of payroll professionals (55%) confirmed that the increase in the NLW to £9.50 per hour from April 2022 would have the biggest impact. This was followed by 20% who confirmed the impact of inflation rising to an average of 4% over the next year would affect the work of payrollers most significantly, due to the knock-on effect this could have on salary increases.
16% stated that the processes surrounding top-up payments to certain individuals in Net Pay Arrangement (NPA) pension schemes would have substantial effects, whilst only 8% felt that processing public sector pay increases would affect them most.
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Quick Poll: What type of pension scheme is operated within your organisation? 12 November 2021
One of the issues within payroll being tackled in this autumn’s Budget was the net pay anomaly for workers who earn over the auto-enrolment threshold, but under the personal allowance for tax. The Call for Evidence response was released in October.
These issues may need to be considered when deciding which pension schemes to offer to employees.
The policy team wants an insight into which pension scheme types your organisations is operating, and so there is a new Quick Poll available on our news page.
The Quick Poll should take less than a minute to respond to and gives you the opportunity to have your say. Thank you in advance for your participation.
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Quick Poll results: what type of pension schemes are you operating? 20 December 2021
The policy Teams most recent Quick Poll focussed on pension schemes. In particular, we wanted to see how many organisations need to be aware of the net pay anomaly discussed within the autumn Budget.
The most popular single scheme was salary sacrifice with 34% of the responses running this scheme type. Following closely was relief at source with 25%.
Net pay arrangements received a relatively small 9%. However, 32% of responses indicated multiple schemes were operated, within this proportion some will be net pay arrangements. This is lower than we expected, and while it may affect less people than anticipated, it is a good step forward that the government is looking into addressing the net pay anomaly. If you are one of the organisation who operates a net pay arrangement scheme, you can read more about the issue in the Call for Evidence response. .
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The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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