The Chartered Institute of Payroll Professionals
News On Line
28 March 2022 The Health and Social Care Levy came as a shock to the payroll world, followed by an immediate flurry of questions. With all the fuss, we wanted to see how many of you are intending to communicate the changes to your employees and how. We believe that strong communication between payroll and employees/clients is essential, and with this change having such a far-reaching impact, it is important that all involved are educated. Of course, all this was before the chancellor of the exchequer announced further changes to the National Insurance (NI) system.
A massive 82.5% of respondents indicated that they will be communicating the changes to employees in some form.
Break down as below: Format
Percentage responded
Recommended payslip message
39% 5.5% 24%
Modified payslip message
Payslip message plus additional communications
Communication other than payslip
14% 82.5%
5% of respondents were from a payroll services provider (bureau) and communications will differ from client to client. This may depend on the software used, the clients needs, the employees paid or personal preference from each company. Finally, 12.5% replied that they will not be including a payslip message or issuing other communications to their employees/client. There has been controversy over the recommended message, whether it is too politicised or if it is the place of the company to communicate government policy. While we understand these concerns, a payslip message could have a positive impact on the queries received by payroll in April when the changes come into effect. As the message provided by HMRC is only a recommendation, this is free to be altered or re-written as required. With the cost of living being a hot topic in the media, it is highly probable that most employees are aware of the changes, but this does not mean that the changes understood. If steps can be taken now to reduce queries later, especially queries relating to deductions we cannot change, shouldn’t we take them?
Thank you to all who took the time to respond.
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New Quick Poll: Changes to National Insurance thresholds 16 March 2022
The Spring Statement took us by surprise with the shock announcement that the Primary Threshold (PT) for National Insurance (NI) would be aligned with the income tax allowance from July 2022.
Within the subsequent documentation, the government cited that July was the earliest this could be implemented to allow payroll software developers time to accommodate the change. This caused some backlash as software providers c ommented that these changes could be implemented “within hours”. Do you think the payroll industry could accommodate an earlier implementation of the changes? We realise that this can be a very complex question to answer, so please select the answer that best fits with your thoughts. Head over to our news page to complete our quick poll, it takes less than a minute of your time and gives us valuable insights into what payroll professionals are thinking.
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The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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