Professional July-August 2019

Official publication of The Chartered Institute of Payroll Professionals

in Payroll, Pensions & Reward

Issue 52 July/August 2019

Benchmarking

Mental health in the workplace Build a wellbeing strategy

AE – what next Contribution levels

Tipping Distribution

CIPP update | Policy hub | Career development

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Editor’s comment

You’ll find informative articles on this issue’s feature topic of payroll data and benchmarking from page 35. Jason’s message below additionally identifies relevance and application. Increasingly, data reveals the growing issue

article on page 26. If you need reassurance of the significant role payroll plays, read the article on pages 14/15. Which prompts me to remind and encourage you to celebrate National Payroll Week – see page 4 for details.

of mental ill-health. I’m sure we have all witnessed and maybe experienced close up the impact a worker’s mental ill-health can have on colleagues and performance. Some of us may have suffered or endured such ill-health, whether our own or that of a friend or family member. I recommend as essential reading the

Mike Nicholas MCIPP AMBCS (editor@cipp.org.uk) Editor

Do you know how well your payroll and pensions team are performing? Whether providing an internal service to a business, or as an outsourced arrangement, knowing the key statistics on performance is important in today’s business landscape. This issue of the magazine looks at the level of data Chair’s message

promote feedback within your teams for improving service delivery? All of these form the basis of ensuring you know how well you and your team are doing. Having a baseline of competence also gives you a place to start when considering next year’s goals. Should you be striving to improve quality or responsiveness or other indicators that demonstrate the quality and success of the department? With the above known and publicised you are also able to drive performance across the team and ensure the culture of quality and excellent service delivery is embedded. Data is just data; it is the interpretation and use of that information that enable the best teams to thrive. There is a statement that ‘feedback is the breakfast of champions’ – we should all actively look for that to improve each and every day. I hope you enjoy all the articles available in this edition and if you are a Chartered, full or fellow member, make sure you take part in our benchmarking survey available now – see page 38 for details.

available to teams today – the exponential growth of data and how to use it as well as the importance of knowing key metrics for day to day delivery within your teams. Standard metrics are volume based. How many employees paid, how frequently and to what accuracy as an example. However, key to demonstrating how good your team is, is how well educated the workforce are, and how responsive is the service to them are equally important. Are your teams providing updates regularly to keep the workforce informed of upcoming changes? Are you embracing technology to communicate more quickly and keep the workforce aware of changes that may be being considered or happening within the pensions and payroll arena? How quickly are answers provided to queries raised and do you measure the level of satisfaction the employee felt at the point of contact to receive immediate feedback and act upon it? How many complaints or commendations have the team received and do you actively

Jason Davenport MCIPP MIoD (jason.davenport3@cipp.org.uk) Chair, CIPP

I am really looking forward to a key event attended by the chair, senior CIPP directors and myself which is our ‘weekend school’ for our CIPP tutors – known as tutor training. Our tutors continue to provide world class service to those members undertaking our payroll or pension Foundation Degree is and are fundamental to our qualifications process. CEO’s message

tutors have a busy day job yet make time to support the students making their way through their respective levels of qualification – and deserve a tremendous thank you for contributing to our students’ success as well as giving back to the payroll and pensions industry. We’ve also finished presenting at a number of successful and informative National Forums around the country. Including the upcoming final webinar, more than 1,000 members have participated in these events, so it’s been great to see so many of you making the most of this member benefit. Ably supported by the policy and research team, as well as hosted by CIPP board members, these events were gratefully supported by a number of industry sponsors who we look forward to seeing again at the remaining events of the year. Enjoy your summer!

With over 100 tutors expected, a comprehensive agenda is planned. This includes a welcome and induction to new tutors, before we move into workshops on topics such as ‘how to improve tutoring skills’, the ‘psychology of learning: how students learn and different learning styles’, ‘online learning – a different style of development’ and very topically, ‘mental health in the workplace (including how to support a student with mental health conditions)’. It is paramount that as the Chartered body for payroll and pension professionals we ensure our tutors – who, of course, are all members – also continue to receive this training to ensure our members receive the very best of support as they embark upon their respective Foundation Degrees or any other CIPP qualification. It is also key to their continuous professional development. Most of our

Ken Pullar FCIPP (ken.pullar@cipp.org.uk) Chief executive officer, CIPP

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| Professional in Payroll, Pensions and Reward |

Issue 52 | July/August 2019

in Payroll, Pensions & Reward PROFESSI NAL

Also available online at payrollpensionsandreward.org.uk

Contents

July/August 2019

44

Could benchmarking improve employment relations and reduce tribunal claims?

Jade Linton explores

Features

16

20

18

Tipping Diana Bruce explores the process and proposals

The hidden role payroll plays supporting families Helen Hargreaves reveals details

Deductions from pay SamanthaMann discusses the legalities

22

26

30

Capping public sector exit payments John Harling reveals details of proposed legislation

Mental health in the workplace Jerome Smail researches the extent and implications

AE – what next? Henry Tapper looks at initiatives

| Professional in Payroll, Pensions and Reward | July/August 2019 | Issue 52 2

34

31

Chief executive officer Ken Pullar FCIPP CIPP board of directors Jason Davenport MCIPP MIoD Stuart Hall MCIPPdip Ros Hendren MSc, FCIPPdip, CMgr FCMIdip, FHEA Dianne Hoodless MSc ChFCIPP FHEA Liz Lay MSc FCIPPdip Karen Thomson MSc ChFCIPP, FHEA Cliff Vidgeon BA (Hons) CMA, ACIS, FCIPP Ian Whyteside MCIPP, FMAAT, ATT Editor Mike Nicholas 01273 412 836 | editor@cipp.org.uk Advertising Jill Bonehill 0121 712 1033 | advertising@cipp.org.uk Design James Bartlett and Nicole Davis design@cipp.org.uk Printing Warwick Printing Company Ltd

Cyberpicketing, redundancy, causal link NicolaMullineux outlines decisions

Why so complicated? Ian Neale explains why and how for pensions

39

36

Preventing employees discussing their salaries Danny Done discusses and offers advice

Doing more with payroll data Glyn King on how to do this even if systems hold you back

42

40

Useful contacts

Membership membership@cipp.org.uk 0121 712 1073 Education education@cipp.org.uk 0121 712 1023 Training admin@cipp.org.uk 0121 712 1063 Events events@cipp.org.uk 0121 712 1013 Marketing and sales marketing@cipp.org.uk 0121 712 1033 General enquiries info@cipp.org.uk 0121 712 1000

How blockchain preserves peace of mind for PII Ian Smith explains

Benchmarking Don Macarthur encourages participation

Regulars

01 Editor’s comment, Chair’s andCEO’s messag e

29 Industry news 30 Pensions insight 33 Reward insight 38 Events horizon 39 Feature articles

Events, news and developments

05 Membership insight

Fiveminutes with, On your behalf, Advisory

cipp.org.uk @CIPP_UK

10 CIPP update 12 Career development insight PAS case study, Diary of a student, CPD

Articles Please support this magazine so that it can continue to be a part of your membership package. Trademarks The CIPP logo, the initials ‘CIPP’ and the words ‘Professional in Payroll, Pensions and Reward’ and ‘CIPP Consult’ are trademarks of the Chartered Institute of Payroll Professionals. Copyright: The Chartered Institute of Payroll Professionals 2019. The Chartered Institute of Payroll Professionals, CIPP, Goldfinger House, 245 Cranmore Boulevard, Shirley, Solihull, West Midlands, B90 4ZL. Switchboard 0121 712 1000 Fax 0121 712 1001 Copyright This magazine is published by The Chartered Institute of Payroll Professionals in whom the copyright is vested. All rights reserved. No part of this publication may be reproduced, stored in a retreival system, or transmitted in any form or any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of the publisher. The views expressed in this publication are not necessarily those of the CIPP or the editor. The information and comment contained in this publication are given in good faith, their accuracy or completeness cannot be guaranteed.

Payroll data and benchmarking 52 Confessions of a payroll manager

16 Payroll insight 23 Payroll news

Additional online content 12 Candidate experience 32 Pension news 33 Work-life integration

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| Professional in Payroll, Pensions and Reward |

Issue 52 | July/August 2019

L

WEEK 2019

#NPW19 # KeepUKPaid # BePayroll

WE’RE TURNING 21 HELP US CELEBRATE

The CIPP’s National Payroll Week is turning 21 this year and we need your help to make it the biggest and best year ever. The CIPP is proud to have continually raised the profile through this special week where organisations across the country celebrate their payroll team and the payroll industry as a whole; which contributed in the region of £250bn* to the UK economy in 2017-18. Over the 21 years, we have seen everything from cake sales, quizzes and staff parties to competitions and prize draws! The world is your oyster and we want to see how you celebrate the occasion, tweet your pictures using the hashtag #NPW19 . Whatever you do to celebrate this incredible week to highlight payroll and pension professionals do more than just push a button, do it with pride and fly the flag for payroll. If you are a member of the CIPP, request your FREE National Payroll Week pack to help maximise your celebrations to the fullest.

Request your pack today at nationalpayrollweek.co.uk

HEADLINE SPONSOR

PARTNER

MEDIA PARTNER

SPONSORS

LET US KNOW Show us how you’re

celebrating for a chance to feature in Professional magazine. Send your pictures and 200 word summaries to npw@cipp.org.uk.

R E V I S E D COU R S E

Membership focus

LEAD YOUR PROFESSION LEAD YOUR BUSINESS Take advantage of the apprenticeship levy by taking the CIPP’s MSc in Strategic Leadership apprenticeship route and equip yourself with the skills and knowledge to help shape the future of their organisation at a strategic level.

5 minutes with…

Jack Grinnell ACIMACIPP Marketing and membership team leader

ENROL TODAY

Overview of your career, work history and background I’ve had quite a varied work life. I started work age fifteen at a local pet store moving to a local electronical repair company as a field service engineer repairing various electronical goods across the midlands and Wales. Before joining the CIPP I worked with my uncle doing garden machinery repairs, fixing all sorts of machines and engines. When did you first become involved with the CIPP? In 2015, I wanted a change in career and applied for a marketing apprenticeship at the CIPP. I was lucky to be given a chance even though my background wasn’t relatable at all. Since joining I have progressed through the Institute to become the marketing and membership team leader which is a job I thoroughly enjoy and find extremely rewarding. strategy for membership and marketing for our products and services. We have a real focus lately on developing our offerings to ensure members are getting the most out of the Institute. We’ve recently implemented the #BePayroll campaign as a way to get members involved and tell us how being a member has helped with their professional and personal lives. I get to be involved in all areas promoting the vast offerings we have and developing the campaigns. I get to play a vital part in showcasing our products Tell us about your role at the CIPP My role is all about implementing the

and services and to help in implementing strategy.

What do you think you can bring to the future strategy of the CIPP? Since joining the CIPP there have been several changes that I like to think I’ve had involvement in ensuring were made possible. I have a lot to offer the CIPP and the future strategy as we focus on growing our membership and the benefits offered. I write this shortly after a strategy meeting looking at the next few years’ focus – all I will say for now is watch this space. What does the future hold for the future of payroll, pensions and reward? I am constantly hearing at the moment about artificial intelligence and its place in the payroll world, so this is definitely on the horizon for the profession – it will be interesting to see how this ends up looking. I can say with certainty that the CIPP will be in the profession’s future to offer a helping hand. What do you do in your available time to unwind? While away from the office I enjoy spending time with my son, fiancé and pet labrador – having become a father for the first time, last year. I do various strongman and powerlifting training which is something I got into a few years ago. It has become a real passion of mine for various reasons, one of which is that it allows me to consume vast amounts of food and get away with it. n

Eligible for apprenticeship levy funding

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For more information or to enrol: Visit: cippqualifications.org.uk Email education@cipp.org.uk

Call: 0121 712 1023 Live chat with us

cipp.org.uk @CIPP_UK

Issue 52 | July/August 2019 | Professional in Payroll, Pensions and Reward | 5

MEMBERSHIP INSIGHT

On your behalf

Policy team update

The CIPP policy team sets out details of important consultation on off-payroll working and theminimumwage

PAYE Business Tax Account In the article titled ‘Employers stay in the PAYE picture’ – which can be found in the April issue of the Employer Bulletin (http://bit.ly/2IcZvkI) – HM Revenue & Customs (HMRC) asserts that: “It’s quick and convenient to check your liabilities and track your payments. The ‘PAYE for employers’ section of the Business Tax Account shows your account both annually and month by month. On your payments history page you can see each individual payment recorded so you know we’ve received it.” Anecdotal evidence from members and employers however tells us that there is still much discontent with the accuracy and reliability of the Business Tax Account (or ‘dashboard,’ as it is also simply called). To try and get a handle on the level of dissatisfaction on the results the dashboard provides, we ran a poll on our website in May, to which we received 232 responses revealing that when checking their PAYE-for-employers section: ● 28% say results are never accurate ● 31% say results are sometimes accurate, and ● 10% say the results are now accurate having established a regular pattern. However, 16% have never checked their section and 15% have given up checking. Of the 31% who indicated that results are sometimes accurate, we would hope that within that group there are some who find 100% accuracy, to add to the 10% group who are now accurate

after establishing a regular pattern. It is, however, very disconcerting to see that almost the same amount, 28%, find that results are never accurate; confirming the unrest that we have found to be out there with some users of the dashboard. Our polls are limited as they do not cater for follow-up questions, but this is certainly an area which requires further investigation. We have fed these results on to our contacts within HMRC and will bring you updates as and when we can on this topic. Ethnicity pay gap reporting Back in 2017, the Race in the workplace: the McGregor-Smith review (http:// bit.ly/2wsLtn0) (‘the 2017 review’) recommended that the government should legislate to introduce mandatory reporting of ethnicity data. Recommendations on monitoring however tells us that there is still much discontent with the accuracy and reliability of the Business Tax Account... ...evidence from members and employers

ethnicity and pay include the following: ● Listed companies and all businesses and public bodies with more than fifty employees should publish five-year aspirational targets and report against these annually. They should also publish a breakdown of employees by race and pay band. ● All employers should take positive action to improve reporting rates amongst their workforce, explaining why supplying data will improve diversity and the business as a whole. ● ● All listed companies and businesses employing more than fifty people should publish workforce data broken down by race and pay band. At the time, the government said that the case had been made for ethnicity reporting and it expected businesses to do this voluntarily. It did, however, ask Business in the Community to assess what steps employers have taken to haul down workplace barriers and harness the talent of a diverse workforce. In 2018, a one-year-on review of how employers in the UK are performing against the 2017 review’s recommendations (http://bit. ly/2KcGb7f) found that barriers persist in the workplace. This review (‘the 2018 review’) included a number of calls to action for business, and contributes to the government’s industrial strategy (http://bit.ly/2IdZ5rM) goals of boosting productivity by backing businesses to create good jobs and increase the earning power of people throughout the UK with investment in skills, industries

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| Professional in Payroll, Pensions and Reward | July/August 2019 | Issue 52

Policy hub

and infrastructure. The 2018 review found that just 11% of employees reported that their organisation collects data on the ethnicity pay gap ratio. In particular, those in small organisations are much less likely to report that their organisation collects data on the ethnicity pay gap ratio – just 8% do. Of those who work in an organisation that collects data on the ethnicity pay gap, 50% reported that their organisation publishes the data collected. As only a small number of employers had chosen to publish ethnicity pay data voluntarily, in October 2018 the government published – alongside a Race in the Workplace Charter – a consultation (http://bit.ly/2EJHjvF) on ethnicity pay asking how a new mandatory reporting requirement should operate. The government invited views on mirroring some or all elements of the gender pay gap regulations such as proposing the same threshold of 250 employees or above, not fifty or above as recommended in the 2017 review. The CIPP surveyed members to help inform our response. From an administrative burden perspective comparability with the methodology applied for gender pay gap would be preferred by our members. However, our members are pragmatic and recognise that this will not achieve the same results because of the different challenges presented by ethnicity classifications. Our key conclusions and recommendations in our response (http://bit.ly/2WeT87M) are as follows: ● ● There must be value achieved through the efforts of the software developers, payroll and HR (human resources) professionals and so we recognise different methodology will be required. ● ● If government consider that the time is right to deliver another reporting obligation on employers, in the name of transparency, then significant time and structured planning will be needed. Rushed delivery will not achieve accurate outcomes. ● ● Lessons need to be learned from the roll-out of gender pay gap reporting with government engaging in greater detail

with all affected stakeholders as they continue to consult. ● ● Employers’ pay processes vary enormously in size and complexity. The added challenges for gathering accurate ethnicity data as identified within the consultation paper will add further layers of complexity. In advance of any mandatory obligation we asked payroll professionals, businesses and employers through a website poll earlier this year, if their business is planning to report its ethnicity pay gap voluntarily and gave the options for large and small employers as the consultation suggests government may follow the 250+ rule. We received 347 responses: ● ● 13% of respondents with 250 or more employees said they would be reporting voluntarily within the next twelve months, with 2% in this category saying they would report in the next two years ● ● 21% of large employers said they would not be reporting voluntarily in the next twelve months or two years. Unsurprisingly, no one from the ‘less- than-250-employees’ bracket went for the option to say they would be reporting voluntarily; and when directly asked if they would not be reporting, 37% said they would not. The remaining 37% of respondents were unsure or didn’t know what their company is planning. Next steps At the time of writing, the jury is still out on what mandatory reporting may come into force as the government is still considering the responses to its consultation. We said at the time of submitting our response that we see this consultation as the start of a conversation and not the end of it – let us hope this observation is taken on board. How you can become involved in consultation ● ● Surveys – We know it must feel like we bombard you with surveys sometimes, but there really is strength in numbers. When we submit a

consultation response, we don’t say what we in the policy team think, we say what our members and the wider payroll profession tell us. The more respondents tell us, the more credible our argument is, and the bigger the impact it may have. So please do spare time if you can to complete as many of our surveys as applicable – it is your opportunity to help influence and shape the polices that effect what you do every day in your profession. ● ● Policy Think Tanks – These roundtable events are a benefit for full, fellow and Chartered members. They are meetings limited to around twenty people and are usually attended by policy leaders from the relevant government department who are interested in exploring issues with those who actually have to put the policies into practice. The Think Tanks are a chance for HMRC, the Department for Work and Pensions, the Department for Business, Energy and Industrial Strategy, HM Treasury, the Low Pay Commission and others to explore issues and understand the impact various policies or proposed policy changes can and may have on those who work in the industry. Members can and do influence government thinking, and there is a real opportunity to affect change going forward through these meetings. ● ● Consultation forums – A consultation forum is a meeting held usually every three months or so which allows the attendees to discuss issues arising in a specific arena. For example, HMRC holds quarterly forums for statutory payments, student loans, issues affecting agents, IR35 and all things off-payroll, and another covering all payroll topics: the Employment and Payroll Group. The forums are attended by key stakeholders such as the CIPP policy team and we bring issues to the table to be discussed, just as much as HMRC bring issues they want to explore. Are there any issues you would like us to take up on your behalf? We welcome your discussion points, but just a health warning: individual cases aren't discussed; but issues that could have a wider impact on the payroll profession as a whole, or on particular sections or segments are discussed. Questions, comments, issues – please email us at policy@cipp.org.uk . n

...influence government thinking, and there is a real opportunity to affect change going forward...

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| Professional in Payroll, Pensions and Reward |

Issue 52 | July/August 2019

MEMBERSHIP INSIGHT

type. You cannot change the plan until you have received notification from HM Revenue & Customs (HMRC) to change it to the correct loan type. Q: An employee who is currently on maternity leave has brought in a sick note saying she wants to suspend maternity leave and pay and be considered sick until she resumes her maternity leave. Can she do this? A: The employee is in the disqualifying period for SSP whilst in the statutory maternity pay (SMP) period and can only take statutory maternity leave in the set 52 weeks. You must pay her SMP and not SSP even though she is sick. If she is still sick after the end of the SMP period, she would not be due SSP. She would have to return to work for at least eight weeks before she would be eligible for SSP. Q: An employee is leaving, and the termination arrangements are being negotiated through a settlement agreement. The employee has incurred legal costs (solicitor fees) regarding advice in connection to the termination of the contract, which the employer has agreed to pay. Would this be considered a benefit which is subject to tax and NICs? A: This payment would come under section 401 of the Income Tax (Earnings and Pension) Act 2003. It would be exempt from tax and NICs and no reporting in the P11D return would be necessary if these conditions are met: ● ● the legal costs were invoiced directly to the company ● ● the payment was made directly to the solicitor ● ● the charges in the invoice are in connection to the termination of the employment ● ● the payment of the fees are made under a term of the settlement agreement. Q: Our company has directors who live and normally work abroad but come to the UK every three months to attend board meetings. How should we treat their NICs? A: If a director only attends board meetings in the UK (including Northern Ireland) and the board meetings are kept to a maximum of ten with each visit

Advisory Service is available 9a.m. to 5p.m. Mondays to Thursdays, and 9a.m. to 4.30p.m. on Fridays * . Call 0121 712 1099 , email advisory.service@cipp.org.uk or visit cipp.org.uk to live chat.

Advisory

*please see summary at cippmembership.org.uk for details.

Q: An employee has recently relocated to the UK and on their behalf our company has reimbursed relocation expenses which exceed £8,000. With regards to the P11D return we believe that we will need to report the qualifying costs over £8,000 and this will lead to the employer paying class 1A National Insurance contributions (NICs). Does this also mean that the employee will need to pay tax on this amount or will it be exempt as they are expenses incurred in relation to their relocation of employment? A: If you reimburse exempt/qualifying expenses that are above the £8,000 limit then these are reportable in the P11D return and class 1A NICs are due for the employer. The excess is also taxable for the employee – use box J. If you reimburse relocation expenses that are not exempt (e.g. non-qualifying expenses) these are reportable in the P11D; they will attract tax for the employee and class 1A NICs as well for the employer – use box M. Q: My employer, which has just changed its sickness absence policy to remove the need to submit self- certificate forms, wants to ensure that this will not impact on our ability to pay statutory sick pay (SSP) to employees further down the line. We have a contractual sick pay scheme and often have employees who go on long-term absence. Can you confirm that for the first week of absence, employees do not have to provide a self-certification form in order for us to pay SSP?

A: Under section 14 of the Social Security Administration Act 1992 employees who claim SSP must provide evidence of incapacity if required by their employer. Your revised policy will not impact on SSP being paid alongside the company sick pay scheme under this new policy. If you decide to ask for evidence this should be in accordance with regulation 2(1) of the Statutory Sick Pay (Medical Evidence) Regulations 1985, which requires that evidence shall be in the form of a statement given by a doctor, or by such other means sufficient in the circumstances of a particular case. Q: Can a company claim employment allowance for a payroll that only has two directors and no other staff? A: Yes, I can confirm that as such a company can claim the employment allowance even where all employees are directors and where both of earn above the secondary threshold for class 1A NICs. This is covered in guidance at item 3 – The additional employee test – found in the following link: http://bit.ly/2QzCs4Z. Q: A new employee has complained about his student loan repayment. Plan 1 was applied as it was not specified in the starter checklist which plan he had. If I change the plan to the correct plan 2 next month, he won’t reach the threshold to pay any student loan. Can I reimburse the amount paid in the previous month? A: You operated the student loan plan 1 correctly as that is the default if the employee does not indicate which loan

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| Professional in Payroll, Pensions and Reward | July/August 2019 | Issue 52

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Policy hub

lasting no more than two nights, or if the director only attends one meeting and the duration is no more than two weeks, then the payment would be exempt from NICs. Q: Please can you confirm that the £29.00 statutory guaranteed pay only relates to Northern Ireland, and that the rate for England, Scotland, and Wales remains at £28.00? A: A limit of £29.00 per day applies to the whole of the UK from 6 April 2019. These following links are to the legislation applicable to England, Scotland, Wales and Northern Ireland. ● ● http://bit.ly/2YZJvHi (The Employment Rights (Increase of Limits) Order 2019) ● ● http://bit.ly/2KiiScb (The Employment Rights (Increase of Limits) Order (Northern Ireland) 2019). Refer to the Schedule in each piece of legislation. Q: Can a couple choose to take statutory shared parental pay (SShPP) and statutory shared parental leave (SShPL) in a scenario where the woman would work two days a week and the man works three days a week? Also, for the first six weeks of pay (which is at the higher rate) can they elect this to be the man’s wages rather than the woman’s? A: Shared parental pay and leave are weekly rather than daily entitlements, and the parents can only take leave in blocks of weeks. They could both be on leave at the same time but couldn’t take it in the way that has been suggested in the question. The payment for SShPP is a set rate of the lesser of £148.68 or 90% of average weekly earnings. To receive SShPP the mother has to curtail SML and SMP; therefore, if she does this after two weeks of SML and SMP the further weeks would be at the applicable SShPP weekly rate only. Q: Would pay as you earn (PAYE) apply to drawdown pension payments? For example, a one-off payment (i.e. not all the pension pot withdrawn) has been taxed on a monthly frequency and not all the income tax personal allowance applied, resulting in the pensioner paying a large amount of income tax under PAYE. A: The PAYE regulations apply to pension

flexibility payments as they are classed as taxable income. There are three situations that could occur: ● ● the individual withdraws all the pension pot and is in receipt of state pension ● ● the individual withdraws all the pension pot and has other pension income or employment income ● ● the individual does not withdraw all the pension pot. If the individual thinks that too much tax has been taken in respect of the drawdown payment, s/he would need to contact HMRC at the end of the tax year. One way of accessing a tax refund is by using form P55 in cases where not all the pension pot has been withdrawn. Q: Our company are finalising our P11D returns for the tax year 2018–19 but there has been some confusion over those employees who earn less than £8,500 per annum for whom we need to report a benefit in kind. Is the employer exempt from paying class 1A NICs on these benefits? A: The £8,500 threshold for P9D returns was removed from April 2016, so this exemption no longer applies (except for ministers of religion). The result is that all employees provided with any benefit in kind that is not payrolled must have the benefit reported in a P11D return. So, irrespective of the level of the employee’s earnings, and regardless of whether a benefit in kind is payrolled or not, class 1A NICs are due. Q: An employee who turns 21 on 15 July will be paid earnings on 26 July. At what point does the class 1 NICs category change? A: The relevant trigger is the employee’s age on payday. In your example, the employee turns 21 before payday, so the NI category should be changed from H to A and class 1A NICs applied for both the employee and the employer. n

Enrol now for spring visit cipp.org.uk/FDpayroll for full details

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| Professional in Payroll, Pensions and Reward |

Issue 52| July/August 2019

*correct at time of publication

CIPP update

Payroll Assurance Scheme

THE CIPP are pleased to announce that Cantium Business Solutions have successfully achieved the prestigious Payroll Assurance Scheme (PAS) accreditation. Ken Pullar, CIPP chief executive officer (CEO), said: “We are thrilled that Cantium Business Solutions have joined the ranks of organisations to achieve this respected accreditation. It is imperative that organisations comply with government legislation and the Payroll Assurance Scheme is designed to help companies do just that.” Visit payrollcompliance.org.uk or email info@cipp.org.uk to find out more about the Payroll Assurance Scheme.

CIPP raising profile through industry partnerships

THE CIPP is delighted to announce that the Institute’s 21st National Payroll Week will be supported by The Payroll Centre and the Global Payroll Association as supporting partners and Reward Strategy as a media partner for 2019. The Payroll Centre and Reward Strategy will join the CIPP in hosting a roundtable on Monday 2 September to kick off National Payroll Week 2019 with a debate on the future of payroll, focussing on the skills required for payroll professionals of the future. Speaking on the partnerships for 2019, Ken Pullar FCIPP, CIPP CEO, commented: “It is important for the CIPP to be working with the Payroll Centre, Global Payroll Association and Reward Strategy for the CIPP’s 21st National Payroll Week to further promote the profession and raise the profile of the industry across the three brands. “In working together, we will deliver a more impactful and joined up message to those working in payroll, as well as employers and government departments who should recognise the important and strategic role that payroll plays both within business and the UK economy overall.” Taking place 2–6 September, National Payroll Week was established to raise the profile and awareness of payroll in the UK. It helps demonstrate the impact the payroll industry has in the UK through the collection of income tax and National Insurance; which contributed in the region of £250bn to the UK economy in 2017–18. To take part in National Payroll Week 2019, visit cipp.org.uk/npw and request your event pack.

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Brian Sparling ChMCIPPdip awarded Chartered membership FOLLOWING THE Chartered Member assessment panel in May 2019, the Chartered Institute is delighted to announce that Brian Sparling ChMCIPPdip is the latest individual to be awarded Chartered membership. Brian is a CIPP tutor as well as working as payroll delivery manager for Ceridian Europe Ltd based in Scotland. A full list of Chartered Members can be found on the CIPP website, here: http://bit. ly/2GQejTe . Chartered membership demonstrates the highest level of professional membership in the industry, recognising those individuals who have worked hard to raise the profile of payroll and their professional standing through education and continuing professional development. It demonstrates to employers that you are committed to keeping up to date and raising the standards of best practice within the industry. To become a Chartered Member, or find out more, visit cipp.org.uk or email membership@cipp.org.uk.

| Professional in Payroll, Pensions and Reward | July/August 2019 | Issue 52 10

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CAREER DEVELOPMENT INSIGHT

Candidate experience

Charles Hipps, chief executive officer and founder of Oleeo, discusses

W ith the race for talent intensifying, recruiters are feeling the pressure to increase velocity and win the hearts and minds of qualified candidates sooner. Digital advances mean that employers are vying for candidates from a generation that is less focused on work as a top priority, less concerned about salaries when considering a job, less likely to stay in a job for more than two years, and more focused on training and advancement than their previous generations of college graduates. These candidates are also prone to getting frustrated by how long it takes to receive an offer after their initial application and the lack of communication during their journey. Battling this is tough when recruiters are already stretched and frantically trying to plan for and attend so many on-site events, then spending hours vetting piles of CVs or tracking the movement of promising experienced talent on networks such as LinkedIn. The result is that finding ways to communicate with candidates – be they active or passive – either falls by the wayside or ends up last on the list of priorities. This is a dangerous precedent. Whether it’s time delays, poor communication with applicants, or a bad online user experience, recruiters and employers risk losing qualified candidates who left in the dark go on to consider other offers. The ever-changing landscape of recruiting means employers must recognise the need to transform approaches. In this digital era, the push from employers needs to revolve around creating an engaging experience and personalising the process for candidates – and, in order to do this, employers need to utilise technology to ensure they form a bond from a very early stage, before the candidate applies even. Crucially, this must extend all the way through to when a candidate accepts their full-time offer. Rather than the elongated manual

processes some recruiters have embedded, the race is on to expedite processes and keep candidates engaged in order to better match the high-touch process of finding, evaluating, and landing talent from an array of sources. Do this well, and a recruiter is more likely to simplify processes and increase hiring velocity. With today’s digital capabilities, it is necessary to focus on better and continuous candidate engagement and interaction. Recruitment marketing is the new norm. Providing relevant content at key moments of candidate receptivity can help to build trust, and it also demonstrates an understanding of candidates’ needs via personalisation. This can be achieved by amplifying existing marketing content with contextual placements. ...employers must recognise the need to transform approaches At every stage of the process good automation will facilitate two-way conversations so that candidates can give feedback on what they think of the process and receive feedback in return. The aim is to help them in their career regardless of whether they are hired. At Oleeo, we advise our clients to focus on these ten key steps to great engagement: ● ● Have a great employer value proposition (EVP). ● ● Devise coordinated but differentiated engagement strategies for different talent pools. ● ● Engage passives and actives. ● ● Ensure that your attraction campaign is end-to-end. ● ● Engage leadership, employees, advocates to amplify, authenticate, and

bring to life your EVP and build their team. ● ● Virtualise and automate, combine with focus with the real-world in person engagement. ● ● Understand ‘great’ and focus your engagement on great hires and candidates with the potential to be great future employees. ● ● Ensure your communication is simple, transparent and personal. ● ● Set expectations early and offer jobs as quickly as the process allows you to. ● ● Ignite and strengthen the passion of future hires and customers. Done well, you will have an engagement plan unique to your business, helping to build talent pools of people from specific backgrounds who you as the recruiter think would be a good fit. With intelligence added in, it can even extend your reach identifying candidates who perhaps you wouldn’t consider as a natural engagement to work in such ways. For diversity recruiting, as an example, an employer can utilise engagement to manage issues of under-representation of a particular group, to take steps to try and attract candidates who have a diversity background to consider working for your business. More than ever before, the time is now to ensure that you are seizing the opportunity to communicate at every touchpoint – including utilising white space on application pages. Placing messaging that hyperlinks to dedicated content and helps candidates by providing them with information and knowledge to become advocates is imperative – be this employer brand videos, images and links through to information about your organisation or people. Make it easy for candidates to see exactly what it’s like to walk through your office and work in your teams – it is the future that applicants now expect. Are you prepared? n choice but is actually a great fit. There is great value in planning

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| Professional in Payroll, Pensions and Reward | July/August 2019 | Issue 52

#CIPPAWARDS

Career development insight

The CIPP’s

PAS – case study

Cintra HR&Payroll Services Ltd

Howhas the CIPP added value? One of Cintra’s requirements is that all our bureau staff must be qualified in their role and for the last twenty-plus years CIPP have provided an excellent tuition and qualification process. Most of our staff have progressed through to degree level and above. The CIPP have raised the profile of the profession and provide first class learning and networking forums. Was the PAS the best resource available to help company objectives? It is one of the best and fits seamlessly with the other accreditations that we have, all of which enhance the reputation of capability in the ever-changing world of payroll. Where did you learn about the CIPP PAS accreditation? We have a long history of involvement with CIPP. Cintra ensure that all of our bureau staff are CIPP qualified, so the obvious choice for us as a company was to move on to PAS accreditation. It gave us the opportunity to demonstrate that we hold our organisation as a whole to the same exacting standards that we do our individual bureau staff. What would you recommend about the PAS to other organisations that may be considering engaging in the scheme? Engaging with the PAS accreditation will help a company to provide an organised framework of processes and procedures which in turn helps to ensure procedural and legislative compliance. The assessment also delivers recommendations and ways to improve those procedures to ensure continual compliance and maintenance. How important is the payroll department to your organisation? Our bureau team is a key integral part of our organisation. They are our customer facing, frontline ambassadors who ensure a first class and knowledgeable service to our clients. Payroll heroes, each and every one. n

The PAS – an accreditation available from the CIPP – provides payroll departments with assurance that: ● their payroll and associated processes are fit for purpose and comply with government legislation ● they have the right payroll activities in place, and ● they have suitable processes in place for picking up and preparing for legislative changes.

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Recognise someone who has demonstrated commitment to excellence in their profession by submitting a nomination.

How beneficial has the PAS assessment been for your organisation? The PAS assessment process and

Submit your nominations by 31 July 2019

accreditation are extremely beneficial, both internally and externally. We like to think that, with our dedicated and experienced staff, we know payroll inside out and upside down – so, for us, the assessment process reaffirms that our detailed and robust procedures are of the highest standard. Attainment and re-attainment of PAS accreditation demonstrates that we are committed to achieving and maintaining the top industry standard. The notification that we have successfully retained PAS accreditation with 100% pass rate is a fantastic achievement for our truly dedicated teams. What advice would you give to organisations considering investing in the PAS programme? Without a shadow of a doubt, go for it! There is great support and guidance from CIPP and the process itself is straightforward: if you have strong processes and procedures in place and can evidence them, it should be plain sailing. Achievement of this certification shows dedication to the payroll profession and compliance to both legislative and internal procedures. It’s a badge of honour which we certainly wear with pride – it means a lot both to us as an organisation and to our clients as it demonstrates they are in capable, safe hands.

For more information or to enrol: Visit: cipp.org.uk/awards Email: events@cipp.org.uk

Call: 0121 712 1013 Live chat with us

cipp.org.uk @CIPP_UK

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| Professional in Payroll, Pensions and Reward |

Issue 52 | July/August 2019

*correct at time of publication

CAREER DEVELOPMENT INSIGHT

Diary of a student…

than a degree. I have learned how to plan; to lead; to question; how to really manage people (downwards and upwards); how to sell ideas and make them happen. Everything learned on the MSc can be applied in the real world. My confidence has really soared, and I’ve made new friends: my study group are a great bunch of people (our weekend tutorials were a lot of fun). My dissertation was very much linked to my workplace: ‘Assessing the effect of a narrow-banded pay structure on staff engagement and motivation’ looked at the perceived value of pay increases in terms of work engagement and conversely whether the lack of a pay rise demotivates employees. Since completing the MSc I have remained with my current employer but have been given a big new role with new responsibilities. I truly feel that the MSc has given me the tools I need to face this latest challenge and will continue to do so as I go through my career. For someone who is thinking about studying for a CIPP qualification, what would your advice be to them? Like any major part of life, the studying brought highs and lows: those moments when you’re so deep in thought and an idea finally clicks in your mind; or the frustration when you just don’t get it (the accounting module in my case). And there’s the occasional sacrifice of your social life – but made worthwhile when you get that good grade in your last assignment. If you’re thinking about doing it, just do it. Don’t be afraid – the CIPP trainers and tutors will get you through as long as you put the work in and take their advice. n

Ben HancockMSc FCIPPdip London School of Economics

Can you give us an insight into your career and qualifications background? I left school with a few A-levels and went straight into work, learning payroll with Dune Shoes. After a year I moved to an investment bank, again in payroll. Two years later I moved into a supervisory role with the London School of Economics – and have been there now for sixteen years. How do you cope with work-life balance and study? Work-life balance is hard enough to achieve without studying. I had to get the buy-in of my family and set aside time for my studies which didn’t impinge on family time. Good time management and organisation are key, and these are skills you develop alongside the actual course of study itself. Why did you choose to study the MSc in Strategic Leadership? I had been considering the MSc for four years, before eventually taking the plunge. I’d been holding back due to various reasons, mainly because of the time commitment and how this would affect my work and family life. And, if I’m honest, there was a confidence issue, too: I hadn’t studied for ten years, and never dreamed of doing something at this level.

However, I wanted a real challenge, something that would push me and help me to advance my career. Finally, I realised that there would never be a ‘good time’ to embark on a two-and- a-half year degree, and so decided to just get on with it. With the course of study being so closely related to payroll, I felt I had a head start with several years’ experience in the profession. Actually, it turned out to be about so much more than payroll. It’s leadership, people management, business, strategy, reward. With module one completed of your course, how do you think you did and was it what you expected? When I received the results of my first module, it became clear to me that this was going to be a lot harder than I thought. You need to develop the skill of critical thinking and be prepared to question and argue against any theory no matter how established and accepted it might be. I also had marks dropped for referencing incorrectly. I can’t emphasise enough just how important it is to get into the habit of Harvard referencing. How important is the MSc in relation to your future career? I have come away with so much more

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