Payroll record keeping
New for this year, the CIPP wanted to understand how the payroll industry retains payroll records. Digital record keeping is highly popular, since it removes the need for storage facilities required for paper records. Digital records also provide additional options to secure the data more easily than physical records, albeit this isn’t always the case if records aren’t maintained on systems appropriately. The results showed 50% of respondents stored all records digitally. Digital record keeping also helps processes run smoothly when working remotely and away from the office, which could be the reason for this majority result. 40% stored records in a mix of digital and paper, with 9% choosing to store all records in both digital and paper format. Only 2% chose to keep all records in a paper only format. The length of retention is also an important consideration in payroll, ensuring that evidence is available should an audit require backdated information. That requirement must also be balanced against the need to store the data, to ensure compliance with the general data protection regulations. 53% said they stored records for six years plus the current tax year, making that the most popular response. 34% confirmed they stored payroll records for longer. Only a small percentage of respondents stored records for less than this.
Most frequent payroll query
Holiday pay Holiday pay remains an administrative challenge for many payroll professionals. In April 2021, the reference period that should be used for variably paid employees moved from 12 weeks to a 52-week reference period (up to a maximum of 104 week for unpaid weeks). The results of this survey show that less than half of respondents calculate holiday pay in this way, with one in five using a static 52-week reference period, regardless of unpaid weeks, and some continuing with the 12-week reference period calculation. These results demonstrate widespread non-compliance, however, this result doesn’t come as a surprise, as many commentators have described the administrative burden that holiday pay places on payroll teams cannot be met in all circumstances.
The CIPP will continue to engage with members about holiday pay to promote a better understanding of the requirements, and encourage businesses to adopt the correct calculation method.
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