Professional March 2022

in Payroll, Pensions & Reward PROFESSII NAL Issue 78 March 2022 Official publication of The Chartered Institute of Payroll Professionals

Communication is key

Payroll stakeholders Why is communication essential for great payroll processing?

Use your voice How you can make your viewpoint heard

Let’s talk about it 6 April is just around the corner, so how do you need to prepare?


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“The art of communication is the language of leadership” – James Humes

Editor’s comment

We have a particularly exciting issue of Professional in store for you, which centres on a topic that’s key across all departments within organisations but has particular importance for payroll teams – communication.

Payroll professionals will all be eagerly (or anxiously!) anticipating the new tax year. This issue contains articles that look to cover considerations for the tax year 2022/23 from different viewpoints, one from more of a payroll angle (page 12), and one exploring elements that sit more within the remit of the human resource team (page 32). Be sure to update yourselves on all the upcoming changes, to be in the best possible position when 6 April arrives.

Effective communication can mean the difference between a positive and a negative employee or client experience, and payrollers need to ensure they use this skill to its fullest, ensuring trust in the payroll department is maintained. See more on this on pages 18 and 24. The hot topic article (page 46) this month also focuses on how crucial it is for payroll teams to cultivate meaningful relationships with both internal and external stakeholders.

Lora Murphy ACIPP ( Editor

Communication is essential across all areas of a business. For payroll and pension professionals, where Chair’s message communication isn’t working, it can result in incorrect employee pay. Motivation and morale

an employee is paid is being passed to managers, who don’t see the same data payroll sees. Additionally, managers don’t always know the impact of the changes they have made on the employee’s pay, or, in some instances, they’ve manipulated the system, if following processes doesn’t give the outcome they originally expected. Give some thought to the changes you have seen in communications across your business, and specifically in payroll, to identify how effective they are and where change could potentially add value.

could subsequently be impacted. Communication is always identified as being an area where improvements can be made. This isn’t always down to poor communication; it can also relate to overcommunication. Being bombarded with information can result in key messages being missed or lost. With the development of artificial intelligence (AI) and robotics, communication to and from the payroll department is changing. Data processing is reducing as running and checking reports, and analysing data is increasing. Payroll are working differently within businesses. With AI, control of what


CEO’s message

After an extended period of homeworking, there’s considerable interest in new and innovative ways of working, including hybrid working. I suspect, amongst many employers,

● timely payments ● a single customer account ● improved standards in tax advice ● a modern tax administration framework.

HMRC acknowledges there is still much more to be done in delivering the service customers need and deserve. The CIPP will continue to work as a key stakeholder with HMRC and represent the voice of the payroll profession. It would be good to hear from you regarding any of your challenges and successes with HMRC. Share your thoughts on this and any other details of your interactions with HMRC with the policy team, at

there’ll be some form of flexible working in operation, where workers spend some of their time working remotely, and the remainder in their employer’s workspace. I recently had the pleasure of attending Her Majesty’s Revenue and Customs’ (HMRC’s) stakeholder conference in London in December 2021, along with members of the CIPP’s policy team. This was reported on in the February issue of Professional . While reviewing my notes, and the article itself, I was reminded of the HMRC strategy presentation in which the values and customer charter that HMRC is working to were outlined. Six elements of the tax administration strategy were pinpointed: ● making tax digital ● real time information

Ken Pullar FCIPP ( Chief executive officer, CIPP


| Professional in Payroll, Pensions and Reward |

Issue 78 | March 2022

in Payroll, Pensions & Reward PROFESSI NAL Contents March 2022

Also available online at




Hot topic – Payroll stakeholders By Samantha Johnson 46

Use your voice By Lora Murphy


Tax year 2022/23: An update for payroll

professionals By Mathew Akrigg




The compensability of on- call pay By Andrew Garboden

Did you know? Off-payroll working By the CIPP’s policy and research team

Communicating the national minimum wage By Tim Bridgett




The Scottish budget – workplace parking and tourist tax By Justine Riccomini

The importance of communication By Stuart Hall

Communication is key By JeromeSmail

| Professional in Payroll, Pensions and Reward | March 2022 | Issue 78 2



Editor Lora Murphy 0121 712 1018 | Advertising Daniel Cull 0121 712 1021 | Design James Bartlett and Nicole Davis Printing Warwick Printing Company Ltd

Is payroll the new land of opportunity? By Nick Day

The #BePayroll campaign By the CIPP’s policy and research team



Chief executive officer Ken Pullar FCIPP CIPP board of directors Jason Davenport MCIPP MIoD Louise Gray ChMCIPPdip

Fear of Covid-19, flexible working and forced resignation By Nicola Mullineux

What’s on the horizon in 2022? By Danny Done

Stuart Hall MCIPPdip Helen Higson ACIPP Dianne Hoodless MSc ChFCIPP FHEA Liz Lay MSc FCIPPdip FHEA ACIPD Jeremy Montgomery BA(Hons) FCIPP



Carole Pearson MCIPP Katie Sharpe MCIPPdip

Cliff Vidgeon BA(Hons) CMA ACG ChFCIPP Clare Warrington MSc FCIPPdip AFHEA

Extending automatic enrolment? Be careful what you wish for! By Henry Tapper

Delivering payroll services against an ever-changing landscape By Paul Hammond and Maria Mason

Useful contacts

Education 0121 712 1023 Events 0121 712 1013 General enquiries 0121 712 1000 Marketing and sales 0121 712 1033 Membership 0121 712 1073 Training


01 Editor’s comment, and

35 Pensions

Chair’s andCEO’smessage

Will we soon see changes to automatic enrolment?

04 CIPPupdate

36 Technology 39 Industry news 41 Wordsearch 46 Hot topic

Events, news and developments

05 My CIPP On your behalf, Advisory, Spotlight on 10 Personal development BePayroll, Use your voice 12 Compliance Read all about tax year end,

How can payroll services adapt to constant change?

What do recent surveys and research show?

0121 712 1013 @CIPP_UK

Take a breakwith our wordsearch

national minimumwage and off- payroll working

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 2022. The Chartered Institute of Payroll Professionals, Goldfinger House, 245 Cranmore Boulevard, Shirley, Solihull, West Midlands, B90 4ZL. Switchboard 0121 712 1000 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 retrieval 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.

Who are the key stakeholders payroll must liaise with? 48 Confessions of a payroll manager Read all about Penny’s latest payoll adventures

18 Feature topic 22 Payroll news

Why communication is key

Discover the latest payroll updates

24 Reward

Fromcommunication to employment law topayroll careers

Full issue including additional online content available at


| Professional in Payroll, Pensions and Reward |

Issue 78 | March 2022

CIPP update

Silver award for investment in people TOWARDS THE end of 2021, the CIPP underwent the re-accreditation for Investors in People. We are pleased to confirm we have achieved a silver accreditation. The CIPP has held Investors in People for several years to demonstrate that we value our people. During 2020, we launched our academy programme internally to ensure we continue to support, grow and develop our teams. We are delighted this has been well received by colleagues and recognised by Investors in People. 2021 is the first year we have received the silver accreditation, which shows our employees are engaged with the organisation and committed to its ongoing success. The silver accreditation shows that the ‘people practices’ we have put in place, such as the academy programme and our internal communications, are beginning to make a tangible difference to employees, and the CIPP overall.

CIPP joins forces with The Payroll Centre to deliver training in Scotland and Wales AS WE return to the delivery of face-to-face training, we are excited to be working with The Payroll Centre to offer more dates and locations for the Payroll Update course to our members in Scotland and Wales. Through working with The Payroll Centre, we can offer CIPP members the Payroll Update course for just £242 + VAT in Aberdeen, Cardiff, Edinburgh, Glasgow, Inverness, Newport and Swansea. Our online Payroll Update and locations in England,

Northern Ireland and online via virtual classrooms will still be delivered directly through the CIPP. Visit JevL30s9Fm0 to book your place on this essential course.

Annual General Meeting (AGM) THE 24th AGM of the CIPP is taking place on 30 March at the Eastside Rooms, Woodcock Street, Birmingham, B7 4BL at 11am. All voting members of the CIPP are encouraged to attend, and details can be found at: http:// has it been more important for businesses to have good payroll processes, knowledge and skills that enable them to implement new government legislation and guidance quickly. Congratulations to those organisations that have recently demonstrated just that.” The PAS is still operating, with assessments currently operating virtually. To find out how the PAS can benefit your organisation, email . One of the most important elements is ensuring business continuity plans are in place and effective, should they be required. Congratulations to all organisations that have achieved this accreditation and been able to put those plans into action, given the events of the past eighteen months. Special congratulations to our recently accredited organisation: ● Venator Materials UK Ltd Ken Pullar, CIPP chief executive officer, said: “Never Congratulations to the newly accredited PAS organisations THE CIPP’s Payroll Assurance Scheme (PAS) is designed to test payroll processes and compliance, along with people skills and development opportunities.

Newbenefits for CIPPmembers MEMBERS OF the CIPP receive a wide range of benefits, and we’re delighted to launch two more. First is the introduction of TOTUM PRO, which is available to CIPP members for just £14.99 – giving you access to discounts and offers from 350 UK retailers, available in-store, online and via the TOTUM app. Members can sign up online at: Next, following the successful launch of Croner-i HR Lite as a

membership benefit in September 2021, we are delighted to launch Croner-i Business-inform Lite. Designed to support our members who are business owners, this will provide expert industry insights to help you manage and grow your business. You can find out more online at:

‘Guess who’s back…’ ‘…BACK AGAIN’. That’s right, our BeConnected: National Forums are back and will be running in-person in Birmingham and Bristol on 8 and 15 March 2022 respectively. If you haven’t booked your place yet, make sure you do, at: And, if you can’t get to a physical venue, we still have the online forum taking place on 17 March 2022. Bookings can be made at: http://

| Professional in Payroll, Pensions and Reward | March 2022 | Issue 78 4

Policy hub

On your behalf

January and February flewby, as the policy teamwere kept busy with surveys, presentations and forums, in between producing articles and looking out for the latest payroll updates and news Policy teamupdate

Payslip statistics survey We love a good survey here at the CIPP, and the latest instalment of one of our biggest ongoing surveys was published in February. The payslip statistics survey has been running since 2008 and gives detailed insights into current payslip trends and how they compare to those observed in previous years. Make sure you get involved and respond to the survey, and look out for the associated report, which will be published later this month. Forums There was a hive of activity in the forums space in January 2022. Various members of the team attended meetings to discuss topics including: ● small pension pots ● payroll hot topics ● the construction industry scheme ● Her Majesty’s Revenue and Customs’ (HMRC’s) guidance strategy. The sessions were hosted by a variety of organisations, ranging from government departments, such as HMRC and the Department for Business, Energy and Industrial Strategy, to other professional membership organisations, such as the Association of Accounting Technicians. The team will continue to attend these meetings to act as the voice of the payroll profession, and to represent the industry. Events BeConnected The team completed its internal online

BeConnected events throughout February and are eager to get back to presenting face-to-face in March. There’s still time to book, and you can do this at: Iuja30s9VOe. We’d love to see you there. Public sector SIG An event was held for the public sector special interest group (SIG), which included presentations from several experts, including: ● Shaun Tetley FCIPP , payroll, pensions and expenditure manager at Portsmouth City Council ● Simon Parsons MSc FCIPPdip MBCS , director, UK compliance strategies at SD Worx ● Jeff Houston , head of pensions at Local Government Association ● Samantha Johnson LLB (Hons) ChMCIPPdip , policy lead at the CIPP ● Andy Nicholls FCIPP , industry liaison manager and Angela Bell , industry outreach lead at The Pensions Regulator ● Henry Tapper, chief executive officer for AgeWage. It was a highly informative and engaging day, and we look forward to hosting many similar sessions in the future, across both this group and our other SIGs. To sign up to any of the CIPP’s SIGs, please click here: http:// Global payroll question time On 24 February 2022, Sam joined a panel to discuss how important it is for

payrollers to keep on top of complex new regulations in this 100% question-led televised broadcast. Pay Dashboard Sam will also be presenting for Pay Dashboard on 10 March 2022 and providing an update for the new tax year. There will inevitably be discussion of the issue on everyone’s lips for 2022/23 – the health and social care levy. Sam will also cover the other changes to tax and pay to be introduced from 6 April 2022. Payroll pets Who doesn’t love pets? With a mass shift to working from home, which really tested the mental well-being of some, pets provided a degree of solace in a time of uncertainty. In recognition of this, we are asking you, the payroll professionals, to introduce us to your pets, for a chance of being included in a future issue of Professional magazine. To get involved, please send a picture of your furry (or scaly!) friend and tell us a little bit about them. For further details, email the editor at . n


| Professional in Payroll, Pensions and Reward |

Issue 78 | March 2022


The CIPP's Advisory Service team provides answers to popular questions

Veteran NI relief Q: Please see several questions about the veteran National Insurance (NI) relief below: 1. How should an employer determine if an employee is a veteran, and what records should be kept? 2. How would an employer know if the one year’s entitlement to the veteran’s relief had been exhausted? 3. What would be the impact on veteran NI contributions (NICs) if they had two separate concurrent employments? A: During the onboarding process, employers can request any of the following documents to show the veteran qualifies: ● a veteran’s identification card (which marks their time in HM Armed Forces) ● a letter of employment or contract with HM Armed Forces ● veteran’s P45 from leaving HM Armed Forces ● discharge papers from HM Armed Forces ● the employment contract of their previous employment (to determine the first civilian employment start date). Records showing the employee’s eligibility for the relief need to be kept for a minimum of three years after the end of the tax year to which they relate. Employers can claim relief if they employ a veteran during the qualifying period, which commences with the veteran’s first civilian employment since leaving HM Armed Forces and ends

business expenses, they would like to pay a £80 daily allowance as a per-diem. We understand this is within the tax-free allowance for pilots, but what items can be claimed, and what records must be kept? Are receipts for items purchased kept, as our understanding is that they are not required? A: Airline pilots are entitled to a flat rate expense (FRE) of £1,022 to cover business expenditure. This FRE doesn’t include the cost of travelling expenses, uniforms and noise-cancelling headsets. The items covered within the FRE are confirmed in guidance from Her Majesty’s Revenue and Customs (HMRC). If pilots wish to claim for uniforms and headsets not provided by their employer, they can, in addition to the FRE, but the expense must be supported by a receipt. Records must also be kept, as with all other business-related expenditure. For reference, see: and https://bit. ly/3oyUuqr. Self-employed NI thresholds and rates Q: Will NI thresholds and rates for class 2 and class 4 for the self-employed change in April 2022? A: There is a 1.25 percentage point increase to class 4 NICs, but not for class 2 NICs. For reference, see: https://bit. ly/3HgiaqB and

12 months later. The 12-month period doesn’t change if the employment finishes. Therefore, current, and future employers can also claim this relief if they employ a veteran within their qualifying period. Subsequent employers must determine what the first day of the veteran’s first civilian employment was, and confirm the veteran is employed within their business during the qualifying period. A veteran may have two separate employments, but the NI relief would still apply, providing the employments took place during the qualifying period i.e., the first 12 months since leaving HM Armed Forces. For reference, see: https://bit. ly/35COkPk.

What business expenses can be reclaimed for pilots, and what are the record-keeping requirements? Expenses for pilots Q: My client provides payroll services for an aviation company. The pilots travel the world. Instead of reimbursing

| Professional in Payroll, Pensions and Reward | March 2022 | Issue 78 6


Policy hub

P11D course collection

SPP and SPL entitlement for more than one baby Q: An employee is expecting two babies by two different mothers. Both are due around the same time. We have received two MATB1s and the correct forms from the employee. Is he entitled to two separate amounts of statutory paternity pay (SPP) and two periods of statutory paternity leave (SPL) if the babies are born at the same time? A: Providing the employee satisfies the eligibility criteria, he will be entitled to two separate payments of SPP and two periods of SPL. Both must be taken within 56 days of each birth. For reference, go to: AE duties in TUPE scenarios Q: A group of employees were recently moved to our company’s payroll under the transfer of undertakings (protection of employment) regulations (TUPE). Can you confirm what happens regarding automatic enrolment (AE)? In practice, new employees are postponed for three months. Does this apply for employees who transferred under TUPE regulations, or should they be assessed and automatically enrolled (if eligible) in the same month as joining us? A: Where employees transfer to another employer under the TUPE regulations 2006, you should treat them as new recruits for the purposes of AE. Any opt- out notices previously provided to the transferor must be ignored. Receiving employers must assess the employees on the date of transfer and (subject to a maximum postponement period of three-months) automatically enrol any eligible jobholders and satisfy the information requirements for non-eligible jobholders and entitled workers. There’s also a requirement to ensure the new employer meets its duties under the TUPE regulations to offer the transferring employees a certain level of pension provision after the transfer. Do AE duties always apply? Q: A new employee has provided us with a HMRC certificate for fixed protection 2016. This is provided to individuals who have already accrued pension savings above the lifetime allowance and are protected from tax charges, provided no further tax-relieved pensions are made. The

employee has requested that they are not enrolled into the workplace pension scheme. Do AE duties apply to this employee? A: The concept of AE was introduced in the Pensions Act 2008. With effect from April 2015, the Department for Work and Pensions introduced technical changes to AE legislation, listing four new exceptions that modify some of the employer duties, where a worker meets certain conditions. One of these relates to where the employer has reasonable grounds to believe the worker has enhanced or fixed protection on pension savings under HMRC rules. This allows AE to become optional, and not compulsory. It’s the employee’s responsibility to inform the employer if they have protections. The employer can subsequently decide whether to exercise the discretion not to automatically enrol or re-enrol the jobholder. They can also decide what constitutes reasonable grounds to believe the jobholder has enhanced protection or fixed protection 2012, 2014 or 2016. A copy of the HMRC certificate or print-out from an individual’s HMRC online services account are two of several ways to demonstrate reasonable grounds to exclude the individual from AE. For reference, see: Partner entitlements to statutory leave and pay Q: An employee’s partner miscarried after her 24th week of pregnancy. Is the employee entitled to both SPP and SPL, and statutory parental bereavement pay (SPBP) and parental bereavement leave (PBL), or does one supersede the other? A: SPP and SPL, and SPBP and PBL can both be taken, providing the employee meets the eligibility criteria for both types of leave. SPP and SPL would be granted first, as HMRC guidance states: “If you’re taking another type of statutory leave (for example, maternity leave or paternity leave) when the child dies or stillbirth happens, your PBL must start after the other leave has ended but does not have to be taken immediately after. This includes if the statutory leave is for another child.” It’s important to note that both types of leave must finish within 56 weeks of the date of the death or stillbirth of the child. (The SPL must be taken within 56 days of the stillbirth or due date.) For reference, please see: and n

Our P11D, expenses and benefits course collection is essential whatever stage of your payroll career. With fines reaching up to £3,000 for each incorrect P11D submitted, whether you’re new to the process or just looking for a refresher, this course will cover everything you need to know.

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| Professional in Payroll, Pensions and Reward |

Issue 78 | March 2022


Spotlight on...

Youwork closelywith the CIPP board, howdo you support them? I would like to think that I am the ‘go-to’ in the first instance for any of the board directors who need help and support with the day-to-day duties carried out for their roles on the CIPP board. In addition to arrangements for the quarterly board meetings and strategy days, I liaise with them regarding any accommodation and travel needs, as well as attending all the meetings to take formal minutes. Confidentiality is paramount in my role, and they know that ‘whatever is said in the boardroom, stays in the boardroom.’ Howhave you seen the board progress over the years? Over these 15 years, I have seen many non-executive directors join and leave the board, with each of them giving their own contribution. Some have gone on to become board chairs and vice-chairs, which has meant they have remained on the board for many years, and I have built strong working relationships with them. I feel the Institute is currently in a strong position, and I cannot wait to see what bigger and better things come our way. I am very honoured to be part of it, and look forward to what 2022 and beyond will bring. n

Karen Boffey ACIPP CIPP executive personal assistant

Tell us a little about your career and background? After leaving college, where I took a business studies course, I started a secretarial apprenticeship at the General Electric Company (as it was known then), which gave me the best start in my career. From there, I progressed to various secretarial and personal assistant (PA) roles, including at the University of Warwick and Coventry University, before joining the CIPP as executive PA in October 2006. I have always loved being organised (or bossy, as some of my family might say!), so being a PA is the perfect role for me. What are your day-to-day duties at the CIPP? When I started 15 years ago, my main duty was to support the chief executive officer, directors and the board of directors. This has evolved slightly over

the years, as I now also play a large part in the human resource function of the CIPP and provide all the administrative support in that area of the business. I love the fact I have a variety of tasks and that there are challenges from both roles, which keeps me on my toes. I never know what each day will bring. What does your rolemean to you? I love my job at the CIPP and have been privileged to see first-hand how the Institute has evolved over the years. I can honestly say that, although it may have grown and we have moved offices, it still has the same family feel it had when I first walked into Shelly House (our previous offices) on my first day in 2006. During my time working for the CIPP I have gotten engaged, married and taken maternity leave twice to have my boys, so a lot has changed in my personal life. The company has been so supportive to me throughout.

| Professional in Payroll, Pensions and Reward | March 2022 | Issue 78 8


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| Professional in Payroll, Pensions and Reward |

Issue 76 | December 2021 – January 2022


# Be Payroll

Aimie Deniz ACIPP, payroll officer at FrictionMarketing Company Limited discusses why she became, and continues to be, amember of the CIPP

Why did you choose to become a CIPP member? I was already a member of the Association of Accounting Technicians (AAT) when I attended a joint CIPP and AAT hot topic event in Birmingham in 2018. The event was extremely useful and gave me a huge insight into new areas of payroll. How has membership helped you in your career? I’ve found that the support and guidance from the CIPP has been crucial, especially as I’m a sole payroll professional. Can you describe your payroll journey to us so far? I ‘fell into’ payroll (like most people), through different accounts roles. I found payroll processing in previous roles fairly simple. That is, until I joined a manufacturing company when I quickly realised it was much more complex. What course(s) have you studied or are you currently studying? I’m currently in my final year of studying the CIPP Foundation Degree in Payroll Management.

How would you describe your experience of studying with the CIPP? As a working mum, I’ve found it easier than I anticipated. I think this is partly due to the pandemic, as workshops and tutorials have been online, but also because it’s extremely well organised and structured. Why was it/is it important to you to gain this qualification or training course? Payroll is a key function in every organisation, so by gaining the qualification, I hope it will promote the importance of the profession and of payrollers. How do you feel about working in payroll and what does it mean to you? The best part of working in payroll for me is the job satisfaction. n

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| Professional in Payroll, Pensions and Reward | March 2022 | Issue 78 10

Personal development

LoraMurphy ACIPP, editor at the CIPP encourages members to use their voice, to provide feedback and to raise the profile of the profession that never stands still

T he CIPP isn’t a fan of stereotypes. Often the payroll professional can be seen as being quiet, reserved and generally, someone who keeps themselves to themselves. But this is simply not true. Payrollers are passionate individuals, but sometimes they feel their views aren’t listened to or understood, and they can find it a challenge to have their voice heard within their organisation. This is why being a member of the CIPP is so important. Use your voice, and let your opinions be heard. It might influence the future of payroll policy, and the work you carry out day-to-day. Find out how you can get involved…


surveys on topical issues impacting the work of payroll teams. Additionally, they are used as tools for collecting data to include in consultation or call for evidence responses.

Quick polls

The CIPP runs several surveys that have been in place for a number of years:

Payslip statistics survey Arguably the CIPP’s flagship piece of

Think of a survey, but on a tiny scale, with questions that take less than a minute to respond to. Say hello to the quick poll! Quick polls are regularly posted on the CIPP’s News Online page and focus on current issues impacting the work of payrollers. They have multiple choice answers and are dealt with by the click of a button. This is a quickfire way to have your opinion heard, as we completely understand just how busy payrollers are.

research, this survey has been running on an annual basis for over a decade, since 2008. It reveals what current payslip trends are, and the associated report allows readers to compare them to those seen within their organisation. It also provides an insight into how payslips, their contents and their distribution have evolved over the years. Future of payroll survey Published on a biennial basis, this is a crucial study into what the future could hold for payroll. As an industry that is rapidly becoming more influenced by technology, and more involved in interdepartmental work, it is a key area of focus. What will the future hold for the profession that never stands still? Benchmarking survey The report compiled from the results of this survey can be used as a tool to highlight the current productivity of an organisation’s payroll team in comparison with the wider market. It provides an insight into the current salaries and benefits offered for various payroll roles, allowing companies to establish whether they are operating competitively or not. The responses to this research help to build a true representation of the payroll industry and how it works. These surveys act as invaluable tools for both the CIPP and the wider payroll profession. Keep your eyes peeled for invites to each of these surveys, and don’t miss the opportunity to have your say. The policy team may also produce


Feature in themagazine

The CIPP’s policy team regularly runs thinktanks, providing the chance for free-flowing discussion between payroll professionals. Most of the sessions will also involve representatives from key government departments, such as Her Majesty’s Revenue and Customs, the Low Pay Commission or the Department for Business, Energy and Industrial Strategy. Not only, then, do you get to communicate with other payrollers, but this is your opportunity to voice your opinions and provide feedback to external government bodies. Invites to thinktanks are issued to individuals who hold full membership and above. This is a key opportunity for payroll professionals to influence upcoming legislation and policy, and ensures the significant role payroll, pensions and rewards play within businesses is highlighted. Thinktanks may also be one of the routes the CIPP uses for collating responses to calls for evidence and consultations, through which the policy team acts as a voice for the wider payroll profession.

Yes, you could have the opportunity to appear in our very own Professional magazine. Over the coming months, look out for chances to feature within these very pages. More information about this will be available soon. In the meantime, if you have a subject you would like to discuss, or an article you would like to include, then please contact the editor, at , who can discuss this with you.

Contact us The policy team is here, primarily, to convey the

voice of payrollers and the payroll profession. Please don’t hesitate to contact us with any of your suggestions, by emailing .


| Professional in Payroll, Pensions and Reward |

Issue 78 | March 2022


Tax year 2022/23: An update for payroll professionals

MathewAkrigg ACIPP, policy and research officer at the CIPP summarises the changes for payrollers to be aware of as we approach the start of tax year 2022/23

E ach April, we need to consider a whole host of changes that occur in relation to the upcoming year’s tax policy. Initially, the autumn budget for 2021 seemed to indicate there was little for payroll professionals to be prepared for. As tax thresholds are frozen until 2026, it seemed as though we might have an easy year. Think again. With the health and social care levy being introduced, new national minimum wage (NMW) rates, new national insurance (NI) categories and more, there is plenty for us to unpack. Income tax thresholds Let’s start with what isn’t changing – tax thresholds and the personal allowance. These remain identical to 2021/22. See fig 1. The Welsh rates of income tax will remain at parity with the rest of the UK, as opposed to Scotland, which is continuing to make use of its devolved status. The Scottish rates will be as below for tax year 2022/23. See fig 2. Some other important allowances to remember when calculating income tax are shown in fig. 3. NI We aren’t quite done with tables because the NI thresholds have changed. See fig. 4. Earnings from Earnings to Tax rate £1 £37,700 20% £37,701 £150,000 40% £150,001 And over 45% Personal allowance £12,570 Fig. 1

Along with these changes, we also have a new threshold for the freeport upper secondary threshold (FUST). This is to facilitate the freeport employer NI holiday, coming into effect from 6 April 2022. This NI holiday is available to employers for qualifying employees, who are those that: 1. are spending at least 60% of their working time at an eligible freeport tax site 2. are new hires from April 2022 3. have not worked for the employer in the previous 24 months. The employment allowance remains at £4,000 per year if your employer class 1 NI liabilities are less than £100,000 in the previous tax year. The new health and social care levy has prompted considerable and lenghy discussion, as there are many complexities in introducing a new charge such as this. The 2022/23 tax year is relatively simple – where NI is taken, this amount is increased by 1.25 percentage points for both employee and employer contributions. Prepare for more tables. The new rates for 2022/23 NI contributions (NICs) and new category letters are shown in fig. 5 and fig. 6. Finally, we have the veterans’ NI category: this is another employer NI holiday, where relevant employees meet the criteria. They must be a veteran (at least one day in the regular armed forces) and be in their first year of civilian employment. Employers must keep records as proof the employee qualifies. See fig. 7. Statutory payment rates The weekly rate of statutory sick pay (SSP) will increase to £99.35 from £96.35 on 6 April 2022. The average weekly earnings (AWE) threshold for eligibility has risen with the LEL and will be £123 per week. The other statutory payment rates come into effect on 3 April 2022, which is due to the fact they are weekly payments that cannot be split into daily payments, like SSP can. This new rate will be £156.66 per week or 90% of AWE, whichever is lower. The 90% of AWE

rate still applies for the first six weeks of both statutory maternity pay and statutory adoption pay. Student loan thresholds Student loan thresholds have been slowly drip-fed to us over the past few months, leading many to suspect that changes were coming. The confirmed student loan repayment thresholds are shown in fig.8. NMW This year saw NMW rates rise in line with recommendations by the Low Pay Commission. The national living wage (NLW) saw an increase of 6.6%, or 59 pence per hour. Make sure you know these rates, as not paying them can cost you up to £20,000 per employee not paid correctly. It can also land you on the Department for Business, Energy and Industrial Strategy’s list of named and shamed employers, which could do untold reputational damage. See fig. 9 for the new NMW and NLW rates. Electric vehicles benefit in kind (BIK) Electric cars with zero CO2 emissions will have the BIK rate increased from 1% to 2% of list price from 6 April 2022. Embrace the challenge A lot has changed in the past year. There has been plenty to unpack and digest in the payroll sector. With furlough schemes now long behind us, and business as usual starting to come back, we now have the new challenges of the health and social care levy, as well as new NI categories to implement. But what the last couple of years has shown us is that payrollers are adaptable and tough, and there isn’t anything we can’t handle. Don’t forget about the CIPP’s payroll factcards, as they contain much of the information here in a handy leaflet. You can download a PDF copy of the payroll factcard at: n

Fig. 2

Earnings from Earnings to Tax rate £1 £2,162 19% £2,163 £13,118 20% £13,119 £31,092 21% £31,093 £150,000 41% £150,001 And over 46% Personal allowance £12,570

| Professional in Payroll, Pensions and Reward | March 2022 | Issue 78 12


Fig. 3

Fig. 4

Class 1

Weekly Monthly Annual



Personal allowance income limit Married couples (born before 6 April 1935)

Lower earnings limit (LEL)

£123 £533 £6,396


Primary threshold (PT)

£190 £823 £9,880

£3,640 Min £9,415 Max

Secondary threshold (ST)

£175 £758 £9,100

Freeport upper secondary threshold (FUST)

£481 £2,083 £25,000

Marriage allowance


Upper earnings limit (UEL)

£967 £4,189 £50,270

Blind person’s allowance


Upper secondary threshold (UST)

£967 £4,189 £50,270

Apprentice UST

£967 £4,189 £50,270

Veterans UST (VUST)

£967 £4,189 £50,270

Fig. 5




Category description

LEL to PT PT to UEL Above UEL LEL to ST ST to UEL Above UEL


Standard category

0% 13.25% 3.25% 0% 15.05% 15.05%

Married women and widows entitled to pay reduced NI



7.1% 3.25% 0% 15.05% 15.05%


Reached state pension age




0% 15.05% 15.05%


Apprentice under 25

0% 13.25% 3.25% 0%

0% 15.05%

Deferred NI (paying in another job)


0% 3.25% 3.25% 0% 15.05% 15.05%


Aged under 21

0% 13.25% 3.25% 0%

0% 15.05%


Deferred NI – aged under 21

0% 3.25% 3.25% 0%

0% 15.05%


Employee doesn’t pay NI







Fig. 6

Freeport employees



Category Category description LEL to PT PT to UEL Above UEL LEL to ST ST to FUST FUST to UEL Above UEL F Standard category 0% 13.25% 3.25% 0% 0% 15.05% 15.05%

Married women and widows entitled to pay reduced NI


0% 7.1% 3.25% 0%

0% 15.05% 15.05%


Reached state pension age





0% 15.05% 15.05%

Deferred NI (paying in another job)


0% 3.25% 3.25% 0%

0% 15.05% 15.05%

Fig. 7

Veteran employees




Category description

LEL to PT PT to UEL Above UEL LEL to ST ST to VUST Above UEL


Eligible veteran

0% 13.25% 3.25% 0%



Fig. 8

Fig. 9

Loan type

Annual threshold rate


From April 2022


NLW (23 years+)




Plan 1



21–22-year-old rate




Plan 2



18–20-year-old rate




Plan 4 (Scotland)



16–17-year-old rate







Apprentice rate




Accommodation offset





| Professional in Payroll, Pensions and Reward |

Issue 78 | March 2022


The compensability of on-call pay

AndrewGarboden, education, training and enablement manager at Check Technologies, Inc. discusses rules on payment of on-call pay in the United States

O n-call pay can often be confusing when it comes to compensability. Does on-call time qualify as hours worked? Are on-call payments used to determine the employee’s regular rate of pay? The answer is: it depends. On-call pay is time spent calling into work to handle customer emergencies or other responsibilities during a period when the employee isn’t regularly scheduled to work. Complexities of payment for time spent on-call The definition alone can drive payroll professionals nuts, and trying to determine if that time is compensable can be complex and may come down to several factors. For instance, it may depend on how restrictive the company is and how frequently the calls happen. If an on-call employee is merely required to carry a cell phone, respond within an hour, and avoid consuming alcohol or recreational drugs, the time is probably not compensable. Therefore, it wouldn’t be included in either hours worked or the regular rate of pay for overtime purposes. Of course, any time spent working after responding to a call would be compensable and included in both (hours worked and regular rate of pay). Check the laws and regulations of the U.S. states your employees work in and your company policies for determining inclusion as well. If, on the other hand, the employee had to stay on the employer’s premises or respond within a short period of time, was very restricted on extracurricular activities, and the calls were more frequent, then the on- call time is likely going to be compensable. On-call payments guidance In 2009, the U.S. Department of Labor’s Wage and Hour Division (WHD) offered some guidance about the compensability

of on-call time in an opinion letter: http:// Two employees of an ambulance rescue service were required to be on-call for two hours before and after their regular shift. While on call, they had to respond to emergency calls within eight minutes by driving to the squad house and picking up the ambulance. During the winter, they often had emergency calls every day — an average of one every four hours — while they had a maximum of two calls per week during other time periods. The WHD said the employees’ on-call time during the winter was compensable due to: ● the short in-person response time ● the high number of calls ● the inability to trade on-call time ● the requirement to respond to every call. The greater the restrictions are on employees in terms of response time, geography, frequency of calls, and personal activities, the more likely the on-call time is compensable worktime The WHD also said their on-call time during other parts of the year wasn’t compensable, however, due to the low frequency of calls, which gave more time for personal activities. In a second opinion letter:

qnts30sa1Tz, an employer required its on-call employees to always be contactable, abstain from alcohol or other substances, and report to work within one hour of being called. In this case, the WHD said the on-call time was not compensable because the employer’s requirements weren’t overly restrictive, and the call-backs were rare. So, is your on-call time compensable? Perhaps. Remember, the greater the restrictions are on employees in terms of response time, geography, frequency of calls, and personal activities, the more likely the on-call time is compensable worktime. n The American Payroll Association (APA)is the nation’s leader in payroll education, publications, and training. This nonprofit association conducts more than 300 payroll training conferences and seminars across the country each year and publishes a complete library of resource texts and newsletters. Representing more than 19,000 members, the APA is the industry’s highly respected and collective voice in Washington, D.C. Get more information at: The Global Payroll Management Institute (GPMI) spearheads the APA’s global initiatives to provide the world with a leading community of payroll leaders, managers, practitioners, researchers, and technology experts. Subscribers connect with each other through networking discussions, collaborative opportunities, and access to education and publications dedicated to global payroll strategies, knowledge, research, employment and training. GPMI also publishes several global payroll texts and white papers as a benefit to subscribers. Get more information at: qERI30sa1Xh.

| Professional in Payroll, Pensions and Reward | March 2022 | Issue 78 14

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