COMPLIANCE
In praise of payrollers
Payrollers are wizards. They can turn their attention to just about anything. In recognition of this, Christine Robinson, employment taxes consultant, PSTAX , reviews all the tasks those in the industry carry out and how far the profession has come
T he expertise of payroll professionals is relied upon by just about everyone in the country, including: ● employees ● employers ● politicians ● civil servants ● children ● adults ● pensioners. However, their work goes largely unnoticed. Perhaps they make it look too easy, or maybe they’re just too busy to big themselves up. I’ve spent years working alongside, and more recently, in, payroll, and I’d like to share what goes on behind the scenes because payroll isn’t only about paying staff – it’s way more fun than that. The beauty of payroll software Collecting tax via pay as you earn (PAYE) began in 1944 but that was all it did. Since then, more tasks and functions have jumped onboard, as various groups
have recognised the huge potential a sophisticated bit of payroll software can have. In 2023, payroll software doesn’t just pay employees and collect tax and National Insurance contributions (NICs), it also: ● collects fines and student loans from employees ● collects taxes and NICs from off payroll workers ● helps workers save for their retirement by administering automatic enrolment (AE) ● records and administers statutory absences – sickness and parental leave ● calculates and processes holiday pay ● helps employers recruit and retain staff “Payroll isn’t only about paying staff – it’s way more fun than that”
by administering salary sacrifice schemes ● administers a state aid system for employers via the employment allowance ● collects the apprenticeship levy on behalf of employers ● collects tax from payrolled benefits in kind. To paraphrase a well-known high street retailer, (cue sultry voice), “this is not just software, this is payroll software…” Payroll is vital to our economy Payroll is a cornerstone of our economy. It allows businesses to pay staff, taxes, pensions and levies and to generate data allowing them to analyse those costs. Those taxes go to funding public services, and just as importantly, employees receive both their pay and payslips to allow them to make their own spending plans. We live in a world which is becoming more interconnected, and payroll is a perfect example of that. The introduction of real time information
| Professional in Payroll, Pensions and Reward | September 2023 | Issue 93 28
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