in Payroll, Pensions & Reward PROFESSI NAL Issue 65 November 2020 Official publication of The Chartered Institute of Payroll Professionals
Will RPA help you be more strategic? Beingmore productive
The strategic value of payroll data Realising potential
Future of payroll roundtable Moving forward
CIPP UPDATE | POLICY HUB | PERSONAL DEVELOPMENT
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“However beautiful the strategy, you should occasionally look at the results.” Sir Winston Churchill (1874–1965) (https://bit.ly/33RLDGg)
Annually I prepare a features list for the ten issues of the magazine for the next calendar year. When in 2019 I prepared the 2020 list, it was absent foreknowledge of a pandemic and the
On pages 15–17, you’ll find comments, views and predictions of participants in the National Payroll Week future of payroll online roundtable. It was a privilege to attend and hear how these industry luminaries see the profession, industry and technology developing, in light of the pandemic. I hope their comments and views resonate with you, too.
impact it would have on life and work, particularly the payroll profession; yet, I listed ‘strategic payroll’ as the feature topic for this November issue; an almost prescient coincidence. There are several articles on strategic payroll throughout this issue, providing direction and opinions of a diverse group.
Mike Nicholas MCIPP (firstname.lastname@example.org) Editor
I hope this finds each of you safe and well and adjusting to the new ways of working. Whether you are running in-house or an outsourced model, and whether you are a local, national, international or global business, you
valuable when considering future strategies that the business may have. For anybody wanting to influence key decision makers when it comes to investment choices, then knowing your data is essential to support securing investment for future objectives. Just as a business should have a business plan, so too should the payroll service provision that supports it. Growth markets, mergers and acquisitions activity, reductions in some areas of business are all visible to payroll. If anything has got the attention of payroll at the boardroom, it is the impact of Covid-19 on industry, so do not be shy about the quantity and quality of information at your fingertips to support key management information. I hope you find the articles contained in this edition of interest and of benefit to you, and please do drop me a line if you want to discuss anything contained in more detail.
can benefit from having a payroll strategy. The very process of sitting down and considering the people, process and technology that is in place and how it operates today and what you expect of it in the future will help to shape your thinking. Whether you wish to change anything – and, let’s face it, the one constant is change – then knowing what you have within the payroll arena, the cost of service, the value of the service and the future of the service are all valuable to you as a manager. The skills and competencies of your team, their development requirements and horizon scanning for the skills needed in the future, are key items for review to staying ahead and relevant. Being the custodian of one of the largest costs of a business (employment costs) then also knowing the headlines and details of the payroll, pension and total reward package costs are very
Jason Davenport MCIPP MIoD (email@example.com) Chair, CIPP
As we approach the end of a calendar year, we can certainly say that nothing has been normal about this year. I continue to express the best wishes of the CIPP staff and myself, that you, your family and colleagues have continued to keep safe and well during this pandemic. This time last year I was writing about how good it was to see so many of you at our flagship Annual Conference and Excellence Awards Ceremony at Celtic Manor in Newport, in the beautiful Welsh countryside. Sadly, this year that was not to be, but I did see many of you online who followed and attended our virtual Annual Conference and Excellence Awards Ceremony. I hope the world achieves a degree of normality sometime soon and that we will once again be able to celebrate our profession, in person, at Celtic Manor in 2021. Excellence was once again rewarded at our awards ceremony and the CIPP congratulate all the worthy winners and celebrate their success! And I must mention the special award of recognition, that I was pleased to award to Angela MacDonald, HMRC deputy chief executive officer and second permanent secretary, (who was also
our keynote speaker). The award is made on behalf of the whole of HMRC for their innovative thinking, planning, speed of action, design, implementation and issue of the coronavirus job retention scheme, closely followed by the job support scheme. A supplement from the Annual Conference and Excellence Awards is provided with this month’s magazine. Finally, November is usually a further time for celebration when we hold our Graduation Ceremony in Birmingham, for those who have successfully completed our university approved qualifications. This ceremony has been postponed and we look forward to celebrating the classes of 2020 and 2021 in November next year. However, we are pleased to recognise the success of our students and will be releasing a short, celebratory video to mark their achievement through social media and News Online. Continue to keep safe and well.
Ken Pullar FCIPP (firstname.lastname@example.org) Chief executive officer, CIPP
| Professional in Payroll, Pensions and Reward |
Issue 65 | November 2020
in Payroll, Pensions & Reward PROFESSI NAL
Also available online at payrollpensionsandreward.org.uk
THIS ISSUE’S FEATURE TOPIC IS STRATEGIC PAYROLL
22 Strategic payroll by Jerome Smail
NICs holiday for businesses employing veterans by Lora Murphy
Covid-19 and workplace changes by John Harling
The NPW future of payroll roundtable
Insolvency and the impact on employees by CIPP policy and research
Consolidation is the current buzzword by Henry Tapper
CJRS and JSS: effects on pensions by Ian Neale
| Professional in Payroll, Pensions and Reward | November 2020 | Issue 65 2
Chief executive officer Ken Pullar FCIPP CIPP board of directors Jason Davenport MCIPP MIoD Stuart Hall MCIPPdip Dianne Hoodless MSc ChFCIPP FHEA Editor Mike Nicholas 0121 712 1000 | email@example.com Advertising Vickie Graham 07775 564 352 | firstname.lastname@example.org Design James Bartlett, Nicole Davis and Sam Parkes email@example.com Printing Warwick Printing Company Ltd
Employers’ duties haven’t changed by The Pensions Regulator
Time-saving tips by John Hale
Relationship break down, reputational damage, worker status by Nicola Mulineux
Statutory parental bereavement leave and pay by CIPP policy and research
Liz Lay MSc FCIPPdip Carole Pearson MCIPP Katie Sharpe ACIPPdip
Will RPA help you be more strategic? by Glyn King
Cliff Vidgeon BA (Hons) FCIPP CMA ACIS Clare Warrington MSc FCIPPdip AFHEA
The Kickstart scheme by Danny Done
Education firstname.lastname@example.org 0121 712 1023 Events email@example.com 0121 712 1013 General enquiries firstname.lastname@example.org 0121 712 1000 Marketing and sales email@example.com 0121 712 1033 Membership firstname.lastname@example.org 0121 712 1073 Training email@example.com 0121 712 1063
The strategic value of payroll data by Abigail Vaughan
Innovations in payroll have come of age by David McCormack
01 Editor’s comment, and
28 Payroll news 29 Reward 38 Industry news
Events, news and developments
06 My CIPP
Policy hub: On your behalf, Advisory, Being payroll
40 Technology 43 Wordsearch 52 Confessions of a payroll manager Additional online content 44 Do you know what you want to achieve?
11 Movers and shakers 12 Personal development
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 2020. 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.
When we were young, Diary of a student
14 COVID-19News 18 Compliance
45 Payroll needs to evolve - now 46 Unprecedented times lead to unprecedented measures 47 Boosting finance efficiency
Full issue including additional online content available at payrollpensionsandreward.org.uk
| Professional in Payroll, Pensions and Reward |
Issue 65 | November 2020
CIPP celebrates 40 years of supporting payroll professionals TO RECOGNISE and celebrate 40 years, the Chartered Institute has contacted founder members of both the Association of Payroll and Superannuation Administrators and the British Payroll Managers Association, to ask what they think the Institute’s biggest achievements have been. Industry luminary Gordon Cresswell FCIPP has provided the following comments. “I was a founder member of APSA and helped design the
of our having achieved top marks for quality control of the qualification. “Getting civil servants to come out and speak to payroll professionals was a real feather in our cap. HM Revenue & Customs
In other news, but still looking to the future, we are working to launch our Software Directory 2021 in the new year, and are currently working hard to demonstrate the functional differences between software solutions, for those looking to update or change providers in these ever-changing times. Our policy team are working tirelessly to ensure that we are all kept abreast of future changes, as the coronavirus job retention scheme ceases, and the job support scheme replaces it. We are here to support you through these times and the challenges they bring. We extend congratulations to this years graduates who have successfully passed their Foundation Degree but unfortunately, due to current circumstances, cannot celebrate with us at a graduation ceremony this year. We look forward to celebrating with you in November 2021. Until such time, when we can get together in person, be proud of what you have achieved and the difficulties we have overcome together. So, continue to be professional, to be knowledgeable, to be supportive – but most of all, to be payroll. Why was it important to you to launch the magazine? – “Initially we had a newsletter which, although homespun, was the first ever proper payroll communication – and our members loved it. “The way the magazine is today is a tribute to all involved. It’s professional and friendly, and can hold its own against any other professional magazine. The tone is perfect. It criticises authority where appropriate but does not seek to be obstructive to HMRC or the Department for Work and Pensions. It is objective and, importantly, independent.” (HMRC) staff had never been allowed out to meetings and conferences, but we changed all that through mutual trust. Being asked to sit on HMRC committees and to chair some was a real feather in our cap. “I was very active in leading the drive to achieve Chartered status, and obtaining this was one of my proudest moments.” What do you think has been the biggest change for the profession over the last forty years? – “The increasing complication of legislation has enhanced the standing of the profession as usually any monitoring, reporting and calculation has to be accomplished by the payroll suite of programs. Not only has this pushed payroll into the role of keeping organisations compliant, it has enhanced payroll’s role in their strategic management. What would you like to see the CIPP achieve in the future? – “I would like to see HMRC insist on a practising certificate for payroll professionals – a licence to work in payroll.”
CIPP round-up WITH OUR event season drawing to a close for 2020, Joanne Hudson, CIPP marketing manager, provides a round-up of news and developments. The Chartered Institute extends thanks all who interacted with us during our online events. We hope you enjoyed the events as much as we did, and that you gained useful information, networked with colleagues (old and new), and celebrated the profession with us at our Annual Excellence Awards. Congratulations to all those nominated, shortlisted, and, of course, all who received awards in this year’s Annual Excellence Awards. Your achievement acts as the gold standard for others in the industry and helps us raise the profile of this vital profession. The supplement with this issue provides details. As we move into the winter months, we are not only reflecting on what the profession has achieved during this unusual year, but we are looking to the future. With the future in mind, we held an online extraordinary general meeting on Friday 9 October; see the separate report on the opposite page. first-ever payroll qualification. Together with Trevor Lakin and Peter Blackhurst I started the British Payroll Managers Association, which is now the CIPP. “We provided the first proper payroll qualification – the Diploma in Payroll Management – and the response was phenomenal. People of all ages took the opportunity to prove their worth, and we set up probably the education-world’s best network of tutors. Overnight, we became BTEC’s largest provider of a single subject distance learning course. “This was followed shortly by the Certificate in Payroll providing people with a qualification of competence in gross to net calculations.” What was your motivation for being involved with the Institute? – “In common with many payrollers I was fed up doing work only for the HR and accountancy departments to take the credit. In those days there was no payroll voice and no qualifications. We aimed to remedy both, and I believe that is what we achieved.” What are your proudest moments working for the Institute? – “Not necessarily the proudest, but a most poignant moment was when the London Evening Standard printed an advertisement for a payroll position which included the words ‘BPMA qualified person preferred’. “Our first Graduation Ceremony in London was a real milestone and highlight, at which the BTEC representative spoke
| Professional in Payroll, Pensions and Reward | November 2020 | Issue 65 4
Extraordinary general meeting report THIS MEETING, held online on 9 October via Microsoft Teams, followed a consultation and notification sent out to members about CIPP board proposals to amend the Institute’s Charter, bye-laws and regulations. Some of the proposed amendments just tidy up some drafting issues, some are straightforward updates, others are changes which will help us better manage the Institute, and some introduce more modern and or best practice. These include reducing the term of office of our directors from four to three years and limiting to three terms the period of tenure for each elected director. One of the more significant changes was the proposed change to bye-law 16, which seeks to resolve difficulties with the timing of our annual general meeting in the
Ken Pullar, CIPP chief executive officer, said: “Never 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 Payroll Assurance Scheme is still operating, with assessments currently operating virtually. To find out how the Payroll Assurance Scheme can benefit your organisation, email firstname.lastname@example.org. There were two resolutions that members were asked to consider: one for the approval of the revised Charter and the second asking for approval of the revised bye-laws. The online voting process was concluded at the Extraordinary General Meeting, and the results independently verified as follows: ● Special resolution one (Charter): 153 For (97.5%), 4 votes Against (2.5%) ● Special resolution two (bye-laws): 153 For (97.5%), 4 votes Against (2.5%). The arrangements to amend the governing documents will now be finalised. context of managing our end of year accounting processes in time.
Congratulations to the newly accredited PAS organisations THE CIPP’s Payroll Assurance Scheme (PAS) is designed to test your payroll processes in relation to payroll processing, compliance and the people skills and development opportunities.
One of the most important elements is ensuring business continuity plans are in place and effective should they be required. Given recent events, congratulations to all organisations that have achieved this accreditation and will have been able to put those plans into action. Special congratulations to our recently accredited organisations: ● Fourth ● Liverpool City Council ● PayPlus
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| Professional in Payroll, Pensions and Reward |
Issue 65 | November 2020
On your behalf
Policy team update
The CIPP’s policy and research teamprovide an update on developments
T he CIPP’s policy and research us to put forward the views of the payroll profession in relation to potential new government policy. It also gives the opportunity to discuss what is working well and, conversely, what is not working as effectively in the payroll sphere. Activity in the consultation space has continued, despite the outbreak of coronavirus, with meetings being held on a virtual basis. team are involved in a variety of consultation forums, which allows TPR Professional Body Working Group The Pensions Regulator (TPR) hosted a meeting in September to provide stakeholders with a corporate update, in addition to information relating to their auto-enrolment (AE) and ScamSmart campaigns. Attendees, all joining from different professional bodies, were then invited to detail what activity they and their respective organisations had been undertaking throughout the duration of the pandemic. Key focus was placed on the change to the deadline for reporting outstanding payments, as due to Covid-19 a temporary easement was applied to this, and the deadline increased to 150 days, as opposed to the ordinarily observed 90. TPR explained that, from 1 January 2021, it will be asking businesses to revert back to the previous process of reporting payment failures within 90 days. From 1 April 2021, this will become mandatory. Concern was voiced within the group due to the threat of a looming ‘second wave’
of coronavirus, and questions asked about what will happen beyond next year. As always, TPR wanted to emphasise the prevalence of pension scams, particularly given the current turbulent circumstances in which people are finding themselves, where it may feel like the most immediate solution is the correct one. There was a reminder that decisions around pensions should not be rushed, and a qualified advisor should be contacted where possible. TPR, together with the Financial Conduct Authority, promotes the ScamSmart campaign, which provides advice around pension scams, in terms of how to identify and subsequently avoid them, to protect savings for retirement. The resounding message was that TPR would like stakeholders to ensure that they continue communicating with members and signposting them to the wealth of information that is available on the topic of pension scams. All attendees confirmed that the last few months have been unprecedentedly extremely busy, with the majority confirming that their business offered a coronavirus hub on their website, and that members have been updated of any relevant information via news stories online. Several individuals explained that they were responding to the Treasury’s recently published call for evidence which seeks evidence to support, or otherwise, the possible solutions put forward by HM Treasury and HM Revenue & Customs (HMRC) to resolve the social unfairness issue arising for certain low earners who
are members of a net pay arrangement (NPA) pension scheme that results in them not receiving the benefit of tax relief on their pension contributions.
Collection of Student Loans Consultation Group
At the recent meeting of this group it was pleasing to hear that the feedback gained from members regarding the starter checklist had been taken on board. The group were advised that the positioning on the checklist of the ‘please note’ text would be moved in line with the feedback received. Thank you to those who submitted feedback on the checklist – the team were extremely grateful for all of the comments. Employers are reminded that the intent to introduce a new student loan plan for Scottish learners will go ahead as planned in April 2021. New plan 4 will result in an increase to the Scottish loan threshold to £25,000 before repayment deductions of 9% are taken. It is estimated that this will affect around 5,000 employees; and we await further confirmation of how this information will be sent out to employers. HMRC advised that after reconciliation some employers have overpaid student loans and, in response, the department has been writing to those concerned requesting banking details so that refunds can be made. During this period especially, we have seen multiple scams in which fraudsters pose as HMRC in attempts to defraud the public. We were asked to inform employees that these letters are genuine and can be actioned, but if in any doubt they can log onto their student loan account to confirm the overpayment. A reminder that the student loan thresholds for the tax year 2021/22 have been confirmed.
...businesses to revert back to the previous process of reporting payment failures within 90 days.
| Professional in Payroll, Pensions and Reward | November 2020 | Issue 65 6
...a risk that some small pots will be eroded to nil or be so small as to be almost worthless...
with pension saving. After the hard work and commitment delivered by the wider payroll profession to make this policy a success, let us now work together to help make every penny saved by the employees we serve count towards life in retirement. The CIPP policy and research team are working alongside other stakeholders on this project and have been gathering evidence from the payroll sector through surveys and discussion. Questions posed include: ● How practical are the proposed solutions? ● Are there other options that could be explored? ● What are the main barriers to implementing solutions? ● How might these be overcome? The needs of the consumer will be at the heart of all work delivered by the Small Pots Working Group and the views of the whole payroll profession, including software developers, payroll bureaux, bookkeepers, accountants and employers are essential to ensure the right solution is taken forward. n Please contact samantha.mann@cipp. org.uk if you have any thoughts, views or experience that you wish to share.
DWP Small Pots Working Group The risk of small deferred-pension pots amassing was a concern raised at the very earliest stage of development for workplace pension policy. It is estimated that without action by 2035 there will be 27,000,000 deferred pots. The Department for Work and Pensions (DWP), together with the Pensions Policy Institute (PPI) and Now: Pensions, are leading on a Small Pots Working Group that will provide an initial assessment, recommendations and an indicative roadmap of actions for industry, delivery partners and government. The government continues to work with stakeholders to ensure the delivery of pensions dashboards that will enable consumers to see what pension pots they have, online and in one place. The Small Pots Working Group will complement this work and seeks to identify the priority option or combination of options to help tackle the growth of deferred, small pension pots. A small deferred-member pot arises
when an employee and their employer stop contributing to the pension scheme. This may occur when an employee leaves their employment or can happen when the employee has missed the opt-out window. If the employee fails to monitor their deferred scheme, there is a risk that some small pots will be eroded to nil or be so small as to be almost worthless at the point of retirement. Many solutions to this problem have been discussed over recent years. During summer 2020, the PPI published a report to detail the possible policy options that could be delivered to tackle the growing number of deferred members with small pots. The proposals considered within the PPI report include: ● pot follows member ● lifetime provider ● same provider consolidation ● default consolidator ● member exchange. Automatic enrolment pensions policy has been successfully delivered by 1,700,000 employers resulting in 10,000,000 employees now engaged
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| Professional in Payroll, Pensions and Reward |
Issue 65 | November 2020
The CIPP's Advisory Service team provides answers to popular questions
Q: If an employee has more than one child placed with them through adoption and under separate/different arrangements, will this affect their entitlement to statutory adoption pay (SAP) and leave? A: The payments for SAP depend on whether the adoption of more than one child is in relation to the same arrangement or different arrangements. If the adoptions are part of the same arrangement and matching certificate, then there would only be one entitlement to SAP. If they are part of separate arrangements with separate matching certificates, then they will need to be treated separately for SAP purposes and the adopter could potentially be entitled to two payments of SAP. The entitlement to leave and pay are treated differently in these instances. Provided the employee meets the criteria for leave, then they would be eligible for another entitlement of 52 weeks. The leave would not run simultaneously, the first entitlement would cease as the second entitlement begins. For the purposes of paying the employee, unlike the entitlement to leave, the first adoption’s entitlement to SAP would not stop due to the entitlement to SAP under the second. In fact, the employee would continue receiving SAP under the first entitlement, if they were eligible, and begin payments under the second when their leave begins. It would be important to assess whether the employee would be eligible for the second adoption payment and this would be performed against the normal criteria on the Gov.uk website. Q: We have an employee who is pregnant. Her due date was 1 July 2020, and she agreed her maternity start date as 10 July 2020. On 20 July 2020, she wrote to us to explain that she had given birth on 19 July and would therefore like to start her
maternity on 20 July. Is this allowed? A: An employee wishing to change the start date of her maternity leave, must give the employer 28 days’ notice, or agree a new date. The start date of 10 July 2020 appears to have been agreed between the employer and employee and would therefore be allowed. But the latest change to 20 July would not be allowed as the employee had already started her maternity leave on 10 July. The employer should always be notified of the date the employee expects her statutory maternity pay (SMP) to begin. Notice must be given at least 28 days before the SMP is due to start. Statutory maternity leave (SML) should start on one of the following: ● eleven weeks before the week the baby is due ● the first day after the birth if the baby is born early ● automatically if an employee is absent with a pregnancy related illness in the four weeks prior to the expected date ● on a chosen date between eleven weeks prior to the expected week of birth and the date of birth. Q: How do you pay and process statutory sick pay (SSP) for an employee where the qualifying days (QDs) are not clear, for example, zero hours workers? A: If there is a rota available for days that the employee should have worked then this would need to be used to establish the QDs. If there is no rota available, then there must be at least one QD each week. If the employer and employee cannot agree the QDs, regulations provide for the QDs to be: ● the days on which the employer and
● a Wednesday, if there is/was no specified day of work, or ● every day of the week except those on which they agree that none of the workforce were required to work. This is prescribed under section 154 of the Social Security Contributions and Benefits Act 1992 or section 150 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992. Q: An employee who is pregnant has handed in her notice after her qualifying week (QW) and is also going to work for another employer before giving birth. How does this affect the SMP we have to pay? A: If the employee starts work for another employer after the QW, but before the birth, then any employer liable to pay SMP to her does not have to pay SMP for any weeks she works for that other employer after the baby is born. One of the criteria for ceasing SMP as listed in the SMP1 form is that the employee has started working for another employer that did not employ her at the QW. Before the birth, the employee can work for the new employer and still receive SMP from the employer liable to pay SMP. When the employee leaves the ‘old’ employer SMP becomes payable on the earlier of the following: ● the Sunday of the eleventh week before the baby is due ● the day after the baby is born. However, if after the birth the employee goes back to work for a new employer with whom she was not employed at the QW, she must tell her old employer as SMP will cease. The old employer would issue form SMP1 with the exclusion reason that the employee started work for a new employer that did not employed her at the QW.
employee agree that the employee is/was required to work under the contract, or
Q: Are there any age limits for paying SSP?
| Professional in Payroll, Pensions and Reward | November 2020 | Issue 65 8
PAYROLL ASSURANCE SCHEME DON’TWAIT UNTIL IT’S TOO LATE Can you afford penalties of up to £10,000* per day for non- compliance? Make sure your people and processes are working, and get ahead of any nonconformities before they become a problem.
A: There is no age limit for SSP payments. Employees are entitled to SSP provided they satisfy the eligibility criteria, which are: ● classed as an employee and have done some work for their employer ● earn on average at least £120 per week ● have been ill, self-isolating or ‘shielding’ for at least four days in a row. ● Please see the guidance found here: https://bit.ly/3cT0V05. Q: Is there a limit on how many linking periods an employee can have before they are no longer eligible for SSP? A: Employees are not eligible for SSP if they have a continuous series of linked periods that last more than three years. If the employee does not have linked periods lasting more than three years, then provided they satisfy the eligibility criteria for SSP and do not fall under the exceptions then they will be entitled to the payments. Q: If an employee wishes to take statutory paternity pay (SPP) and leave, what notice are they required to give? A: The notice required for SPP depends on whether the paternity is related to birth or adoption. In cases of birth, the required notice is by no later than the Saturday of the qualifying week (fifteen weeks prior to the week the baby is due). For adoption, the required notice is 28 days from the date the child will be placed. It is prudent that the notice is made in writing and informs the employer of the expected date of birth or the date that the child is expected to be placed. The notice should also indicate when the employee wants to start being paid SPP and whether they will be taking one or two weeks of leave. In circumstances where the employee is late giving notice to the employer, then it is for the employer to decide if it was reasonably practicable for the employee to have given them notice on time. Please see section SPM140600 of HM Revenue & Customs’ (HMRC’s) Statutory Pay Manual for more information: https://bit.ly/3jrJc2C. Q: An employee who was due to be on paternity leave, has instead commenced sick leave. Must we still pay SPP? A: If an employee is eligible to be paid
SSP in any week during the paternity pay period (PPP) then they cannot be paid SPP for that week. However, they can be paid SPP for a week in which there were only waiting days for SSP, prior to payment. This is encompassed at section SPM140700 of HMRC’s Statutory Pay Manual , see: https://bit.ly/33o2T5z. If an employee is off sick during the time they requested as statutory paternity leave (SPL) then they can request to take this later after their sickness ends. However, this must still be within the time limit of 56 days after the birth of the baby (see Regulation 18(a) of the Statutory Paternity Pay and Statutory Adoption Pay (General) Regulations 2002). Q: We have an employee on statutory shared parental pay (SShPP), but they are being made redundant during their period of statutory shared parental leave (SShPL). How do we treat this? A: One of the eligibility criteria for SShPP is that the employee must have been continuously employed 26 weeks prior to the qualifying week (fifteen weeks before the week the baby is due). This is referred to as the continuity of employment test. The employee must also still be employed the week prior to when the SShPP is due. Provided that the employee satisfies these criteria then if they are made redundant during their SShPL and they are in receipt of SShPP then they would continue to be paid for the remainder of that period of leave. It is important to note that starting a new job would cease their entitlement to SShPP. Please see regulation 30 of the Statutory Shared Parental Pay (General) Regulations 2014. n Clarification to the article ‘Annual leave and term-time workers’ The authors of the article, which was published in the October issue, have supplied the following clarifying comments. “The divisor of 44.4 used in the calculations for the purpose of the out-of- court settlement of the case involving the Royal Borough of Greenwich was agreed by the parties. The calculation (and divisor) should not be construed as an appropriate calculation methodology for general purposes.”
For more information Visit: cipp.org.uk/PAS Email firstname.lastname@example.org Call: 0121 712 1000 Live chat with us
| Professional in Payroll, Pensions and Reward |
Issue 65 | November 2020
*correct at time of publication
Deborah Auton ChMCIPPdip, UK payroll manager, DS Smith Business Services, discusses the benefits of being part of the CIPP Being payroll
What attracted you to CIPP membership? When I started in payroll, I needed to find out lots of information, and CIPP seemed to be the main place to get all that knowledge. It was a professional organisation that had everything I needed to do my job, all in one place. Which benefits of the CIPP membership package have helped you the most? Keeping up to date on all the changes is essential, so the magazine, the News Online email newsletter and the Advisory Service have probably helped me the most. Also, being able to go on discounted courses, knowing its content is from a really trustworthy source, is great. How has CIPP membership helped you in your career? So, when I started my career in payroll, I had no knowledge at all and CIPP helped me learn the basics. I did the National Payroll Certificates to understand the basics of payroll processing. As I progressed, I have been on more courses and have done the Foundation Degree in Payroll Management, which has enabled me to progress to senior and management positions in payroll. Tell us about a time when you really felt the benefits of having CIPP membership There have been lots of time when I have used the benefits from membership. When you get questioned about something at work, for example on whether a particular expense should be taxed or not, you know that the Advisory Service will be there to help you and give you the right answer. You have that behind you as a professional answer. Tell us about the day you realised CIPP membership was really of value to you It was when I realised that payroll was a lot more than just processing time or sending out the payslip. When I realised the amount of legislation and compliance that we need to comply with and all the work you have to do to make sure your organisation is safe. Knowing that my membership was there as a source of knowledge and support if I needed help was invaluable to do the job that I do. For someone who is thinking of joining the CIPP, what would your advice be to them? I would definitely recommend that anybody working in payroll joins the Institute. Whether you are a new entry to the industry
or a seasoned professional, the CIPP is there to support you and to educate you. The monthly magazine is filled with information to support you whatever level you are in the organisation and you know that you are going to get good reliable sources of knowledge. There is so much legislation and it can be quite complicated navigating the HMRC website, especially when you start off, and CIPP will put that into a format that is understandable and you know you can take that away and apply it to a practical information. Why is being a CIPP member important to you? I have always wanted to be a member since I started in payroll and I think it’s really important to have a trusted professional organisation which represents our industry. Payroll is far more complicated than people think it is, and those working in the industry have the really important job of getting people paid. So, for me, it is really important that I have membership of an organisation that recognises the experience and the qualification and gives me what I need to be the best I can.
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BE ACCURATE. BE COMPLIANT. BE CONSISTENT. BE PASSIONATE. BE PAYROLL
| Professional in Payroll, Pensions and Reward | November 2020 | Issue 65 10
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HAYS PAYROLL PROFESSIONALOF THE YEAR AS PART of a nationwide competition, payroll administrator, Hannah Jones, has been awarded payroll professional of the year by the recruiting experts, Hays, and has received £100 in retail vouchers. Hannah, who has worked at Leeds University Union for the past five years, managing payrolls for salaried, weekly and job agency staff, has been awarded as national winner alongside several regional winners across the UK. The competition ran as part of National Payroll Week (NPW). Over the course of NPW, payrollers across the country nominated their payroll professional of the year who was someone they felt had gone above and beyond in their role. The competition received over 100 entries. Speaking of her achievement, Hannah said: “It’s awesome to be recognised for all the work I do in the background, especially during such a difficult time. I really appreciate it. Thank you very much!” Helen Whiteley, Hannah’s direct line manager, who nominated her for the award, said: “I am delighted that Hannah has won ‘Payroll Professional of the Year’. She has been brilliant this year and fully deserves the recognition.” Hannah’s entry was judged by Helen Livesey, director of Hays Payroll, who commented: “The calibre of the nominations this year was outstanding. Unlike National Payroll Week in previous years, we saw many examples of work around furlough, reminding us of the crucial nature of the work carried out by payroll professionals. It was wonderful to read such kind words in each nomination and it really brought home just what a fantastic profession the payroll world is. Choosing the winner was a very difficult decision which was much debated between myself and fellow judges, but Hannah’s work stood out to us and we are over the moon to present her with this award.” SO LONG, FAREWELL – AND THANK YOU TO TWO VENERABLE CIPP TUTORS TWO ENTHUSIASTIC supporters of the CIPP have recently retired from their role as a tutor. The CIPP extends thanks for their noble support and wishes both the very best in the future. Karen Thomson MSc ChFCIPPdip FHEA It is with regret that after seventeen years of service with the CIPP, we say goodbye to Karen Thomson. Karen has had a long and successful career with the CIPP, culminating in leading the CIPP’s policy and research department. Karen tutored concurrently on the CIPP’s Foundation Degree in Payroll Management and the Master of Science in Business and Reward Management. In 2013 she received the ten-year service award at the CIPP’s annual tutor training event, and in 2017 she was awarded the CIPP’s Payroll Professional of the Year accolade. She has consistently displayed laudable professionalism, coupled with the determination to promote the payroll profession wherever possible. A testament to these attributes is that she was one of the first payroll professionals to successfully apply for the prestigious Chartered membership status with the Institute. Jane McDonald MCIPPdip We also say goodbye to Jane McDonald, another long-standing and esteemed tutor and full member of the Institute. Jane tutored on the Foundation Degree in Payroll Management for fifteen years, joining the CIPP’s tutoring staff in October 2005. She provided dedicated support to students at all levels of the Foundation degree and its preceding Diploma in Payroll Management programme, and received the ten-year service award at the CIPP’s annual tutor training event in 2015. ZELLIS APPOINTS RUTH DOOLEY RUTH DOOLEY MCIPPdip has been appointed as product manager for Zellis, as part of the product management team focused around payroll legislation and compliance. The role is to work as a team to drive the functional design and direction of ResourceLink to ensure that it provides customers with a great experience and functionality. Ruth says: “This is a completely new role for me, so I am learning more and more as time progresses. The payroll product team at Zellis are amazing and inspirational. They know their stuff. I am so glad to have joined such a strong team and to be a part of such great software company.”
Edward Bryan Ghent 11 February 1926 - 14 September 2020
THE CHARTERED Institute was saddened to hear of the passing of an old friend and supporter, Edward Ghent. In the early days, Ted was always there, smiling and quietly supporting the British Payroll Managers Association, continuing this through to the CIPP. As payroll manager for Geest plc, in Spalding, Ted was always on top of payroll issues – and we put this to good use through his appointment as one of our first Diploma tutors. Whether it be national meetings, regional meetings, conferences or graduation ceremonies, Ted was there, side by side with his lifelong companion Pam Garret, also a member from the start. Our condolences to Pam in her loss. We will miss Ted’s quiet, tenacious and dependable support, for which he was rightly awarded an honorary CIPP Fellowship. Ted passed away peacefully at Ashwood Nursing Home Spalding.
| Professional in Payroll, Pensions and Reward |
Issue 65 | November 2020
When we were young – A taxman’s life
David Toye FCIPP , outlines his Inland Revenue career and connections with the CIPP
I had left school at the age of eighteen, working the summer months at Worcester fruit market. When the growers and dealers knew I was from Worcester Royal Grammar School they christened me ‘the student prince’. I actually got the sack from that job because the porters complained I was picking up their tips. I moved on from that adventure into public service, but before writing about that let me briefly explain why I, a retired public servant, come to be writing here. Many of you reading this won’t have heard of me, so I should explain that I was asked by Inland Revenue (now HM Revenue & Customs) to represent the department to payroll and other bodies, from 1987, which I was pleased to do until my retirement in 1995. I was in touch with the editor over the death of dear Norman Green and he suggested I write an article. My first district charge with the Revenue was a huge Schedule E tax district in Yorkshire, and it was a rather anxious young fully trained inspector who moved his family to Shipley in the autumn of 1973. I needn’t have worried as the staff were wonderful. That seemed to set me up for head office (PAYE procedures) and the world of payroll for seven years or so. I first met Peter Blackhurst of the British Payroll Managers Association in 1988, and it was he who did so much to settle me into the conference role. So many people helped me in their different ways. I particularly recall Gordon Cresswell,
Chris Williams and Trevor Lakin, and not forgetting Fiona Chamberlain who worked quietly in the background taking notes of meetings, minutes etc, which all boosted the professional aspirations of your organisation, now a Chartered Institute. We believe that together we improved the working relationship between payroll and my former department, and, for my own part, I much appreciated being awarded CIPP Fellowship. Having heard me talk of PAYE over the years, I hope it might interest you to read of other aspects of my life in taxation. I’ll describe some days when my job required me to step outside the ivory tower, which I was always keen to do! Some of this was in courts, from the High Court up to the House of Lords. Sometimes I had to give evidence as a PAYE expert witness which taught me always to use simple accurate language, and to avoid language that I didn’t want questioned by the defending barrister etc. I loved court work, saw all the robes, wigs and ermine as pure theatre – always to be respected and admired but never feared! One particular day required me to report with the Board’s solicitor to the House of Lords which was then the UK’s ultimate judicial court. A tax appeal was being heard by their lordships, chaired by Lord Mackay of Drumadoon who was a cheery, sprightly soul, mind as sharp as a razor. We were introduced to the barrister pleading for the Revenue, who said: “Listen boys, if I’m in trouble I have
a habit of rocking on my feet. If I do that, just start scribbling on whatever the question is about!” It was not too long before the interrogation got underway and Barangwanath started rocking alarmingly while the two of us scribbled furiously. I always remember Lord Mackay’s twinkle as he commented “I gather you are in difficulty with my questions Mr B, though two gentlemen behind you seem eager to join the fray? Ten-minute adjournment?” The next tale might amuse you. An accountant had made his client’s appeal to the Inland Revenue Special Commissioners, knowing the added difficulty this would make for me. I decided to have the appeal formally heard and would seek a finding of wilful default. I knew what I was doing in the sense that I had read Tolley’s comments on the disinclination of the Special Commissioners to make such a finding. I told myself three times in the mirror that it would be fine; the mirror smiled back, and off I went. Things did not go fine! The Special Commissioners misordered the proceedings, clearly did not welcome my tactful attempt to sort it out, and we were doomed within ten minutes. That was a difficult day which I just put down to experience. Furthermore, being right is one thing, but passing that ‘good news’ on is quite another. It only remains for me to thank you for your friendship and support and to wish you well both collectively and in your individual lives. Christina and I now live a happy retired life in Malvern, spending our time walking, still some cycling and in my own case, singing with Malvern Male Voice Choir. n
...together we improved the working relationship between payroll and my former department...
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