COMPLIANCE
P11D, EXPENSES AND BENEFITS TRAINING COURSE COLLECTION
problem created over many years, in which colleagues were actively discouraged from talking about pay or finances. This now needs unpicking to break the stigma and make talking openly around financial well- being an accepted norm, so that solutions can be found. Saving at source is key Like most good practices in society, the best results come when the activity is habitual. Creating good saving habits is no different and the option to save at source from payroll is the best way to ensure the activity takes place where it’s more mandated than voluntary. Being able to support employees with the facilitation to save into an appropriate saving vehicle is a function that’s best delivered through payroll. Employer incentivisation As with many habits, encouragement or incentivisation can help reward the desired actions. Looking at how employers can incentivise, not only pension saving habits, but wider saving habits through employer contributions or recognition practices could be a crucial part of driving participation. Pensions are only part of the solution Saving needs have changed, and on day one of employment, contributing to a long- term saving plan of a pension is important but there are many more goals that require saving habits prior to then. Simply having a savings cushion to fall back on, midterm savings into an individual savings account (ISA), such as a cash ISA or taking advantage of a lifetime ISA, all form part of a more resilient financial position for an employer and employee to progress together. Education is key What continues to be an underpinning factor is that financial education is key in supporting financial well-being. The impact on mental health increases where there’s a sense of, not only being unable to identify a solution, but also when the problem itself isn’t understood. It’s crucial to implement robust financial education, which helps employees understand: l the complexities of tax and statutory deductions l benefits which help deliver day to day savings, such as lifestyle benefit platforms l health benefits, such as a cash plan,
along with the operation of savings vehicles, such as a workplace ISA or pension.
A differentiation factor in the future For graduates entering workplaces, reviewing the employer stance and support around financial well-being will be as significant as looking at their support around mental health now. This is a generation that will enter workplaces with student debt, often without the parental financial security of prior generations, and with immediate challenges presented by the cost of housing, often restricting social mobility. So, what’s the solution to the savings challenge, which will address financial well-being in workplaces? What was clear from all the thought leaders at the savings summit is that there was a call to action for the pay and reward profession to be a major part of the solution. The colleagues trusted with financial matters by employees understand the financial complexities and can: l disseminate knowledge l support the functionality of operating saving initiatives through the payroll l influence leadership and invoke workplace cultural challenge. This really does seem like the opportunity for the profession to step up and be seen as impacting on workplace culture and other people strategy agendas of attraction, retention and well-being. At the University of Lincoln, a pilot initiative with workplace ISA provider Cushon has proven that younger workers will save into a savings vehicle providing they see the vehicle as appropriate. This is further encouraged by employer incentivisation through contributions. The result of this has been that a pool of 1,200 student workers with previous pensions take up of less than 5% now have a take up rate in the workplace ISA of 92%. This has prompted the production of a white paper to influence government change to widen automatic enrolment legislation beyond just pension savings and to review tax relief on wider savings. So, despite years of offering to support, there now really is a burning platform within workplace well-being, with all signs pointing at the payroll profession to deliver a solution to financial well-being. Let’s do what payroll do best and fix the problem. n
Duration Varies dependant chosen options
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.
Find out more and choose the P11D courses that are right for you at cipp.org.uk/training
Prices starting at £199 + VAT dependant on course options chosen
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| Professional in Payroll, Pensions and Reward |
Issue 87 | February 2023
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