COMPLIANCE
The internal payroll cut-off
Sandra Was ACIPP, payroll process junior manager – global process owner, Capgemini, highlights this all-important payroll deadline
P ayroll professionals work in high-pressure environments, where accuracy is essential. We must be able to handle multiple tasks simultaneously in a tight timeframe. Therefore, if I had to choose one single word that comes to mind when I think about payroll, it would be deadline . In payroll, we’re surrounded by due dates, timeframes and, in general, we’re a deadline-driven department. Failure to meet some of these deadlines can have serious consequences for both employers and employees. Some notable dates in the payroll calendar include the pay day and deadlines related to statutory requirements, e.g. full payment submissions to HM Revenue and Customs. Another very important date for the organisation is the internal payroll cut-off date. This is the deadline by which all payroll information must be submitted to the payroll department, to ensure employees receive their wages on time. This includes: l employee hours l salary changes l deductions l bonus payments l much, more more. My fellow payroll professionals will understand the true importance of the internal payroll cut-off date, and will be acutely aware, that unfortunately, very often, it’s not met. When other departments in the company miss payroll cut-off dates, it’s very frustrating for payroll. Of course, there might be several different reasons why this is happening, and each one of them is far from ‘it just slipped my mind’. It could, for
example, be due to inadequate resource – if a department doesn’t have enough resources to complete its tasks, this could cause a delay in meeting payroll deadlines. Additionally, if a department doesn’t have access to the necessary software or technology, this can also lead to delays. It could even be because of dependency on another department – if B doesn’t provide the information to A on time, A simply cannot pass it to payroll. But it also could result from a lack of communication. If one department is unaware of the payroll cut-off date and doesn’t understand the process, it can be difficult for them to ensure all necessary information is provided on time. The internal payroll cut-off date is extremely important — there’s no two ways about it. It helps payroll to ensure all employees are paid on time, but also contributes to the accuracy and quality of payroll results. It gives the payroll department sufficient time to review any changes, make corrections and conduct compliance checks which must be completed before payment is issued. It also has more of a strategic role, as by reducing the risk of errors or delays, it helps maintain employee morale and loyalty. What can be done when wider business areas don’t adhere to payroll’s deadlines?
enough. Employers can provide reminders prior to the cut-off date so everyone is aware that ‘the big date’ is coming, but even this is quite useless if it’s not followed.
So, the key component here is communication, followed by
understanding. In general, communication is essential for the successful functioning of any organisation. The payroll department can communicate with the wider business through policies or emails, in which it can educate employees on legislation updates, pay calculations and benefits. There could also be a separate slot for the payroll department during business meetings, so it can explain how the payroll process works and emphasise the importance of cut-off dates and timeframes, and the impacts where incorrect and late information is sent, or even no information at all! The payroll department can explain that payroll isn’t completed in an hour, just by pushing a big red button, but that it’s a complex process, advising why it’s not so easy to enter additional information after the deadline. They can also communicate with employees about any changes to the payroll schedule or deadlines. Effective communication helps to create a sense of unity within an organisation, as it allows everyone to understand each other’s roles and responsibilities. This can increase collaboration among the different departments and help to ensure all staff within the company are on the same page and working towards the same goals. And communication with payroll – the heart of any organisation – results in a win-win situation for everybody. n
Organisations should provide clear instructions to staff regarding when
they need to submit all payroll relevant information. However, setting up the date in the business payroll calendar alone isn’t
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| Professional in Payroll, Pensions and Reward |
Issue 90 | May 2023
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