To many people, payroll is something only thought about once a month, on their one payday. But for those of us in the industry, we see day in, day out how our payroll department affects the livelihoods of our employees and businesses, and why getting it right is absolutely essential!
This is why National Payroll Week was established – to raise the profile and awareness of payroll in the UK, and to celebrate the quiet cogs that keep things moving.
Here we explore the highs, the lows, the myths and the secrets of payroll!
1. Payroll – isn’t that just pushing buttons?
We wish. But the world of payroll is extremely complex. The depth of knowledge required in addition to frequent changes in tax legislation mean that those involved in payroll are kept on their toes. From PAYE allowances, CIS deductions, pensions, Gender Pay Gap reporting, statutory payments, P45’s, P60’s, National Minimum Wage and the Apprenticeship Levy, the expertise required is second to none.
2. For a business, payroll can be its largest expenditure
Processing payroll can be a complicated, time-consuming task and can take years to gain the knowledge to ensure thorough compliance. Employer liabilities and responsibilities have only increased this year, with the introduction of the Job Retention Scheme on top of statutory payments such as holiday pay, SSP, SMP and SPP. Therefore, companies who outsource their payroll can make savings on what it would cost them in house, as a compliant company will take care of all invoicing, administration and processing payments. We relieve businesses of the burden of payroll, allowing them to continue focusing on their own expertise.
3. There are a multitude of different compliant solutions than can benefit workers
From employing workers on multiple assignments to allowing employees to claim expenses, there are a number of facets that a payroll department are responsible for. For example, employees on our Clipper Total scheme (who are found to be outside of SDC) are able to submit both variable mileage and fixed (accommodation, subsistence etc) expenses and is important that this is administered compliantly.
4. Ignore the non-compliant solutions at your own peril though…
We know we sound like a broken record, but we will not stop saying it. Loan charge scheme fallouts, hybrid models evading National Minimum Wage or employment contracts, tax penalties issued…the list goes on. You MUST ensure your supply chain is compliant – an FCSA accreditation is a good place to start. The latest spotlight on tax avoidance was published only days ago;
...so please be mindful of which providers you use, and ask to see their due diligence and processes.
5. You are only likely to hear about it when things go wrong, and not when it runs smoothly
On the occasions that things go wrong – we will hold up our hands and rectify as soon as possible. But mostly, payroll can be a thankless task, with all of the behind the scenes work largely going unnoticed, but being so essential to our workers. So, a huge thank you for our own payroll department –Lil, Sam and Molly, for all that you do. Though perhaps not as exciting as other ‘National’ weeks, it’s great to be able to acknowledge the importance of what they do and the positive impact is has.