The CIPP unveiled their latest “Future of Payroll Report” (2019) for the second year running and surprisingly, it’s not a total snoozefest! The foreword by CEO Ken Pullar is a tour de force of future forward-thinking, extolling the virtues of embracing change and moving with the times in an ever changing industry. He acknowledges that whilst payroll software and technology makes things easier, the number of enquiries does not decrease and payroll departments need to be on the ball to be in a position to answer these queries effectively.
This brings me to what I feel is the most interesting part of the report - “Key Issues Facing Your Payroll Department”. The report itself was made possible by feedback so this snazzy little section has its finger on the proverbial pulse and is super useful to anyone whose bread and butter is payroll.
Surprisingly, Brexit is nowhere to be seen which makes a nice change! Instead, coming in at Number 1 with 38.50% of queries is “GDPR and Data Protection”. It just goes to show how much of a quagmire this thing still is for people. You can find a very interesting article here that may clear a few things up. In any case, your payroll processes should be GDPR compliant and if you still don’t know how to achieve this, then simply outsource it to a payroll provider who will do the hard work for you. And if you are the payroll provider, then making sure your staff are up to scratch is half the battle.
Coming in just behind GDPR is “Automatic Enrolment” with 32.50%. Yes, the same automatic enrolment that began to be rolled out back in 2012 and is by no means a new government initiative. While auto enrolment has been a huge success, enabling hundreds of pensioners to finally be able to afford that trip to Benidorm, it seems that confusion is still rife. The report makes some interesting conjecture about why this is - Is it the sheer number of employers who are hitting their automatic re-enrolment date for the first time? Is it the ins and outs, the complexity behind understanding the scheme in layman’s terms? or is it simply that payroll software is not doing enough to help the soldiers on the frontline? With more phasing imminent perhaps employers aren't aware of their obligations? Who knows? Well, you - you should know! So it’s time to brush up because it’s clear that auto enrolment queries aren’t going anywhere.
“Holiday Pay Calculations” come in at a close third (31.75%), maybe because of the changes to payslips, the rise of the gig economy coupled with some landmark Employment Tribunal rulings, businesses are getting their ducks in a row. Next is “Expenses and Benefits” (29.50%) which is likely due to the increase in employers moving to payrolling benefits and away from the traditional method of submitting P11D forms to HMRC after year end.
Next on the list is “Automation of Business Processes” which will be music to payroll software provider’s ears. Companies are always looking for ways to streamline processes and make things more efficient. It is unsurprising that this is a huge issue for people moving into 2019 with the introduction of so many new employment and payroll changes such as phasing and changes to payslips to name but a few.
The last two topics on the list are “Gender Pay Reporting”, which is slightly up from last year (24%) and still obviously a very important issue, and finally - “Implementing a New System”, (21%) which is really just the not-as-attractive cousin of “Automation of Business Processes” which we’ve already discussed.
So there you have it! A lot of information to stick in your pipe and smoke. If you recognise yourself among these statistics, or if you’ve thought “same” whilst reading any of this, then head over to www.brightpay.co.uk and check out their award-winning payroll software. It is fully GDPR and auto-enrolment compliant, automates all of the most confusing payroll and HR processes including holiday pay, expenses and benefits and offers incredible customer support. They are at the forefront of payroll software and will take the pain out of your payroll.