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August 2011 issue

August 2011
Where now? Real-Time Information

Features

Real-Time Information: Where now?

Linda Pullan looks at the direction being taken by the Pay As You Earn system improvements.

HM Revenue & Customs (HMRC) has been looking at ways of improving the Pay As You Earn (PAYE) system for five years prior to the publication of its discussion paper in July 2010. The proposals for this project needed to be in place by the...

Benefits and wellbeing: Alive and kicking

Dawn Lewis investigates the rise of employee health and wellbeing in the workplace and how these types of benefits can have a significant role to play in engagement.

Employee health and wellbeing has not always been at the top of the workplace agenda. However, it is becoming increasingly apparent that this element of employee benefits has a significant role to play in staff engagement. An effective...

Payroll communication: Modern Messages

Esmé Pansegrouw explains how to take advantage of technology when communicating tax and payroll information.

The internal communications landscape has evolved substantially in the past few years with the introduction of intranets, video methods and social media. Employees expect, and are often given, a range of ways to find out what is happening at a...

Executive rewards: Tied together

Strategic employee recognition programmes are linked to company values. Derek Irvine discusses how they can also help businesses foster an engaged and productive workforce and why cash is not always king.

The High Pay Commission, an independent inquiry into high pay and boardroom pay across the public and private sectors in the UK, recently released an interim report entitled More for less: what happened to pay at the top and does it matter? (2011...

Prepaid payroll cards

John Sharman outlines the function of prepaid payroll cards and how they can ensure employees are not left short-changed when it comes to pay and expenses.

The recession precipitated a change in attitude across companies in all sectors. Business leaders were forced to take a long, hard look at the way their company was run and decide what they could do to safeguard it from the inevitable downturn....

Voucher schemes: Payback Time

Loyalty payback and discount voucher schemes are a recent major development in the money-stretching toolbox, says Sean Wilkinson.

Back in 2005, a couple of Sheffield University undergraduates came up with a simple method of helping other students stretch their financial resources a little. The result was Quidco, a discount payback system that is now one of the leading...

Public and Private Sector Pay: Perform to Please

Paul Tew provides an overview of the current issues affecting pay and reward packages in the private and public sectors.

The cost of employment, both direct and indirect expenditure, is often a major factor behind any employer decision to recruit an individual to start work. As such, pay remains at the heart of the psychological contract between an employer and the...

Regulars

CV Profile - Ann-Marie Carey

Your ability to communicate effectively with a wide variety of people is paramount for this type of career and is secondary to being numerate. It is also important to have lots of self-confidence. How did you begin your payroll career? My Dad...

Moves in Brief - Directorship for Warburton

The latest industry movers.

Directorship for Warburton Wendy Warburton has been promoted to HR Director at law firm Gateley. She will now take responsibility for the firm’s 550 employees, with duties including overseeing recruitment, training and payroll....

Helpdesk - P11Ds

Payroll Alliance technical team answers payroll related questions, including COMP schemes, childcare vouchers, holiday entitlement and pension savings.

P11Ds Q We have just recently finished forms P11D for the last tax year. We have given all those still employed a copy of their P11D, and posted copies to all those who were employed by us at 5 April last year. Do we have to do anything with...

Employment Case Law: Continuity

The latest decisions from employment tribunals on the cases that matter to you.

Sex discrimination Small v Barking Havering and Redbridge NHS Trust [2011] All ER (D) 18 (Jun) The employee was a black woman of Afro-Caribbean origin, who had been employed as a nurse from 1989. In 2007, the employee took sick leave for...

Back to Basics - Student loans part one

Processing student loan deductions can be complicated, Linda Pullan explains.

Student loans form part of the Government’s package to offer financial support to students. These enable them to meet their living expenses while they are studying in higher education in the UK.   The Student Loans Company (SLC),...

Payroll Alliance Focus

An in-depth look at the latest issues affecting payroll professionals today.

Edexcel Payroll Alliance offers a variety of BTEC payroll qualifications, ranging from level 2 to level 5. We offer distance learning and classroom qualifications which are all accredited through Edexcel. This means the qualifications are...

Legal Comment: Radical changes for modern UK workplaces

Catherine Hey discusses the proposals outlined in a new Government consultation.

The Government consultation, Modern Workplaces, has proposed a new system of shared parental leave, extending flexible working, mandatory equal pay audits and changing the Working Time Regulations (WTR).   Flexible parental leave The...

Tax Update: The three golden rules of compliance

Tax year end is over. Lorraine Owens discusses how to make the most of this period.

This article is concerned with general compliance for all employers. The tax year end form filling is over and now is a good time to reflect on how you can improve your processes, protect your position and prevent errors and omissions in the...

New Products: Edenred's guiding eyes

The latest innovations in payroll and benefits.

Edenred’s guiding eyes Edenred has unveiled a series of guides to help employers understand their obligations surrounding eye care. Along with the information, a white paper has been published on “Developing a Company Eyecare...

New Contracts: Improving efficiencies

Contracts won in the payroll and benefits industry.

Improving efficiencies Access Select is to provide Rotherham College of Arts and Technology with a new HR solution. The college made the investment to help improve efficiencies so that the administration burden could be reduced, thus freeing...

Your letters: Flexible working can help increase engagement

Have your say - your views are important

Your article on flexible working in the July issue highlights the benefits to companies of ensuring that staff are able to work remotely. However, the article does not consider a fundamental benefit of flexible working – employee engagement...

Top Tips - Supervising annual leave

It is reaching that time of year when your employees want to use up their annual leave before the UK sunshine and August bank holiday disappears. The summer holiday period will be over before you know it, and everyone will want to take the same...

News

Half of workers are unaware of auto-enrolment

More than half of the UK workforce is unaware of the upcoming pension reforms.   Auto-enrolment will be gradually introduced from October 2012 and will ensure that every qualifying employee has access to an occupational pension. However,...

Employers must tackle obesity

Companies have been urged to use staff benefits to combat employee weight problems following worrying obesity predictions from scientists.   Figures published in the medical journal The Lancet show that nearly half of men and more than 40...

Executive pay likely to continue to increase

Executive pay will continue to rise in 2012 across the FTSE 350, according to 79 per cent of senior reward professionals.   The majority of increases are likely to stem from base salaries, with more than two-thirds anticipating a hike of...

RBS workers’ pay leaked in email blunder

A leaked email has revealed the pay information of some temporary workers at The Royal Bank of Scotland (RBS).   Data about contractors’ remuneration was sent by Hays, the recruitment firm, to a number of their workers at the bank....

A fifth of graduates earn less than those who left school at 18

A fifth of graduates are being paid less than those who are only qualified to A-level standard.   The figures from the Office for National Statistics also show that 15 per cent of those who have completed degrees are on a lesser wage than...

National Payroll Week 2011

National Payroll Week (NPW) is taking place between 5–9 September 2011. What are you doing to celebrate?   This year’s theme is about making payroll shine, so we would like to hear from you about your plans for the week. Will...

Cheques should not be under Payments Council’s control, says report

The future of cheques should not be under the control of the Payments Council, according to a Treasury Select Committee report.   A number of recommendations have been put forward to ensure that decisions surrounding payment methods take...

Coulson stayed on News International’s payroll after resigning

Andy Coulson received large payments from News International after he began working as Director of Communications for the Conservative party.   The former News of the World editor, who is already in the spotlight for his involvement in...

Stagecoach remuneration committee faces revolt

Stagecoach shareholders have been urged to vote against the executive pay package on offer at the group.   The Pensions & Investment Research Consultants (PIRC) has criticised the transport firm’s remuneration committee which...

Pay awards unchanged year-on-year

Pay awards remain static, with the median growth stalling at two per cent for the three months until the end of July 2011.   The figure is the same as this time a year ago, despite signs that the average remuneration increase was rising...

Increased levies will hinder investment in staff training

The CBI has criticised the Government’s plans to extend the levies that certain companies have to pay towards training.   The lobbying organisation believes that the additional cost would be a hindrance to employers investing in...

Agency Worker Regulations are further clarified

The definition of an agency employee has been amended in time for the implementation of the Agency Workers Regulations (AWR) on 1 October 2011.   The Government has corrected the errors made in earlier drafts of the AWR. These had caused...

Huge increase in pension deficit

Pension deficits have increased by £21 billion in August for the FTSE 350, according to Towers Watson.   On average defined benefit schemes have seen obligations rise at a rate of £2 billion a day. At the end of July deficit...

Share schemes grow in popularity, despite the downturn

More than 1.4 million employees have invested in Save As You Earn (SAYE) share schemes – a five per cent increase year-on-year.   The popularity of the employee benefit has seen 44 per cent of eligible staff participate, in spite of...

Talent shortage impacts pay

The engineering and manufacturing sectors are experiencing the biggest demand on pay and skills.   Following a 50 per cent year-on-year surge in job vacancies, the industry is coming under intense pressure on remuneration levels as the...

Riots should not stop employees from being paid

Employees remain entitled to pay if they cannot get to work due to the riots, unless there are specific contractual clauses that state otherwise.   The recent troubles across England have affected a number of retail and inner-city...

Cost of childcare forces mums out of work

The cost of childcare is forcing some mothers to leave the workplace, according to figures from the Institute for Public Policy Research (IPPR).   Despite unemployment levels falling, the number of women out of work has risen. The IPPR...

Calls for flexible working for everyone

All employees should have the right to request flexible working as it has real business advantages, insists the Chartered Institute of Personnel & Development (CIPD).   In its response to the Modern Workplaces consultation, the...

Pay packets take a hit

The majority of employees have not had a pay rise since January 2011 as salaries fall below the cost of living.   The Chartered Institute of Personnel and Development (CIPD) found that nearly 60 per cent of employees have experienced a...

No action taken to improve benefits take-up

A staggering 83 per cent of companies with low benefits take-up have not tried to solve the problem, new research has found.   The most common workplace offerings included pensions (71 per cent) and childcare vouchers (38 per cent). The...

Wages for new positions inch upwards

Pay levels for new jobs have begun to increase, according to the Reed Salary Index.   Wages have risen by one point to give an overall Index reading of 99. Industries such as accountancy, hospitality and catering, and sales have seen the...

Employers must be creative to stop staff skiving

Employers need to think creatively to get people back to work, following results that show one in three employees admit to skiving. The main reason behind workers taking unscheduled leave is because they are disillusioned with their jobs,...

BBC's expenses bill

The former Chairman of the BBC Trust has run up an expenses bill of more than £11,500 over the course of six months. Sir Michael Lyons’ expenses bill consists of £5,274.29 on accommodation, £3,846 for rail fares and...

Wages down by £647

UK workers have lost £647 in take-home wages in the past year as salaries have failed to keep up with inflation. The Office for National Statistics revealed that the average salary increase over the past year was 2.3 per cent. This is...

Reports of £3.5 million for Brooks

Rebekah Brooks is reported to receive a severance package worth £3.5 million. The former Chief Executive of News International, who resigned over phone hacking allegations, is expected to benefit from a large payout along with other...

Higher earners are disengaged with pensions

Pension schemes are losing favour with higher earners following the changes to tax relief in April. The annual allowance for tax-free pensions saving is now £50,000, down from £255,000. This dramatic decrease has seen the...

Irish payroll winners

In July’s issue Pay & Benefits ran a competition offering readers the chance to win one of five copies of The IPASS Book from the Irish Payroll Association. The book is updated annually and provides the latest information on Pay As...

Cheque plans ditched

The Payments Council has decided to keep cheques for as long as necessary, following widespread criticism from MPs, businesses, charities and individuals. Last month Pay & Benefits reported that the decision to abolish cheques would not be...

Paternity leave is unaffordable

Only one in 10 fathers plan to take more time off than the two weeks’ statutory allowance, due to the loss in earnings. New fathers are not taking advantage of Additional Statutory Paternity Pay (ASPP)and leave arrangements, which came...

Public sector under fire

More than a third of employment claims are attributed to the public sector, despite it employing only 22 per cent of the UK workforce. Research by commercial lawyers, EMW, highlighted that the number of cases in the public sector is now 24 per...

Opt-out rates to be monitored

The Pensions Regulator (TPR) has been charged with monitoring the opt-out rates for automatic enrolment. As part of a committee debate over the Pensions Bill, MPs questioned whether some employers may encourage workers not to participate or...

Age cases increase

The number of age discrimination cases has risen in the past year, according to the annual tribunal statistics. Over the past three years the number of lodged claims has more than doubled from 3,800 in 2008/9 to 6,800 in 2010/11. This means...

Muted pay rises help employment

Moderate pay rises are continuing to have an impact on the lower than expected level of unemployment. The Chartered Institute of Personnel and Development (CIPD) has revised its forecast on employment rates, and has attributed subdued pay...

Companies ignore health benefits

Some companies are failing to invest in employee wellbeing, despite the level of stress-related absences increasing in the past 12 months. According to new research, 65 per cent of businesses think long hours and heavy workloads are the...

Long-term absence impacts staff

The impact of extended staff absences on other employees has been assessed by Aviva UK Health. The findings reveal that long-term sickness can create low morale for those left in the workplace. A fifth of workers feel annoyed and overworked...

Merger of Income Tax and NICs progresses

The integration of Income Tax and National Insurance contributions (NICs) has moved forward after the Government issued a call for evidence. The merging of the two tax entities was first proposed during George Osborne’s 2011 Budget. The...

High levels of remuneration at Bank of England

A total of 82 Bank of England staff are paid more than £100,000 and many receive large pension contributions. The Bank’s annual report, which disclosed pay levels at the institution, showed that these high-earning employees consist...

British Airways too weak to match RPI increases

British Airways (BA) has told pension savers that it is unable to top up its plan as its financial position is too weak. At a meeting for scheme members, attendees were told that BA was not the strongest of companies to be relied on....

Number of older workers grows

The number of workers who are older than the normal retirement age has dramatically increased in the past 20 years. According to a Trades Union Congress (TUC) analysis the proportion of over 64-year-olds in work rose to nine per cent by...

Vouchers in bloom

A £50 National Garden Gift Voucher (NGGV) has been launched to mark the 50th anniversary of the scheme. The offering, introduced by the Horticultural Trades Association, was unveiled at the RHS Hampton Court Flower Show in the form of a...

Legal help rejected

The Supreme Court has overturned a ruling which gave employees the right to legal representation during internal disciplinary hearings. Pay & Benefits featured the case of R (on the application of G) v The Governors of X School in May 2011...

Small business stifled

A third of sole traders have highlighted the forthcoming pension requirements as the largest barrier to taking on members of staff. The British Chambers of Commerce (BCC) has called upon the Government to make sole traders exempt from...

Staff training may be a substitute for pay rises at Whitehall

Whitehall may be spending money on training instead of pay rises, according to the Chartered Institute of Personnel and Development (CIPD). The total bill for civil servants’ courses was approximately £275 million – around...

Code of Conduct

The Code of Conduct for executive remuneration is to be reviewed. The Remuneration Consultants Group (RCG) is asking for feedback and comments on the functionality of the Code and its fundamental principles. Dr Martin Read, Independent...

Expenses on the straight and narrow

MPs have avoided any further scandal over the submission of their expenses. The National Audit Office (NAO) has reported that the new expenses regime is working effectively and MPs are being cautious over any claims. The Independent...

BBC executives see their pay fall by 43 per cent

The executive board at the BBC has seen its total pay fall by 43 per cent as the Corporation seeks to reduce its wage bill. As part of the BBC’s annual report, Director General Mark Thompson and his executive team saw their pay slashed...

Company cars favoured over cash

The number of firms offering cash payments instead of a company car has fallen by more than 10 per cent in the past year. The change in popularity of this alternative is largely down to the shift in attitudes about cars from both employees and...
 

 

 

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