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October 2011 issue

October 2011
Playing by the rules: Payroll and compliance

Features

Supplement: Effective implementation

Amanda Smith considers how organisations can support the implementation of EAPs with effective and regular promotion of services that are available to staff.

Effective and regular promotion of Employee Assistance Programmes (EAPs) is vital if employers and employees are to derive maximum value from this important investment.   Selecting the right programme There are a number of EAP formats...

Supplement: Commissioning a programme

Neil Mountford highlights questions for prospective EAP providers, the essentials of pricing, and the importance of strong account management.
 

If you’ve made the decision to implement an Employee Assistance Programme (EAP) or are revisiting your existing offering, it’s important to source the “right” information from providers. You also need to understand exactly...

Supplement: Tax relief

The tax status and relief associated with EAPs has frequently caused confusion in the workplace. Eugene Farrell discusses the current situation.
 

Since their formal introduction to UK workplaces in the late 1970s, Employee Assistance Programmes (EAPs) have always presented organisations and official bodies with a headache when it comes to tax status and relief. The issue of tax exemption...

Supplement: Overview

David Smith provides an overview of an EAP, the type of products and services that are included and how they can benefit an organisation.
 

Since their introduction to the UK in the late 1970s, Employee Assistance Programmes (EAPs) have become an effective way for employers to improve or maintain the healthy functioning of the workplace.   Supporting health and wellbeing A...

National Payroll Week

Once again payroll teams across the country celebrated National Payroll Week in a host of imaginative ways. Dawn Lewis takes a closer look.
 

Payroll is a growing profession which is continuing to gain recognition. National Payroll Week (NPW) is just one more way that the industry can promote this vital and often complicated function. A range of payroll-related activities were held to...

AWR: Employment Rights

Christian Berenger discusses how technology can ensure compliance for AWR.

From 1 October temporary employees working 12 consecutive weeks will be given the same basic rights – including holidays, overtime allowances and pay – as permanent staff at the same company. Inevitably, this will result in...

Benefits and Recruitment: Listen and Learn

Barney Ely insists that companies must let employees’ voices be heard if they want to identify the most enticing benefits for potential new recruits.
 

Unemployment may still be widespread but as many HR and resourcing teams are only too aware, there are still sectors where employers simply cannot find enough of the right talent. For key industries with skills shortages the fabled War for Talent...

Payroll and Compliance: Playing by the Rules

Liz Hughes examines how the need for compliance affects payroll.
 

We all take things away from training courses that stay in our minds and, hopefully, improve our performance over the years. The items that tend to stick are those that resonate with our everyday experiences and if they raise a smile, so much the...

Employee Benefits: Picking Favourites

Lisa Gregory looks at why some employee benefits are preferred over others and how the industry has changed.

Given the economic downturn of recent years, it seems timely to take stock of how employee benefits have been impacted overall and the emerging prominence of certain benefits. The landscape has undoubtedly changed, but which benefits have grown in...

National Minimum Wage: Pound Stretchers

Employers are increasingly concerned about minimum wage workers’ ability to make ends meet and the negative impact it has on business. However, there are cost-effective ways to help, says Nick Martindale.

With inflation forecast to hit five per cent this year, the pressure on take-home pay for employees shows no sign of abating. Research by the Chartered Institute of Personnel and Development (CIPD) found 58 per cent of employees have not received...

Termination Payments: Parting Company

Val Hennelly explains how the changes to the Pay As You Earn tax code introduced in April apply to redundancy payments and why they are necessary.
 

Redundancy can be a stressful experience without the further complication of possible tax underpayments for higher rate or additional rate taxpayers. HM Revenue & Customs (HMRC) wants to ensure that employees facing redundancy have more...

Softworld Autumn 2011: Softworld Preview

April Whitehead provides an overview of what to expect from this month’s Softworld.

Softworld returns to ExCeL, London, on 18 and 19 October when it will celebrate its 20th year. It offers practical advice and support to those who are looking for new software or services that are designed to increase productivity and drive down...

Regulars

Top Tip: Flexible working

An employee who gives all they can within flexible working hours can be more effective than someone who works standard hours every day, as that is all that they are authorised to do. Flexible working not only benefits company performance, but can...

Legal Comment: Employers warned about ex gratia payments

Michael Ryley discusses a case which highlights the importance of carefully drafting termination letters, particularly when dealing with any payments to the employee.
 

Mrs O’Farrell was made redundant on four days’ notice instead of three months, as required by her employment contract. She was given a letter detailing her severance package, which stated that it included a statutory redundancy payment...

Tax Update: Employers must determine employee status

Lorraine Owens considers the importance of correctly identifying self-employed workers. If employers do not, they may be liable for uncollected tax and National Insurance. 

How the individual describes their employment status is not a factor of relevance, it is up to the engager/employer to determine it. HM Revenue & Customs (HMRC) will hold the employer liable for uncollected Income Tax and National Insurance...

New Products: Smart phone giving

The latest innovations in payroll and benefits

Smart phone giving Payroll Giving in Action (PGA) has launched a new smart phone donation service. Go Mobile allows access to the Giving Online initiative, which enables employers to create and promote their own payroll giving website to...

New Contracts: Reducing paper flows

Contracts won in the payroll and benefits industry

Reducing paper flows MidlandHR has supplied its iTrent solution for talent management, workforce planning, HR and payroll at Reaseheath College. As part of a five-year contract the individual modules will be phased in. Currently the HR and...

Your letters: Does a tailored benefits approach go far enough?

Have your say - your views are important

Does a tailored benefits approach go far enough? I read your article “A Tailored Approach” in the September issue with interest. The assertion made in the article, that “one size does not fit all” when it comes to...

Payroll Alliance Focus

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

Working Meetings It is not too late to book your place at the autumn Working Meetings. We have excellent speakers lined up for these events. You can book your place online at www.payrollalliance.com or by posting or faxing your booking form to...

Back to Basics: Paying HMRC

It is hard to believe that we are more than half way through the current tax year. Key to a successful tax year end is preparation and reconciliation, and these should start at the beginning of the year not the end. A monthly reconciliation of...

CV Profile: Brian Munday

Careers in focus

The delight on the faces of management when their longed for reports were now available to be produced within the hour, rather than having to wait days. They at last thought I was a genius. How did you begin your payroll career? I was...

How to ... Retain Quality Employees

Head hunters target people who appear happy and fulfilled in their jobs. It is common sense that it is not your troublemakers or underachievers who rival companies want to take off your hands. However, it is often these people who are not top of...

Moves in Brief: Rewarding role for Harrison

Rewarding role for Harrison The new Group Reward and Pensions Director at RSA has been announced as Leigh Harrison. She joined the insurer this month from her former position as Head of Executive and Corporate Reward at Sainsbury’s. Her...

Helpdesk: Statutory Maternity Pay

Do you have a burning payroll question?

Statutory Maternity Pay Q We have an employee who works as a cleaner and is currently on maternity leave. She has been employed by us on a part-time basis for three years. We are aware that she has two jobs and is in receipt of Statutory...

Employment Case Law: Unfair dismissal

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

Unfair dismissal Macquet v Naiade Resorts (UK) Ltd [2011] All ER (D) 74 (Aug) The employee was Marketing Communication Manager for Europe. In January 2009 AD was appointed as the Global Marketing Communication Manager with effect from 1 March...

News

Strike ballot over public sector pensions begins

  GMB has opened ballots for strike action over pension cuts in the public sector.   The union has decided to poll members despite ongoing negotiations. It claims that it has had to take action as the Government is proceeding with...

The CBI proposes tax breaks to encourage youth employment

The Confederation of British Industry (CBI) has called for a tax break to incentivise employers to take on a worker aged between 16 and 24 years old.   Its Young Britain Credit would be worth £1,500 and would cover a firm’s...

Pay jump for top directors

The remuneration of FTSE 100 directors has soared by around 49 per cent in the past year according to a recent report, which its author says could be difficult to justify.   Incomes Data Services (IDS) carried out the...

Calls for removal of unfair dismissal rights

Unfair dismissal rights should be removed according to a leaked Government report.   The recommendation, put forward by venture capitalist Adrian Beecroft, has been suggested in order to help companies to dismiss unproductive workers...

PAYE pooling could lead to greater penalties

The decision from HM Revenue & Customs (HMRC) to allow connected companies to pool their Pay As You Earn (PAYE) functions could mean larger targets for compliance visits and, in turn, lead to greater penalties.   According to Baker...

Tesco’s agency workers waive AWR rights

Tesco’s temporary staff have re-signed their contracts to waive their rights which are set out in the Agency Workers Regulations (AWR).   Agencies used by the supermarket have taken up the “derogation” model, whereby...

RTI could curb millions of reconciliations

Real-Time Information (RTI) could reduce the number of reconciliation payments and deductions that HM Revenue & Customs (HMRC) needs to carry out.   Around seven million people are to be affected by the latest annual settlement of tax...

Line managers to tackle absenteeism

Line managers need support in order to tackle absenteeism in the workplace, according to Legal & General.   Esther McVey MP described these workers as “the crucial front line force” at a roundtable event held by the firm...

University staff reject “derisory” pay offer

University staff are to be balloted over strike action after pay talks broke down.   Unite, one of five unions involved in the dispute, has rejected the “derisory” offer of a lump-sum payment of £150 for all staff...

Proposals to ditch maternity plans meet opposition

Proposals to scale back maternity and paternity initiatives have been met with strong opposition from the Equalities Minister.   Lynne Featherstone MP has attacked a report which is understood to suggest watering down the potential...

Employers urged to check PAYE data

Employers have been asked to ensure the quality of Pay As You Earn (PAYE) data after more than 500 returns stated that they employ “A N Other”.   HM Revenue & Customs (HMRC) has warned companies about the consequences of...

Levelling down of pensions is unlikely

Fears over the levelling-down of pension contributions have been dispelled by new research.   According to Aon Hewitt, relatively few of their clients intend to decrease their defined contribution arrangements to the statutory minimum....

Speculation over auto-enrolment date grows

Speculation is rising over the implementation date of auto-enrolment, due to concern over the state of the economy and the cost implications for organisations.   A set of proposals has been drawn up by Adrian Beecroft on ways to ease the...

Banking giant dodges £20 million tax bill

Goldman Sachs has reportedly made a deal with HM Revenue & Customs (HMRC) to escape paying the full amount of interest on a tax avoidance scheme which failed.   According to The Daily Telegraph, leaked Government documents reveal...

Employers to pick up where NHS leaves off

Nearly half of employers expect to add to their voluntary benefits offering as the result of the Government’s reforms.   The proposed changes to the NHS, which are about to enter the second reading in the House of Lords, could have...

Crackdown on foreign workers

A crackdown on immigration could mean employers are forced to reveal how many foreign staff they have working for them.   The action comes as ministers aim to achieve their pre-election pledge of significantly reducing immigration. David...

Employers increase wellbeing scheme promotion

The emphasis on health has grown by nearly 30 per cent since last year.   Employers are promoting access to their wellbeing schemes in an effort to help engage and support staff during these turbulent times, according to research from the...

NHS staff urged to give up holiday

NHS staff have been asked to sacrifice part of their annual leave or work unpaid to help plug a deficit of £4.5 million.   Whipps Cross University Hospital in east London has written to employees urging them to work for free as a...

Cost factor clarified in disability discrimination

The cost of making reasonable adjustments, in the context of disability discrimination, has been upheld as a legitimate reason not to make changes.   An Employment Appeal Tribunal (EAT) case between Cordell and her employer, the Foreign...

Pay and benefits heroes are undervalued by employers

Payroll and benefits professionals are the “unsung heroes” of UK businesses, with 48 per cent saying that they feel undervalued. The findings from a Pay & Benefits survey reveal that more than 60 per cent of those who feel...

Popular cycle schemes

Cycle to Work schemes are one of the most popular benefits, according to Co-operative Employee Benefits. The Cycle to Work Alliance has found that of the 1,233 employees who took up the initiative, 61 per cent did not ride before they got...

Retirement woes

Little over a third of employees feel that they are doing enough to prepare for their retirement. According to research from Mercer, employers need to do more to help staff to prepare for old age. Currently employees are evenly split over what...

Tate employee wins unfair dismissal case

A Tate Britain attendant has won her unfair dismissal claim after it emerged that the gallery did not properly investigate her claims of bullying by managers. An employment tribunal ruled that fair procedures were not followed when the firm...

MPs concerned over RTI implementation

MPs have warned of another Whitehall slip-up over the implementation of HM Revenue & Customs’ (HMRC) Real-Time Information (RTI) system. The Public Accounts Committee has spoken of its concerns over the implementation of Universal...

Women take brunt of cuts

Women have been disproportionately affected by the cuts in public sector jobs, leading to warnings that employers could face indirect discrimination claims. More than 110,000 jobs in the public sector have been lost during the second quarter,...

Minimum wage rises

The national minimum wage (NMW) has increased by 15p as of 1 October. Business Link and DirectGov has updated its guidance which includes advice on payments involving internships, work experience placements. Entitlement to NMW does not depend...

Charity pay lags behind

Pay in the charity sector is up to 18 per cent below that of the private sector, according to research by Croner. The biggest remuneration gap is at chief executive level. They receive an average of £73,917 which is 18 per cent less than...

Employees in China are the most likely to fake sickness

China has the highest rate of employees pulling a “sickie”, compared to only 43 per cent in the UK. The Kronos Global Absence Survey highlights that workers across the world have similar work-related issues. Of those who admitted...

No pay for interns

Companies that do not fairly pay their interns are being named and shamed on a graduate website. The Pay your Interns campaign, led online by Graduate Frog, will contact the firms listed on its site and ask them to clarify their policy on...

Pilots' holiday pay battle resolved

British Airways pilots have won a court battle over how their holiday pay is calculated. The European Court of Justice (ECJ) has ruled that the remuneration they were given during annual leave should also include a supplementary payment. This...

Half a million agency jobs under threat

Up to 500,000 agency worker contracts could be under threat as result of new rules effective from 1 October. Law firm Allen & Overy has warned that a third of medium and large businesses are planning to terminate contracts prior to...

Sickness absence cut by 15 per cent

Wellbeing initiatives have improved absent rates by 15 per cent at Legal & General. The firm undertook a pilot scheme providing employees with access to an online health and wellbeing programme. They were given support for low emotional...

Voluntary gender equality

Voluntary gender equality reporting is being encouraged by the Government. The Think, Act, Report initiative is a set of disclosure guidelines which aims to raise awareness of the need to get the right people in the right jobs. This should...

Employees miss out

Workers are missing out on £15,000 worth of tax relief, which can be collected over a lifetime’s worth of pension contributions. More than 30 per cent of UK workers do not have a pension and are consequently losing out on a...

Winter of discontent looms

Plans for prolonged industrial action over the winter months have been drawn up by unions. Details of the intentions emerged following Ed Miliband’s revelation at the Trades Union Congress’s annual conference that he thought that...

Bonus not to strike

Tube drivers are to be awarded a £1,800 bonus not to strike during the Olympic Games next summer. Unions have agreed to the payment which will ensure that industrial action will not take place. However, MPs have accused them of holding...

Cap is not a problem

The immigration cap is not harming UK businesses, according to the Government’s Chief Immigration Adviser. The number of skilled workers from outside of the European Economic Area (EEA) coming to the UK in the past 12 months was less...

Expenses cheat

Lord Hanningfield, who was found guilty of false accounting, has been released from prison having only served a quarter of his term. The former Tory peer was jailed for dishonestly claiming nearly £14,000 for overnight stays in the...

Beckhams' brother-in-law claims unfair dismissal

David and Victoria Beckham’s brother-in-law is filing an unfair dismissal claim after refusing to give his boss access to the stars. Broker Darren Flood, who is married to Victoria’s sister, alleges that Tony Herbert tried to get...

Compensation limit of £50,000

The Tribunals Bill is being passed through the Commons and will set a maximum limit of £50,000 for compensation. The Bill will cover award elements such as unfair or wrongful dismissal, and discrimination in the workplace. Currently a...

State Pension Age accelerates

The State Pension Age (SPA) is to rise sooner than expected, leading to warnings that employers need to be prepared. Ministers plan to increase the retirement age to 67 as soon as 2026 – 10 years earlier than originally proposed –...

Government is unlikely to make last-minute changes to AWR

David Cameron is unlikely to make any dramatic changes to the Agency Workers Regulations (AWR). It is reported that the Prime Minister sought last-minute legal advice over the impact of the European Directive. However, many believe that the...

Alternatives to pensions

Employers should be able to offer employees alternative financial vehicles to auto-enrolment, according to Creative Benefits. The firm has suggested that the Department for Work and Pensions’ (DWP) one-size-fits-all approach does not...

Flexible working is top

More employers are using non-monetary benefits to attract and retain staff. More than 80 per cent of HR directors have implemented an additional measure to improve the workplace environment, according to research from OfficeTeam. Flexible...

Women are earning more than men

Women in their 20s are now earning, on average, more than men of the same age.   Gender gap research has revealed females working in education earn just over £10 per hour, compared with men who receive a little less.   The...

Minimum wage impacts youth employment

The impact of the National Minimum Wage (NMW) may be having a negative influence on youth employment.   The Low Pay Commission has suggested that companies are put off from recruiting inexperienced staff due to the cost of the NMW. As a...
 

 

 

Poll

Are you concerned about staff absence during the Olympic Games?