The influence payroll can have on company costs
15 November 2018
Just over a fifth of poll respondents’ factor in the tax and National Insurance contribution (NIC) costs of their Seasonal Reward Scheme.
In the first of our series of festive quick polls, we asked the payroll community if the tax and NIC costs are considered when deciding what is included in their Christmas reward schemes.
Of the 148 responses received, over half do not provide any kind of seasonal reward scheme (58%) but of the remaining 42% over half (22%) said that yes, the tax and NIC costs were a consideration. 15% said that the costs were not a consideration in decision making at all, and the minority of 5% recognised that the costs should have been factored in to decisions, but they actually had not.
The influence of payroll on company costs
Payroll professionals are in a unique position to really help their business. With payroll being one of the biggest parts of any business, it has a major influence over company costs. The knowledge held by payroll professionals is key to efficiency savings within an organisation, the tax and NIC costs of reward packages being a prime example.
As the CIPP’s reiterated in its Future of Payroll report, the information that payroll must have to adhere to regulations is essential to strategic business making. It can provide business intelligence and analytics regarding an organisations’ most valuable asset - its employees, and one of its highest costs - their pay.
The Future of Payroll (2017-18) report is the first research paper in a series - to be produced annually - which goes some way to predict the future of payroll; this first report anticipating developments based on the responses provided by payroll professionals, representing 2.3 million employees in the UK.
We have now completed research for the 2018-19 report and it will be interesting to see some of the emerging trends when comparing year-on-year results. We will publish the report through News Online when it becomes available later in the year.
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Please take a moment, if you haven’t already, to answer our current festive quick poll (to the right of this, and every, news item). |