Payroll is critical, yet its operations are often overlooked and neglected. Jessica Webbley-O'Gorman outlines four common obstacles faced by the payroll function and how to overcome them Payroll is essential for both organisations and employees. Despite this, payroll is often neglected and overlooked until a crisis occurs. Instead of treating payroll as though it's the poor cousin of strategic internal business functions, organisations should instead critically evaluate the payroll function to reap an abundance of benefits. Here are four common stumbling blocks most organisations trip over when it comes to payroll—and how best to navigate them. 1. Payroll is often neglected until there is a crisis Anecdotally, it takes eight months for an employee to regain confidence in their payroll after just one error. The time payroll teams require to verify, adjust and readjust an employee's pay is vast—without adding value to the organisation or individual. Paying attention to payroll when it's business as usual is essential in avoiding errors, rather than hyper-focusing on the area when there's a problem. 2. Unclear roles and responsibilities Payroll generates changes and improvements from within the organisation and will be able to implement them. But, it is just one part of the organisation: identifying what happens upstream and what flows into payroll is important. Organisations should critically examine the overall organisation in which payroll operates. Remove silos surrounding your payroll team and ask yourself: what are the wider organisation's processes, operations and goals that payroll could support or that impact on payroll's ability to deliver its core tasks? 3. Lack of intentional inclusion of stakeholders Payroll is experienced in different ways by different people. Whether it's a new employee, an employee on sick leave, a line manager struggling to understand a new expenses policy, a finance director who needs to close this quarter's reports, a payroll administrator or an outsourced payroll provider—all have different priorities, experiences, and levels of authority affecting the outcome they want. You need to consider as many different experiences as possible regarding payroll. These multifaceted perspectives can help plan for – and navigate – potential obstacles that could otherwise snowball. Unless such diversity of these moments and needs is considered and planned for, payroll will not be appropriately resourced or prepared to respond, and the experiences of key stakeholders will not be positive. 4. One size does not fit all Payroll must be an overall process and yet accommodate each individual employee. Employee numbers, benefits packages, legacy systems, HR reporting capabilities, organisation culture, and individual circumstances will all impact the complexity of payroll. There is no magical 'payroll button' that can accommodate everyone across the organisation, meaning that the payroll function must be nuanced, robust and flexible. In practical terms, this could mean including payroll in planning new HR systems or processes; linking in with HR on employee experience programmes and priorities; and taking resource or system concerns raised by your team seriously. How to elevate your payroll function for good The following actions can help elevate the payroll function so it is seen as a vital part of any organisation. Being an active and visible part of the broader organisation is critical for payroll Communicating what is going into payroll and what is not is critical. It is not good business, nor a good experience, for an organisation to fail to consider how payroll operates as part of the organisation's employment tax, employment law and revenue compliance profile. The solution is to map out your payroll processes, identify your stakeholders, and communicate those findings. Payroll process mapping opens the opportunity to identify, discuss and alter how things are happening or who is responsible for them Clarity around roles and responsibilities isn't just for the benefit of payroll. Providing a clear structure around the roles and responsibilities regarding payroll is a proactive risk management strategy within the organisation that will also outline how payroll adds value to the organisation and the payroll function itself. There is a tension between the universality of payroll (everyone needs to get paid) and bespoke requirements (everyone needs to get paid their pay) The most urgent or essential challenges facing an organisation or payroll team will vary from organisation to organisation. Pick an easy win or the biggest pain point and promote payroll's positive capability. Jessica Webbley-O'Gorman is Tax Director at PwC

Challenging your bias is uncomfortable and takes effort, but it needs to be done to foster a truly inclusive workplace culture. Andrea Dermody explains how. Our brains are trained to make snap decisions that are not necessarily based on either facts or judgment. The key here, however, is what happens next. Do you act on your initial judgement, or do you take a step back, acknowledge the facts, and change your behaviour accordingly? This is a central issue around different types of bias. When we make a judgement and don't change our approach, no matter the evidence to the contrary, we're heading down a dangerous road towards unconscious bias. And, when we first become aware of unconscious bias, trying to do anything about it will feel uncomfortable.  Why uncomfortable matters When we learn a new skill, such as riding a bike, we're delighted to be uncomfortable. But in the professional arena, and especially for those in senior roles who are used to being regarded as well-informed, recognising that there are areas where we are ignorant is an uncomfortable place. However, to work towards eradicating biases, it is essential to be aware of these knowledge gaps and understand how important it is to start learning. By listening to what people with different experiences have to say, you will build this skill into a habit and eventually find yourself less uncomfortable and more informed. Be BRAVE to counteract bias One way to eradicate biases is to deploy the 'BRAVE' technique. Each letter of BRAVE stands for two actionable steps an organisation can take. Build relationships outside your in-group Hearing the story of someone else's different lived experiences can help promote empathy. Be consciously inclusive Ensure you build inclusion into every touchpoint and interaction you have with people by asking yourself what is missing: do we have differences represented? Do we hear different perspectives and voices? Recognise bias in yourself and others Look for people who will challenge you—and do the same for them. Request feedback from a broad group You have to leave your echo chamber to see the full picture of a situation. Consider 360 feedback requests from people outside your comfort zone, such as peers and direct reports. Advance all talent Don't just choose to mentor and sponsor people who have the same experiences as you. It is much more valuable to mentor and sponsor people who might have a different experience from your own to broaden your view and theirs. Accountability to drive progress Consider how you will hold yourself accountable for any changes you make to your way of thinking and question how your organisation holds people responsible for change. Without accountability, cultural or behavioural change is impossible. Being vocal the moment you see inequity If you don't challenge where you see inequity, you're telling everybody else in the group that you're okay with what's been said. Speak up. Add another viewpoint to your decision making Are you only making decisions based on input from a tiny group of people? Receive input from a variety of different types of people. Empower everyone to contribute and act Help people understand that inclusive culture is about how we treat each other, from the CEO down. Effort by everyone, every day Feeling and doing something that makes you uncomfortable, or doing something that feels initially counterintuitive, can feel like it's going against your gut. But, we must make ourselves uncomfortable to drive inclusivity within our organisations. Andrea Dermody is the Founder of Dermody Inclusive Organisations

Energy costs are rising, and people are looking for help from their employers. What supports can UK employers offer, and what are the tax implications? Caroline Harwood explains Very few people in the UK will not be impacted by the rocketing price of energy costs. So, understandably, employers may be faced with calls for help and will want to support their employees where they can. What can employers do, and what are the associated tax and national insurance implications? Additional pay or bonuses As with any other cash payments arising from employment, Pay As You Earn/National Insurance Contribution (PAYE/NIC) will be due. There are no reliefs or easements available despite the purpose of the payment. Reimbursing the employee for an energy bill Employers must be aware that reimbursing an employee for a specific energy bill will be treated as earnings for tax and NIC purposes at the time of payment. This means that the sum reimbursed will need to be subject to PAYE, and both the employee and employer will pay NIC at that time.  However, if the employee works from home, the potential to treat some of the energy costs as a business expense and be exempt from tax/NIC exists. Paying the energy provider It may be possible for an employer to arrange to pay the energy provider directly on behalf of the employee. This would be treated as a benefit-in-kind (BIK), and the tax treatment is the same as reimbursement. An energy provider may also be able to issue a bill in the name of the employer, but the underlying supply contract will remain between the employee (i.e. the energy customer) and the energy provider. This form of payment will also be treated as earnings for NIC purposes for both the employee and employer at the time of payment. If an energy provider is prepared to enter into an energy supply contract with an employer to supply an employee’s property directly, the same tax treatment will arise, but no employee NIC would be due. It is unlikely, however, that energy providers will wish to do this for regulatory reasons. Using salary sacrifice Salary sacrifice is a very common mechanism for delivering BIKs. However, if this is used to help pay an employee’s energy costs on a pound-for-pound basis, the tax treatment is the same as for BIKs.  The NIC treatment would repeat the position for paying the energy provider directly. In this instance, salary sacrifice is probably not worthwhile for employers to consider. Despite this, a longer-term option utilising salary sacrifice to deliver an electric vehicle (EV) car for an employee can be cost-effective, with the added benefit of helping with your organisation’s environmental, social and governance (ESG) agenda. Making a loan Perhaps the most tax/NIC effective way to assist employees would be for the employer to make an interest-free loan. If the loan is capped at less than £10,000, it has no tax implications and is not reportable as a BIK. It also has no NIC implications – this cap includes any existing loans the employee may have from their employer. Higher-value loans are a reportable benefit. An employer can agree to repayment over whatever terms it is comfortable with or write the loan (or part of it) off later. If a write-off occurs, the sum involved will be treated as a BIK and subject to NIC. However, it is essential to note that the loan terms must not include any intention to write it off at the outset, as HMRC will treat a loan as earnings. Caroline Harwood is Partner of National Head of Employment Tax at BDO UK

The right mindset, along with a robust support network, can do much to help women in their careers. Dawn Leane explains the four factors that have contributed to the career accomplishments of successful women in business In my last article, I shared details of a research study carried out by Fiona Dent and Viki Holton for their book, Women in Business: Navigating Career Success, in which successful women revealed the factors that either encouraged or inhibited their careers. Now, we need to look at the factors the participants in that study identified as crucial to promoting and supporting their achievements. Personal work attitude Resilience is essential for women as they navigate hidden challenges and barriers their male counterparts do not face. This includes a strong work ethic and the ability to manage adversity. In her book, Mindset: The New Psychology of Success, psychologist Carol Dweck contends that, from early childhood, we develop one of two mindsets: a fixed mindset or a growth mindset. People with a growth mindset believe that, with effort, we can develop our skills, abilities and talents. They also focus on learning from positive and negative experiences and persevere when facing adversity. In contrast, those with a fixed mindset believe success is based on innate ability. By understanding, challenging and adjusting our mindset, we can change our career trajectory, relationships and happiness. Supportive family and friends In her book Couples That Work, Jennifer Petriglieri discusses how dual career couples face challenges that are usually framed as a zero-sum game, where one partner succeeds at the expense of the other. Couples who thrive develop what Petrigilieri terms a ‘secure base’, meaning both partners are supportive and encourage each other to take risks. The support role is interchangeable. Sometimes, one person is the support, and at other times they are the one being supported. Many participants in Dent and Holton’s study valued the support of their partner, family and friends in achieving success. Having a ‘secure base’ is one of the ways in which women can gain support needed to thrive. Organisational support The support of managers and colleagues is also crucial to women developing their careers. In response to the question “During your career, please indicate the people who have supported you in achieving your goals?”,  87.6 percent of Dent and Holton’s study participants identified their bosses, and 79.9 percent identified colleagues. Almost all participants highlighted the importance of their manager offering encouragement, providing challenging opportunities and the psychological safety of being allowed to experiment and fail. The manager is also crucial to one of the most pivotal points in a woman’s career: maternity leave. Research carried out by Dublin City University, Re-Engaging Talent Post- Maternity Leave: Enablers and Barriers to Positive Reintegration, identified that: “one of the critical factors in determining how women experienced the transition back into work after maternity leave was the perspective management had on maternity leave and this transition in a woman’s career. We saw many positive examples where line managers and/or the organisation viewed their maternity leave as a brief interlude in the individual’s long-term career. In these organisations, the females often reported a positive transition back after leave”. Developmental opportunities, such as a willingness to study for more qualifications and continuing personal and professional development, were also identified as essential factors, as were moving regularly and gaining international experience. Self-awareness A strong awareness of individual skills, career goals and taking advantage of opportunities were also associated with career success. Being unashamedly intentional and strategic about their ambition can feel uncomfortable for women because of their experience and societal conditioning. Having a sponsor, coach or mentor at key junctures allows women to access experience, further develop self-confidence and judgement and remain on track when navigating barriers to success. Dawn Leane is Founder of Leane Leaders and Leane Empower. In October, she will deliver a workshop for aspiring female leaders, Women in Leadership, Navigating the Environment.

With a new UK prime minister in power and a major cabinet reshuffle, what lies ahead now for Northern Ireland? Gillian McAuley gives her take on what the region needs After a summer dominated by the Conservative leadership election, Liz Truss assumed the role of Prime Minister of the United Kingdom last week. For businesses in Northern Ireland, the prospect of a new UK Government represents an important step towards potentially restoring some political certainty in the region. At the British Irish Association Conference in Oxford last week, there were some cautious glimmers of hope for the Northern Ireland Protocol. We are hearing some encouraging noises from the new cabinet. If this opportunity is to be realised, however, all actors in the process must learn from past mistakes. The new UK government and European Union must together adopt a careful and sensitive approach to defining the issues to be addressed and, crucially, the process of resolution must include meaningful engagement with all relevant stakeholders in Northern Ireland, including businesses. The need for agreement could not be more apparent. One business told us recently that, for as long as Protocol issues remain outstanding, investment in the region will suffer. For this business, as inflation takes hold, there is no capacity to continue second-guessing what trade in Northern Ireland will look like six months or a year from now… This is not an isolated case. As inflationary pressures spiral, the need to resolve the Protocol becomes more urgent. To be sustainable, this resolution must be achieved by agreement. There are persistent rumours about an emergency budget in Westminster, suggesting that in the weeks ahead, a package of measures will be introduced to tackle inflation. Decisions also need to be made for businesses in Northern Ireland, however, and the people who live and work here — and, for this to happen, we need a restored Executive. NI Chamber has campaigned for many years for the introduction of multi-year budgets that would facilitate longer-term planning. The business networking group welcomed the move to a three-year budget cycle. Yet, almost halfway through its first year, we remain without a budget and an Executive to deliver it. This is not sustainable. We need urgent action from a restored Executive, with all policy leaders at the table tackling the challenges feeding this crisis – not least the urgent need to address business rates to free up cash flow, which is currently being absorbed by rising costs. Supporting businesses and protecting jobs must be at the top of the new Government’s priority list. Gillian McAuley is President of the Northern Ireland Chamber of Commerce and Industry 

Despite its potential benefits for businesses in distress, a relatively low number have so far availed of the Small Companies Administrative Rescue Process (SCARP) but that is likely to change in the months ahead, writes Hilary Larkin Given the economic headwinds facing businesses, the relatively low take-up thus far of the Small Companies Administrative Rescue Process (SCARP) has been surprising. This is perhaps because the impact of COVID-19 on individual businesses has been masked, to a large extent, by government supports, including Revenue’s debt warehousing scheme and other creditor forbearance. Similarly, Brexit is not fully implemented, and we have yet to feel the full impact of rising energy costs and interest rates on consumer spending and the broader economy. So far, there have been just 10 SCARPs with six having commenced in August. Insolvencies right now are at an artificially low level yet so-called “Zombie companies” continue to trade. It is likely that the level of insolvencies and restructuring cases (including SCARPs) will increase as the true impact of rising costs become apparent in the winter months, and Revenue’s plans to implement debt warehousing repayment plans take shape. What is SCARP? Introduced under the Companies (Rescue Process for Small and Micro Companies) Bill 2021, SCARP is a restructuring tool for SME’s who are facing temporary insolvency affording them the opportunity to restructure through a combination of a write-down of debt and new investment. SCARP is based on the key components of examinership and is subject to strict timelines and rules for meeting quorums and approvals. Careful planning and engagement with key creditors is essential, prior to commencing the process in order to achieve a successful outcome with the required creditor approval levels. Mazars acted as Process Advisor for the country’s first SCARP case in January. We have found that SCARP is ideally suited to small retail and hospitality operations. It is aimed at small and micro-companies and designed to act as a cost-effective restructuring option with limited court involvement. It is likely that many of these businesses will be heavily impacted by oncoming inflationary pressures and will require restructuring support if they are to survive. Process observations SCARP does have some notable limitations, such as no automatic stay on creditor action, and the fact that legal contracts (leases etc.) cannot be varied without court involvement. These issues can only be addressed in SCARP with legal representation and court supervision, adding substantial costs, which could price many small companies out of the process. Revenue can opt out of the process where there is a history of non-compliance with Revenue legislation. In our experience, however, Revenue has engaged constructively with the process to date, which can only positively impact the uptake of SCARP.  Nevertheless, SCARP can be a useful restructuring tool for small companies, allowing them to compromise legacy debt that would otherwise leave them with no option but to enter into liquidation. We would, therefore, strongly advise that all small companies concerned about their short-term solvency consider SCARP and its potential relevance to their circumstances. Hilary Larkin is a Financial Advisory Partner with Mazars