6th April 2016
Happy Financial New Year! Just like January 1st, this is a perfect time to reflect on the year past and make changes for the year ahead. We’ve made some resolutions for the new tax year that go a little further than the ‘Go To The Gym More’ resolution we made in January. Have you made a list of New Tax Year Resolutions yet? Here are some we recommend if you want to improve your payroll in 2016.
- Embrace expansion
Many companies are expanding and launching new initiatives to generate revenue, resulting in a need for increased business analysis and strategic involvement from payroll personnel. The current regulatory climate, with its increasingly complex mandates, is also adding to the need to be completely on top of things, so that brand reputation is protected as the business expands – there have been too many embarrassing moments lately involving payroll data theft and fraud at big brand names.
- Remain compliant
The regulatory and HR environment is likely to continue to become more and more complex. With legislation changes already in place, such as the new Scottish rate of income tax and National Living Wage, finding enough time to cope with the administrative burden of payroll is becoming difficult. Many companies are exiting 2015/16 tax year with a view to changing payroll in this New Tax Year.
- Invest in technology
Employees, especially Millennials, expect to deal with an employer easily. In the future, online contact will become one of the most important channels for HR departments and their stakeholders, including employees and managers.
A survey by the Chartered Institute of Payroll Professionals in 2014 found that a third of organisations used online payslips rather than sending paper payslips out by post. By embracing and understanding these advances now, your business infrastructure will be prepared for employee expectations.
- Be prepared for outsourcing
In order to stay profitable and balance business expansion, companies will increasingly outsource key functions. 98% of finance directors are challenged with finding finance service professionals. Outsourcing offers a strong opportunity within the HR and payroll department to tackle the problem of finding skilled employees. Approximately two thirds of HR professionals say that selectively outsourcing administrative tasks and specialized knowledge alleviates the burden on internal staff and ensures appropriate and acceptable compliance with laws and regulations. Payroll outsourcing in particular can be a powerful asset in reducing costs while retaining specialized expertise.
Kick off your financial new year the right way. Be mindful of the trends ahead and learn from the year behind. To help you make your own New Tax Year Resolutions, download our ebook about the Top 10 Issues for 2016.