This National Payroll Week 2025, we're taking a moment to reflect on some of the most complex payroll items we've handled over the last year. While many people think of payroll as a simple button-press, the reality is that it's a tightrope walk of regulations, calculations, and detailed compliance.
Here are two examples that highlight why professional payroll support is so crucial.
Shared Parental Leave: The Puzzle of Two Parents
Shared Parental Leave (SPL) is a fantastic option for modern families, but for payroll teams, it’s far from straightforward. The moment an employee requests SPL, a series of complex checks begins.
One of the biggest challenges is that to calculate the correct entitlement, we need details about the other parent—someone we have no direct contact with. We need to confirm:
The eligibility of the other parent based on their employment and earnings.
That all the correct forms have been completed and submitted.
That the two parents are taking the correct amount of leave, and that it falls within the legal limits.
If any of this information is incorrect, the employee could be under or overpaid, and the business could be non-compliant. A single misstep could lead to financial stress for the employee and compliance issues for the company. It’s a perfect example of how a seemingly simple request becomes a deep-dive into complex legislation and communication.
Attachment of Earnings: When the Numbers Don't Match
Another recent challenge involved an Attachment of Earnings Order for council tax. We were required by the council to deduct an amount of the employees wage dependent on the amount owed to repay the debt.
In this particular case, a letter from the council stated how much was owed however the following week, they sent a second letter with a different figure after we had calculated the amount owed. This immediately raised a red flag. We couldn't simply take either amount, as both could be incorrect.
The council was contacted and they provided access to a portal that showed the updated, correct amount—which covered two separate years of part unpaid council tax.
The complexity didn't stop there. We then had to:
Apply the correct percentage deduction as per the table the order gave with earnings and percentages shown.
Ensure that the employee's net pay did not fall below the National Minimum Wage after the deduction.
This process required not just a calculation, but an investigation and a manual override of standard processes to ensure compliance and avoid harming the employee.
Beyond the Paycheque: The True Value of a Payroll Professional
These examples are just two of many complex issues that we handle every week. Beyond SPL and Attachment of Earnings, we are constantly navigating:
Tax Code Changes: Every change to an employee’s tax code requires a new calculation and submission.
Real-Time Information (RTI): We must make correct and timely submissions to HMRC for every single pay run.
Statutory Payments: From Statutory Sick Pay to Jury Service, the rules for when and how to pay employees for time off are constantly changing.
This is why using a professional payroll practice is so important. We are not just pressing buttons; we are acting as your company’s compliance and data accuracy safeguard. We make it our business to stay up-to-date with every piece of legislation so that you don't have to.
This National Payroll Week, consider the peace of mind that comes from knowing your payroll is in expert hands. We ensure your team is paid accurately and on time, allowing you to focus on growing your business, not on navigating the complexities of payroll.