POSTED: September 05 2024
Interesting Payroll Facts
Celebrating Payroll history

Interesting Payroll Facts to celebrate National Payroll Week

Caroline Jackson, our Southern Payroll Manager, who inspired by ‘National Payroll Week’, has given us some interesting facts for each day of this week.

National Payroll Week is between 02 to 06 September 2024, which has prompted us to ask the question; where would companies be without the payroll professional who ensures all employees are correctly paid?

National Payroll Week was first established in 1998 to celebrate the crucial role that payroll professionals have in the workplace; some might say they are the unsung hero of a business.

For each day of the week, we have put together some payroll facts for you.

Monday 
The bartering system was historically used for payment of work in the UK however when the Industrial
Revolution arrived in the 18th Century it all changed to a monetary system. This was due to increasing numbers of the UK population being employed in factories and paid in cash.

Tuesday 
Income tax was first brought in as a temporary way to help pay for the Napoleonic Wars. Even now tax retains its ‘temporary’ nature and must be renewed annually by Parliament.

PAYE was introduced into the UK in 1944.

Albert Einstein is rumoured to have said “The hardest thing to understand in the world is the income tax”

Wednesday 
Key payroll legislation which came into effect in the 20th Century includes:

  • The Old Age Pension Act (1908) which ensured the elderly received a state pension.
  • The National Insurance Act (1911) offered workers benefits if they were unable to work.
  • Contracts of Employment Act (1963) workers were given the rights to contracts and notice of
  • termination of contracts.
  • Redundancy Payments Act (1965) introduced payments for workers if they were dismissed.
  • National Minimum Wage Act (1998) to ensure all employees receive a fair minimum wage.

Thursday 
Salary is a word we are all familiar with, but did you know it comes from the Latin word salarium? In ancient Rome soldiers were sometimes paid in salt (Latin word sal) which was an expensive commodity.

The word payroll originated in the mid-18th century to describe the amount of money employees were paid over a period of time.

Friday
We are used to paying taxes on our salaries but historically there have been some strange but true taxes passed.

  • Tax on hats between 1784 and 1836
  • Soap tax ran from 1712 to 1835
  • A tax on windows was in place from 1696 to 1851
  • Beard tax was introduced in 1535 by King Henry VIII

We hope this has given some small extra appreciation for your payroll professionals.

As always, please reach out if you need any further information or if you feel we can help.