Code of ethics enhances trust of practitioners and brand image of the profession
There is no other department in an organization that is privy to as much confidential information as payroll. With access to information such as work history, family status, work performance and salary and bonuses for each employee, it’s crucial the members of the payroll department conduct themselves with the utmost integrity — and that’s where a code of ethics comes in, said Steven Van Alstine, vice-president of education at the Canadian Payroll Association (CPA).
The CPA does not have a specific code of ethics but has a code of professional conduct with ethics embedded. All certified payroll compliance practitioners and certified payroll managers must adhere to the code in order to receive certification. All members of the CPA are encouraged to follow this code as well, said Van Alstine.
“Ethics defines accepted behaviour, promotes a high standard of practice, provides benchmarks and establishes responsibilities,” said Van Alstine. “A code of professional conduct, or ethics, is a vehicle for occupational identity.”
The first part of the code surrounds standards for professionalism. This includes items such as members acting in the interest of employees, employers and interested third parties, avoiding conflicts of interest, such as paying family members, and employing technical expertise with care.
“Compliance is a huge responsibility for an organization so it’s important for individuals who are maintaining certification, from a code perspective, to behave professionally and keep up to date with their obligations, such as monitoring legislative changes,” said Van Alstine.
The next section of the code focuses on community. This includes the responsibility to act with trustworthiness, integrity and objectivity and to not discriminate against a person for any reason.
“Employees, the employer and business partners need to be able to trust you are representing the breadth of your responsibilities well,” said Jeff Koven, a senior leader at Aon Hewitt Canada based in Toronto. “They need to trust you understand the technical side and the management side as well as where payroll fits into the big picture.”
The code also looks at the authoritative knowledge of the members. It includes regulations for respecting personal and confidential relationships and disclosing an employee’s affairs and material discrepancies.
“Along with compliance, accuracy and timeliness, the thing that is a priority to me is confidentiality,” said Koven. “Payroll is the crossroads of finance, legal and HR and if you don’t have the sense of confidentiality in those employees, you don’t have anything.”
The American Payroll Association (APA) has had a specific eight-point code of ethics since its inception in the early 1980s. Similar to the CPA, the code governs the association’s certified members but all APA members are encouraged to follow it as well, said James Medlock, director of education and training at the APA.
“APA’s code of ethics outlines the responsibilities someone in the payroll profession has both towards their employer and towards fellow payroll professionals to assist them in doing their jobs the most efficiently and effectively as possible,” said Medlock.
The code has been beneficial to the APA in that it allows individuals to identify the ethical behaviours in a payroll operation, he said.
“In many cases, some organizations are told to do things that are not within the guidelines of compliance that the U.S. federal government requires,” said Medlock. “This way, they can go back to the code of ethics and look at the requirements.”
Both the CPA and APA’s codes include a section on enforcement stating members shall be subject to disciplinary action for any offence that is a breach of the code, and this could include loss of certification.
A code of ethics outlines moral principles that guide an individual and this is something employers should make sure governs everybody who performs the payroll function, said Van Alstine. Employers should seek to hire those who exhibit honesty, trustworthiness and integrity and they should conduct an extensive background and criminal check, said Koven.
Each payroll manager should also make sure their department is adhering to the code of ethics.
“It’s a best practice in payroll management,” said Koven. “Make sure everyone has a code of ethics and it is aligned to the organization. If that’s not happening in a large organization, there could be a problem.”
The code should be included in the payroll department policies and manuals, said Medlock. Posting the code on the wall is another good idea for quick reference and a daily reminder, said Koven.
Having a code of conduct or ethics across the profession also shows payroll has hit a “certain level of maturity” as a profession, said Van Alstine.
“A profession that is recognized as having a code of ethics demonstrates to the business community payroll (practitioners) are professionals in the nature of their work,” said Medlock.
The code also enhances the reputation of the payroll profession, said Van Alstine. People have greater confidence in payroll practitioners when they know they are working with and adhering to a code, he said.
“Because payroll is so confidential and they are dealing with very private information, that brand or reputation is almost inherent,” said Van Alstine. “But by emphasizing ethics, it can really enhance that brand image.”
American Payroll Association’s code of ethics
1. To be mindful of the personal aspect of the payroll relationship between employer and employee and to ensure harmony is maintained through constant concern for the payroll professional’s fellow employees
2. To strive for perfect compliance, accuracy and timeliness of all payroll activities
3. To keep abreast of the state of the payroll art with regard to developments in payroll technologies
4. To be current with legislative developments, actions on the part of regulatory bodies and the like insofar as they affect payroll
5. To maintain the absolute confidentiality of the payroll within the procedures of the employer
6. To refrain from using association activities for one’s personal self-interest or financial gain
7. To take as one’s commitment the enhancement of one’s professional abilities through the resources of the American Payroll Association
8. To support one’s fellow payroll professionals both within and outside one’s organization.
The CPA does not have a specific code of ethics but has a code of professional conduct with ethics embedded. All certified payroll compliance practitioners and certified payroll managers must adhere to the code in order to receive certification. All members of the CPA are encouraged to follow this code as well, said Van Alstine.
“Ethics defines accepted behaviour, promotes a high standard of practice, provides benchmarks and establishes responsibilities,” said Van Alstine. “A code of professional conduct, or ethics, is a vehicle for occupational identity.”
The first part of the code surrounds standards for professionalism. This includes items such as members acting in the interest of employees, employers and interested third parties, avoiding conflicts of interest, such as paying family members, and employing technical expertise with care.
“Compliance is a huge responsibility for an organization so it’s important for individuals who are maintaining certification, from a code perspective, to behave professionally and keep up to date with their obligations, such as monitoring legislative changes,” said Van Alstine.
The next section of the code focuses on community. This includes the responsibility to act with trustworthiness, integrity and objectivity and to not discriminate against a person for any reason.
“Employees, the employer and business partners need to be able to trust you are representing the breadth of your responsibilities well,” said Jeff Koven, a senior leader at Aon Hewitt Canada based in Toronto. “They need to trust you understand the technical side and the management side as well as where payroll fits into the big picture.”
The code also looks at the authoritative knowledge of the members. It includes regulations for respecting personal and confidential relationships and disclosing an employee’s affairs and material discrepancies.
“Along with compliance, accuracy and timeliness, the thing that is a priority to me is confidentiality,” said Koven. “Payroll is the crossroads of finance, legal and HR and if you don’t have the sense of confidentiality in those employees, you don’t have anything.”
The American Payroll Association (APA) has had a specific eight-point code of ethics since its inception in the early 1980s. Similar to the CPA, the code governs the association’s certified members but all APA members are encouraged to follow it as well, said James Medlock, director of education and training at the APA.
“APA’s code of ethics outlines the responsibilities someone in the payroll profession has both towards their employer and towards fellow payroll professionals to assist them in doing their jobs the most efficiently and effectively as possible,” said Medlock.
The code has been beneficial to the APA in that it allows individuals to identify the ethical behaviours in a payroll operation, he said.
“In many cases, some organizations are told to do things that are not within the guidelines of compliance that the U.S. federal government requires,” said Medlock. “This way, they can go back to the code of ethics and look at the requirements.”
Both the CPA and APA’s codes include a section on enforcement stating members shall be subject to disciplinary action for any offence that is a breach of the code, and this could include loss of certification.
A code of ethics outlines moral principles that guide an individual and this is something employers should make sure governs everybody who performs the payroll function, said Van Alstine. Employers should seek to hire those who exhibit honesty, trustworthiness and integrity and they should conduct an extensive background and criminal check, said Koven.
Each payroll manager should also make sure their department is adhering to the code of ethics.
“It’s a best practice in payroll management,” said Koven. “Make sure everyone has a code of ethics and it is aligned to the organization. If that’s not happening in a large organization, there could be a problem.”
The code should be included in the payroll department policies and manuals, said Medlock. Posting the code on the wall is another good idea for quick reference and a daily reminder, said Koven.
Having a code of conduct or ethics across the profession also shows payroll has hit a “certain level of maturity” as a profession, said Van Alstine.
“A profession that is recognized as having a code of ethics demonstrates to the business community payroll (practitioners) are professionals in the nature of their work,” said Medlock.
The code also enhances the reputation of the payroll profession, said Van Alstine. People have greater confidence in payroll practitioners when they know they are working with and adhering to a code, he said.
“Because payroll is so confidential and they are dealing with very private information, that brand or reputation is almost inherent,” said Van Alstine. “But by emphasizing ethics, it can really enhance that brand image.”
American Payroll Association’s code of ethics
1. To be mindful of the personal aspect of the payroll relationship between employer and employee and to ensure harmony is maintained through constant concern for the payroll professional’s fellow employees
2. To strive for perfect compliance, accuracy and timeliness of all payroll activities
3. To keep abreast of the state of the payroll art with regard to developments in payroll technologies
4. To be current with legislative developments, actions on the part of regulatory bodies and the like insofar as they affect payroll
5. To maintain the absolute confidentiality of the payroll within the procedures of the employer
6. To refrain from using association activities for one’s personal self-interest or financial gain
7. To take as one’s commitment the enhancement of one’s professional abilities through the resources of the American Payroll Association
8. To support one’s fellow payroll professionals both within and outside one’s organization.
