Basic payroll

Clearly a poor payroll service can damage staff morale just as an effective one can be a positive benefit, adding value to your company as a whole.

This seminar will be relevant whether your payroll is calculated manually or run on computer.

At the end of the programme, you will be able to calculate the gross to net pay using the tax and NI tables.

Programme1. Introduction to PAYE

• How to open a PAYE sheme
  
  
• An employer's responsibilities under PAYE legislation
  2. PAYE basics
  
  
  
• HM Revenue & Customs tax districts, and PAYE references
  
  
• Role of the Inspectors of Taxes
  
  
• The role of the payroll department
  
  
• Tax rates and earnings bands
  
  
• Who is an employee for payroll purposes?
  
  
• What is 'pay' for PAYE purposes?
  
  
• Pre-tax and post tax deductions, tax allowances and tax codes
  
  
• Unusual tax codes including BR, OT, NT and K codes
  3. Using the Pay Adjustment Tables to ascertain taxable pay
  
  
  
• How to calculate tax due on taxable pay using the Taxable Pay Tables
  
  
• Dealing with tax refunds
  
  
• Use of P45 information and how to deal correctly with Form P46
  
  
• PAYE exercises, testing knowledge acquired in the basics session
  4. Review of PAYE exercises
  
  5. National Insurance basics
  
  
  
• Who pays NI?
  
  
• Classes and categories of contributions
  
  
• What earnings are liable to NI?
  
  
• What is an earnings period?
  
  
• Earnings thresholds for both employees and employer and how these affect payroll
  6. Calculation of National Insurance Contributions
  
  
  
• Standard rate NIC
  
  
• Reduced rate contributions
  
  
• Employer only rate contributions
  
  
• Contracted out contributions
  
  
• How to calculate NI contributions using both percentage and the table methods
  
  
• NI on earnings over the upper limit
  
  
• Interaction of NI and pensions
  
  
• NI exercises - testing knowledge gained
  7. Payment of PAYE and NI to the Collector of Taxes
  
  
  
• Calculation of monthly remittance - 2004/2005
  
  
• Paying the remittance to the Collector of Taxes
  
  
• Electronic payments
  8. Final payroll calculation exercise
  
  
  
• Using skills acquired during the day to calculate gross to net pay for five employees
  9. Review of final exercise and questions
  
  What previous delegates have said...'Very well executed by Alexandra. She was very helpful and good at explaining problem areas'.
  
  Miriam Blakey, HR Administrator, International Power
  
  'Speaker was excellent and maintained a good pace with clear explanation throughout'
  
  Craig Farmer, Payroll Officer, The British Council