Payroll Assistant - Step 1

PRESENTATION

The ability to calculate payroll manually is an essential skill for everyone working in payroll. It is also necessary at times to estimate an employee's net pay in advance, or pay a mid-period leaver, or explain to employees the entries on their payslips. There is also a statutory requirement to check the figures shown on a new employee's P45.

This online learning programme uses an easy, step-by-step approach, ensuring that each delegate learns by example and practice how to use the various tax and NICs tables. How to complete the different forms for employees who are starting or leaving employment, and how to handle the regular payments and deductions. Week four of the programme explains the calculation of higher rate tax using the Taxable Pay Tables, the special treatment of prefix K tax codes, and the calculation of employers' NICs when employees earn above the upper earnings limit. Practical examples and exercises are included.

Learning Objectives

How the UK Tax and NIC system works

-What PAYE is, understanding the key dates in the tax year, paying the Collector of Taxes, the rates of tax and NICs, personal allowances, tax and NIC thresholds and the importance of NI numbers.

Gross Pay

-What gross pay is, how it is calculated, what additions to pay there might be, what deductions from pay are allowed, what parts of pay are subject to tax and /or NICs, what elements of pay are treated differently for tax and NICs.

Pay and Earnings Periods

-The effect on tax and NICs when employees are paid weekly, fortnightly, four-weekly and monthly, how to use the tax calendar.

Tax Codes

-What a tax code is, how it is calculated, how it is used, the difference between cumulative and non-cumulative, what week1/month1 means, how the HMRC notifies code changes.

Tax Tables

-How to use Pay Adjustment tables, how to use Taxable Pay tables.

NIC Table Letters

-What is an NIC Table letter, how the correct letter depends on personal circumstances and pension scheme membership, how it is used.

NICs Tables

-How to use the three main NICs tables to calculate NICs, how to select the right table.

New employees

-The importance of forms P45, P46 and P38S in setting up new employees, what needs to be checked on the P45, how to complete these forms.

Leavers

-The forms that need to be completed

Calculations

-Step-by-step calculations with examples and exercises in preparation of a manual payroll

The payslip

-The makeup of a payslip, what has to be entered, who has to be provided with one

Tax & NICs

-Review of basic tax and NICs calculations, applying the special procedures required when operating K codes, how to use Taxable Pay Tables C & D for calculating higher rate tax, calculating an employer's Class 1 NICs when the earnings of employees exceed the upper earnings limit (UEL), the correct tax and NICs treatment of expenses.

Calculations of Tax & NICs

-Step-by-step advanced calculations with examples, exercises and tutor assistance.
-Payment Methods.

What support do I get?

Full study packs are issued to all students and this is supported by:

-access to our dedicated telephone help-desk,
-full online learning programme to pace students through the material.
-online discussion with tutors and follow students.
-access the online material at home or work is available 24/ 7 to fit in with your own work and home life patterns.

An optional on-line examination is available at week 7.