Payroll Level 2

Objectives:

To teach the manual payroll to an employable level and to cover the syllabus requirements for the IAB Level 2 Award in Practical Payroll examination.

Course Content

Lesson One – Including: Functions of manual payroll, overview of the Pay As You Earn (PAYE) system, the need for accurate record keeping, the importance of Data Protection and Confidentiality in relation to payroll, being aware of the Asylum and Immigration Act 2006

Lesson Two – Including: Different methods of calculating pay, difference between gross and net pay, minimum rates of pay, calculating gross pay including basic pay, overtime bonus and commission payments

Lesson Three – Including: The role of HMRC, understanding what PAYE is , gaining an awareness of tax allowances, the various tax codes and forms, using the HRMC Employers CD Rom to look up tables, completing the income tax part of P11 Deductions Working sheet, calculating income tax using BR and K codes

Lesson Four – Including: Different classes of National Insurance Contributions, different National Insurance Tables, the difference between contracted in and contracted out,, completing the National Insurance section of the P11 Deductions Working Sheet, calculating NIC for categories A and C

Lesson Five – Including: Different methods of paying wages, the need to record account entries, preparing a wages summary, preparing payslips, drawing up a payment schedule, calculating the cost of wages

Lesson Six – Including: Statutory Sick Pay, Statutory Maternity Pay, Statutory Paternity Pay, Statutory Adoption Pay. knowing how to recover statutory additions to pay, being aware of Small Employer’s Relief

Lesson Seven – Including: Setting up a new employee, purpose of a P45, when a P46 is required, processing a tax refund on the first pay day, processing a leaving, calculating holiday pay and back pay, completing and finalising entries on a P11, using the information on a P45 to start a new P11.

Lesson Eight – Including: Different types of pension, voluntary and statutory deductions, student loan repayments, attachment of earnings order, including an CTAEO, processing pre-tax and post tax contributions, calculating NIC for categories D and F, calculating wages with additional deductions, processing holiday pay

Lesson Nine – Including: Using the HMRC calculators in order to calculate PAYE Tax, National Insurance Contributions, Statutory Sickness Pay and Student Loan Repayments

Lesson Ten - Including: Setting up an employer database, entering employee details, using the P11 calculator, entering employee pay details, viewing the P11 summaries

Lesson Eleven: Including: Revision exercises, using the employer database in order to view and edit employee details, further awareness of the P11 calculator, calculating gross pay for non standard periods, knowing how to process a D0 code, knowing about form P32.