Level 1 Certificate in Payroll

Introduction

The overall aim of the qualification is to accredit candidates' knowledge and understanding of the fundamental principles relating to the basic calculations and preparation of a weekly or monthly payroll, using manual routines but with the aid of the HMRC ‘Calculators' as provided on the HMRC CD-Rom.

Within the qualification, candidates have the opportunity to gain some knowledge of income tax and National Insurance calculations for the PAYE employee. Candidates are also introduced to the use of the HMRC CD-Rom by using the ‘Calculators' given by HMRC for the calculation of Income Tax and National Insurance Contributions.

This qualification requires candidates to understand those payments which constitute Gross Pay for full time and part time employees and therefore liable for taxation and National Insurance contributions. Candidates are also required to understand the basic differences between being employed and self-employed.

The manual processing of payroll data, such as hours worked, hourly rates, bonuses and commissions are important elements of the IAB Level 1 Certificate in Payroll qualification.

Candidates may progress to the IAB Level 2 Certificate in Payroll and IAB Level 2 Certificate in Computerised Payroll, on successful completion of this qualification. It is recommended, although not essential, for candidates to complete the IAB Level 2 Certificate in Payroll before proceeding to the IAB Level 2 Certificate in Computerised Payroll.

To be awarded the qualification, candidates are required to successfully demonstrate their competence in by means of an external examination. It will also provide progression to the NVQ in Payroll Administration at Level 2. Candidates will receive acknowledgement of successful completion this qualification.

Unit Assessment

The examination of this single unit qualification will be of 1½ hours duration. Any examinations sat from 1st September to 31st August of the following year will be set using information relating to the Tax Year legislation in operation as at 1st September. For example the examinations set for January 2009 and June 2009 will be set using legislative limits relating to Tax Year 2008/09.

Candidates may sit the Examination of this Unit on either the specific dates set and published by the IAB or on dates set by Centres on an ‘On-demand' basis.

Unit specification IAB Level 1 - Certificate in Payroll

Single Unit 1 (Iab Code P1) - Making Basic Payroll Calculations
Aim of the Unit

Upon the completion of study for this qualification, it is intended that the candidate will be able to:

• Provide an introduction to the Payroll Function
• Make simple Gross Pay calculations
• Adjust pay for basic Statutory Deductions
• Complete and maintain key documents and records
• Understand basic methods of payment