Advanced Payroll Management:

This qualification covers the theoretical knowledge and demonstration of the use of various tables and publications issued by HMRC and the demonstration of how to carry out computerised handling of payroll related matters. You must be able to demonstrate their ability to understand and carry out processing of the following:

Theory of payroll, including: Understand the law relating to payroll, discrimination, employment status, data protection and confidentiality

• The legislation for PAYE and National Insurance Contributions (NICs)
• The requirements of the Working Time Directive
• The Statutory Minimum Wage
• Pension scheme and the different types of pension schemes together with the effect they may have on PAYE and NI deductions
• The “Real Time Information” (RTI) scheme
• Deadlines that apply for submitting information to HMRC

Calculate, the various payments that can make up an employee’s gross Pay, including:Calculate, the various payments that can make up an employee’s gross Pay, including:

• Calculate, the various payments that can make up an employee’s gross Pay, including:
• Paid holiday in advance

National Insurance Contributions :Contracted in and contracted out NI contributions

• NI contributions for a gross pay figure
• NICs for an employee being paid for periods (such as holidays) in advance

PAYE Tax codes

• Calculate the amount of pay that is taxable for an employee with a given tax code and PAYE to be deducted
• Change in tax code issued by HMRC (Forms P6 and P9)

Statutory deductions, including:

• Student loans, and

• Attachment of earnings

Directors: NI deductions for Directors

• NI deductions using the “non Cumulative” (“Alternative” or “Table method”) and the “Cumulative Director method”

Benefits in Kind (BIK):The impact BIK has on an employee’s pay and their employer’s costs for; company car, private fuel, loan, private health insurance, other common basic benefits assuming all required details are provided and complete

• Forms P11D, P11D(b) and P9D with details relating to the benefits and the deadlines by which they must be submitted

Construction Industry Scheme (CIS):The basic principles behind CIS

• Understand the duties of a contractor to verify sub-contractors
• Correctly calculate the amount of tax to be deducted if applicable

Various forms that apply to a business running a payroll, including:P45, P46, P11 &P32; P60

Using a Cloud payroll package (Bright Pay): Installing, setting up, configuring and using it to produce accurate, comprehensive reports from a range of payroll scenarios encountered in a business of up to 10 employees.

• Setting up the details of a new business including appropriate company and existing employee details. Some existing or new employees may be directors who undertake to have their NI deducted using different methods or employees who work irregular hours. Enter and process payroll for a variety of different pay periods and produce reports detailing gross pay, deductions and net pay for each period
• Periodic back-ups of payroll-related information.
• Produce summary reports
• Deal with new employees, and employees leaving
• Carry out or simulate a month end procedure under RTI and produce a number of required reports including potential adjustments resulting from CIS deductions and any other recoverable amounts. Note: under the new RTI scheme it is impossible to produce the month end information unless you are using a live business. Be prepared to be able to show what information would be submitted or to explain how this would work
• Note: the ‘Basic PAYE Tools’ package provided by HMRC does not offer the level of sophistication required to cover this part of the syllabus.
  
  Scenarios may include: Making advance payment of holiday pay to an employee
• Making a bonus payment to a defined range of employees
• Configuring an attachment of earnings
• Setting up a pension scheme for a range of employees.
• Making Statutory payments for Sickness, Maternity, Paternity, Adoption
• Processing a change to an employee’s tax code or basis under which a tax code operates
• Configuring deductions of student loan repayments