Level III Diploma in Payroll Management
Syllabus
Type of Examination: Home-based Assessment
This qualification covers advanced manual and computerised payroll techniques including holiday pay, statutory payments and student loan repayments and the requirements for directors including benefits in kind. Students must be able to demonstrate their ability to understand and carry out the following functions for both parts:
Part 1 - Manual Payroll
1) Explain the legal requirements covering the following:
a) Holiday pay
b) Statutory Sick Pay
c) Statutory Maternity/Paternity/Adoption Pay
2) Calculate and make relevant entries for the following:
a) Holiday Pay
b) Statutory Sick Pay
c) Statutory Maternity/Paternity/Adoption Pay
3) Explain the legal requirements for PAYE and National Insurance covering benefits in kind e.g. company cars, business mileage, private medical insurance, loans, relocation packages
4) Calculate the tax and National Insurance due when an employee is given:
a) A company car
b) Business mileage
c) Fuel
d) Employees using their own cars
5) Explain how various benefits such as bonuses and deferred payments to Directors can affect their payment of PAYE and National Insurance contributions.
6) Explain:
a) Why a P45 is used and what it represents
b) When and how a form P46 is used
7) Explain:
a) Tax codes including K codes
b) Period 1 basis
c) Repayment of student loans
d) Attachments of earnings
8) Explain the requirements for:
a) Working Time Directive
b) Statutory Minimum Wage
9) Explain
a) The difference between contracted in and contracted out contributions
b) Payment of NI contributions for persons with more than one job
10) Use appropriate tables to calculate the national insurance deductions for a given gross pay figure or both contracted in and contracted out employees
11) Complete the relevant parts of form P11 for PAYE and national insurance contributions for both contracted in and contracted out employees
12) Complete form P32 for a business at month end using P11 forms, and a P35 for a business at year end.
Part 2 - Computerised Payroll
1) Set up the details of a business including:
- Company details (Name, rates of pay etc)
- Employee details (name, employee no. tax codes including K Codes, week 1 basis)
2) Enter pay details to cover the following situations:
- Basic gross pay
- Overtime
- Holiday Pay
- Statutory Sick Pay
- Statutory Maternity/Paternity/Adoption Pay
- Benefits in kind
- Tax codes including K codes
- Week 1 basis
- Repayment of student loans
- Directors
3) Process the leaving of an existing employee and start of a new employee, producing associated forms
4) Run the payroll and produce the reports which will give details of gross pay, tax and NI paid, other deductions as appropriate and net pay
5) Complete or simulate a year-end and produce appropriate reports
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