Payroll Systems and Management Certification Level 2
The Payroll Systems and Management Certificate is designed to provide the knowledge and skills required by those who wish to work in the payroll administration section of a Human Resources Department and for those who must have an understanding of the rules and regulations governing the payment of salaries and wages in the UK.
Employees enrolled on this course have two chances to complete and pass the end-of-course test. They also have lifetime access to the learning modules, so they can refresh their knowledge at any time.
What’s Covered in the Course?
What a payroll system is and why every organisation needs one;
- The basics of payroll systems: what you need to know, what to avoid and the importance of communication;
- The types of payroll systems in the United Kingdom: what to include in the system and working with HMRC;
- Elements of an efficient payroll system: staff training, performance reviews and recordkeeping;
- How employees entering and leaving the business impacts payroll: what to do, P45's and recording time keeping;
- How to deal with HMRC, when it comes to new employees, what information HMRC will need from the organisation and how to ensure that employees are paid the correct amount each month or week;
- How to calculate gross and net pay: the difference between gross and net pay and why the business must issue a wage slip for each employee;
- The different deductions to calculate net pay amounts;
- What statutory pay is: recordkeeping and reporting to HMRC;
- National minimum wage, based on age groups;
- National Insurance contribution systems: why employees pay National Insurance, the different rates and employer contributions;
- How to manage the online PAYE system;
- What the employment allowance is;
- Retirement schemes;
- Different programmes available for payroll;
- Tips to correct payroll errors;
- The importance of annual reporting.
What are the Benefits of the Course?
- A professionally administered payroll contributes to staff satisfaction and morale;
- Successful learners will have a comprehensive understanding of how to manage the organisation’s payroll within the United Kingdom;
- During the course of 23 comprehensive modules, employees will learn the essential tools and knowledge needed, in order to complete a payroll in an effective and orderly manner;
- The course is offered online, which enables the employee to study at their own pace and in their own time, using any device connected to the internet,
- Upon successful completion of the course, the learner will be awarded with a certification, which is industry-recognised and verifiable.
- What exactly a payroll system is
- Why you need an effective payroll system in place at all
- How a large business and small business work differently in terms of their payroll systems
- What you need to know in terms of HMRC (the taxman)
- The basics of how to set up a payroll system
- Safety measures in case of unforeseen circumstances
- Communication issues and what happens if you don't communicate important information
- Paperwork you will need to generate
- Reiteration on why you need an effective payroll system in place
- The fundamental points of what a payroll system needs to include
- Why payroll and HMRC requirements go hand in hand
- Why a high quality payroll system keeps employees happy overall
- Why it is important to familiarise yourself with the ins and outs of your payroll system
- Training staff on how to run your payroll system
- Why it is important to regularly review your system and maintain it
- Communication is literally everything when it comes to the best payroll system you can implement
- What to do when an employee starts employment within the company, including the procedure you will need to follow
- What to do when an employee leaves employment within the company, including the procedure you will need to follow
- What is a P45? And why do you need the information within it?
- Communication issues relating to employment changes and why this is a vital part of the payroll system for your business
- What you need to do when a new employee joins the company, including the paperwork and information you need in order to set them up on your payroll system
- Why HMRC need to know such information relating to employment changes, to reinforce your understanding
- What to do in relation to student loan deductions from an employee's salary and how to report deductions to HMRC
- How you can ensure your new employee gets paid correctly and on time, and why this is so vitally important
- Exactly what gross pay is
- Exactly what net pay is
- How to calculate these types of pay, bearing in mind that software often does the hard work for you
- The importance of payroll software in calculating net and gross pay, as well as why your software should produce a clear wage slip for your employees to understand
- Exactly what net pay is, and why it differs from gross pay
- What a voluntary deduction is, and some examples
- What a statutory deduction is
- How voluntary and statutory deductions affect an employee's pay at the end of the week or month
- What exactly is statutory pay?
- When can an employee claim statutory pay, and how long can they claim it for?
- How does an employee qualify for statutory pay, and what are the exceptions?
- Record keeping in relation to statutory pay, what do you need to do?
- What exactly the National Minimum Wage is in the UK
- How the National Minimum Wage affects apprentices
- Who isn't entitled to the National Minimum Wage
- What happens if you don't pay an employee the National Minimum Wage
- What is the National Insurance Contributions system (NIC)? And what actually is National Insurance?
- Why do we pay National Insurance? What do contributions entitle us to as workers, both now and in the future?
- Different types and rates of National Insurance, and what they mean for your employee. A general overview of the system types, and who they apply to.
- Employer's National Insurance contributions, rates and explanation.
- Exactly what the National Insurance system is, and what it is for
- The potential reasons why an employee may pay less National Insurance contributions through their wage statutory deductions
- How do you report to HMRC that an employee is paying less National Insurance
- Recordkeeping in relation to National Insurance contributions
- What is the PAYE system in the UK?
- Why is the PAYE system beneficial for both employers and employees?
- What are tax codes, and why are they important?
- How do you send PAYE information to HMRC?
- Exactly what the PAYE system is in the UK
- An employer's responsibilities in terms of PAYE and reporting to HMRC
- How to report PAYE information to HMRC, reiterating previous knowledge
- What to do if you employ someone else to run your payroll duties and your responsibilities in accordance with this
- What exactly is the Employment Allowance?
- How does the Employment Allowance benefit a business?
- Reiteration on Class 1 National Insurance contributions (NICs) for both employees and employers
- When can you claim Employment Allowance?
- What exactly is an employment termination payment?
- Under what circumstances would an employment termination payment be made?
- Payments in relation to redundancy - what are they? How are they taxed? How are they reported?
- Why is the subject of employment termination payments such a grey area?
- What is retirement? A quick definition of the term
- Different types of pension schemes, and what they mean for the employee
- Workplace pensions, the ins and outs explained
- State Pension, the ins and outs explained
- What is RTI (Real Time Information)?
- How do RTI and PAYE go hand in hand?
- How do you report payroll information in RTI? Who undertakes this task?
- What to do if you outsource your payroll duties
- What does payroll software actually do? Why does a business need it?
- Why your software needs to be HMRC tested and recommended
- Software options for small businesses, with 10 employees or less
- Software options for larger businesses, with more than 10 employees
- How can an error to payroll occur?
- What are the consequences of not correcting errors to your payroll submission to HMRC?
- What to do if you pay your employee too little, or too much
- What to do if you report the wrong pay or deductions to HMRC/you pay HMRC incorrectly
- Why do employers need to keep employee records, and what information needs to be kept? How long does this information need to be kept for?
- Data Protection - why an employer needs to comply, and what this consists of
- Payroll records from HMRC point of view, what you need to do, and what records you need to keep
- Tax Compliance Checks - What is this? Exploring the ins and outs
- What the end of the tax year means for employers. What to do as 6 April approaches, the beginning of the new tax year.
- Sending your final payroll report for that tax year
- Why you must update payroll records for every employee
- Why you must update your payroll software
- A reminder of the general tasks associated with a payroll system
- A reminder of why businesses must comply with HMRC guidelines
- Legal obligations in terms of the National Minimum Wage
- Legal obligations in terms of PAYE (Pay As You Earn) and RTI (Real Time Information)
Who can take the Payroll Systems and Management Certification Level 2 course?There are no entry requirements to take the course.
What is the structure of the course?The course is broken down into 23 individual modules. Each module takes between 20 and 90 minutes on average to study. Although students are free to spend as much or as little time as they feel necessary on each module.
Where / when can the course be studied?The course can be studied study at any time and from any internet connected device
Is there a test at the end of the course?Once you have completed all 23 modules there is a multiple choice test. The questions will be on a range of topics found within the 23 modules. The test, like the course, is online and can be taken a time and location of your choosing.
What is the pass mark for the final test?The pass mark for the test is 70%.
What happens if a user fails the test?If the user doesn’t pass the test first time they will get further opportunities to take the test again after extra study. There are no limits to the number of times a test can be taken.
How long does it take to complete the Payroll Systems and Management Certification Level 2 course?We estimate that the course will take about 10-15 hours to complete in total, plus an additional 30 minutes for the end of course test.