Step 3 Advanced Payroll Technician - 9 Week online learning Course

On completion of the course the student has the choice of taking two optional BTEC/Edexcel examinations. The first exam is a step 2 BTEC Advanced Certificate Level 3 in Payroll Techniques and the second exam is a step 3 Advanced Certificate in Payroll Procedures.

The aim of this practical 23-week online learning course is to enable each delegate to gain sufficient knowledge to take the optional BTEC/Edexcel accredited exam and gain a step 2 Intermediate award and or a step 3 Advanced certificate in payroll procedures. The first fourteen weeks of the course are based on the same material from the stand-alone 14-week online learning basic programme.

The ability to calculate payroll manually is an essential skill for everyone working in payroll, but not simply to understand what the computer is actually doing. It is also necessary at times to estimate an employee's net pay in advance, or pay a mid-period leaver, or explain to employees the entries on their payslips. There is also a statutory requirement to check the figures shown on a new employee's P45.

This online learning programme uses an easy, step-by-step approach, ensuring that each delegate learns by example and practice how to use the various tax and NICs tables, how to complete the different forms for employees who are starting or leaving employment, and how to handle the regular payments and deductions required. Week four of the programme explains the calculation of higher rate tax using the Taxable Pay Tables, the special treatment of prefix K tax codes, and the calculation of employers' NICs when employees earn above the upper earnings limit. Practical examples and exercises are included.

Other essential aspects of payroll processing that are covered during the course are common problem areas, such as deductions from wages, recovering overpayments, and the payment of expenses and holiday pay are explained, along with examples. An overview is included of the impact on payroll of other legislation, including Working Time Regulations, the National Minimum Wage Act, and the Asylum and Immigration Act.

Weeks 8 to 14 include:-

Calculating court orders, student loans and tax credits.

Calculating Statutory Sick Pay (SSP) and sickness absence generally, Statutory Maternity Pay (SMP) and maternity leave and other rights, Parental Leave and the statutory right to take time off to care for dependants along with Statutory Paternity Pay (SPP) and Statutory Adoption Pay (SAP) The programme is supported by a variety of realistic examples and exercises.

Students are given adequate time to understand the statutory obligations of employers and rights of employees, and their relationship with the employer's occupational sickness and maternity schemes. Although many employers have computer systems that handle much of the work in processing SSP and SMP, there are many factors that must be considered to ensure full compliance and assist employees with their questions. Delegates will benefit from clear explanations of the difficult monetary and date calculations and the use of the various forms and tables, along with a comprehensive course manual and a number of practical exercises and use of our practical on-line calculators for both SSP & SMP.
Students will become familiar with all of the statutory rights and obligations, and learn how to calculate entitlements manually, how to complete the forms accurately, and how to reclaim the correct amounts.

Weeks 15 to 23

Year-end Returns
• Step-by-step review of each year-end return, including P14 End of Year Summary, P60 End of Year Certificate, P38S Students Employed During the Holiday, P35 Employer's Annual Return, P38A Employer's Supplementary Return P38A

• How to complete each form and many valuable tips on year-end procedures

Electronic Filing
• The Government's timetable for compulsory electronic filing of year-end returns, the pros and cons of the different filing methods. Step-by-step instructions from registering through to the completion of year end returns along with P45, P46, CA6855 & P46 (Car).

Advanced Payroll Calculations and Procedures

Money Purchase pension schemes, minimum payments and age-related rebates
Personal Pensions and age-related rebates
Correcting mistakes when deducting tax and NICs
Earnings periods – how they are determined for employees and Directors

Year-end returns P11D P9D

This part of the programme is designed to impart expert knowledge about the completion of P11D returns of expenses and benefits. The objective is to enable employers to avoid the costly penalties and fines that the Inland Revenue can impose for late and incorrect returns.
It is claimed that more incorrect returns are sent to the Inland Revenue each year than correct ones, due mainly to a lack of appreciation of the extent of the information that must be reported for what, in many companies, may be the majority of employees.

We hear the expression “I just didn’t realise it meant that” on this programme more than any of the others that we run. Often the sentiment comes from people who have been completing P11Ds for many years but have had no formal training or have simply not kept up-to-date with the ever-changing legislation.

Learning Objectives

How the UK Tax and NIC system works
• What PAYE is, understanding the key dates in the tax year, paying the Collector of Taxes, the rates of tax and NICs, personal allowances, tax and NIC thresholds, the importance of NI numbers, what NICs rebates are.

Gross Pay
• What gross pay is, how it is calculated, which additions to pay there might be, which deductions from pay are allowed, which items of pay are subject to tax and /or NICs, which elements of pay are treated differently for tax and NICs.

Pay and Earnings Periods
• The effect on tax and NICs when employees are paid weekly, fortnightly, four-weekly and monthly, how to use the tax calendar.

Tax Codes
• What a tax code is, how it is calculated, how it is used, the difference between cumulative and non-cumulative, what week1/month1 means, how the Inland Revenue notifies code changes.

Tax Tables
• How to use Pay Adjustment tables, how to use Taxable Pay tables.

NIC Table Letters
• What is an NIC Table letter, how the correct letter depends on personal circumstances and pension scheme membership, how it is used.

NICs Tables
• How to use the three main NICs tables to calculate NICs, how to select the right table.

New employees
• The importance of forms P45, P46 and P38S in setting up new employees, what needs to be checked on the P45, how to complete these forms.

Leavers
• The forms that need to be completed .

Calculations
• Step-by-step calculations with examples and exercises in preparation of a manual payroll.

The Payslip
• The makeup of a payslip, what has to be entered, who has to be provided with one.

Tax and NICs
• Review of basic tax and NICs calculations, applying the special procedures required when operating K codes, how to use Taxable Pay Tables C & D for calculating higher rate tax, calculating an employer's Class 1 NICs when the earnings of employees exceed the upper earnings limit (UEL), the correct tax and NICs treatment of expenses.Pay-in-lieu-of-notice (PILON) and other payments made when, or after, an employee leaves.

Calculations of Tax and NICs
• Step-by-step advanced calculations with examples, exercises and tutor assistance
· Payment Methods.

• Understanding cash, cheque and direct credit (BACS) payments, their advantages and disadvantages
· Lawful deductions from pay.

• The 'protection of wages' provisions of the Employment Rights Act 1996 (ERA96), and how to avoid problems when recovering overpayments of wages and how to legally recover overpayment of holiday pay from leavers.

National Minimum Wage
• How to ensure compliance for workers who are paid by the hour, by salary, or by commission or piece rates, or none of those. Which workers are covered, and not covered by the Act, and the record keeping requirements.

Working Time Regulations
• The rights of workers and their implications for payroll, compliance with the weekly and nightly working limits, the three key calculations for complying with the paid annual leave rules, which employees and business sectors are excluded, record keeping requirements, and the restrictions on working hours when employing children.

Asylum and Immigration Act
• The simple procedures to avoid penalties (up to £5000) when taking on new employees.

Court Orders
• All of the different types of court order in England and Wales, Scotland and Northern Ireland calculating attachable (arrestable) earnings, calculating Deductions from Earnings Orders (DEO), Attachment of Earnings Orders (AEO), Council Tax Attachment of Earnings Orders (CTAEO), Income Support Deduction Notices (ISDN), Earnings Arrestments (EA), Current Maintenance Arrestments (CMA) and Conjoined Arrestment Orders (CA), determining priorities when more than one order is in force, determining which court orders take priority or suspend Student Loan Deductions, fines and penalties.

Calculations of Court Orders
• Step-by-step calculations with examples and exercises.

Student Loan Deductions
• The two forms can trigger student loan deductions, calculating the deductions using calculator or tables, how to avoid penalties because of non-deduction due to late receipt of P45, when to stop deducting, how to complete a P45 when an employee leaves, reporting requirements.

Statutory Maternity Pay
• Significance of form MATB1, and how to determine the Expected Week of Childbirth (EWC), the Qualifying Week (QW) and the Maternity Pay Period (MPP).

• Entitlement to SMP, including the requirements for notification and medical evidence, length of qualifying service, calculating average earnings, checklists to decide on entitlement or exclusion.

• Other key factors, including early birth, pregnancy-related illness, working for more than one employer, when to start paying SMP, how much SMP to pay, how much to recover and entitlement to Small Employers Relief (SER), recording requirements, fines and penalties.

SMP tables and forms
• Using the E15 Help Book to establish key dates, when and how to complete forms SMP1, SMP2 and SMP3.

Maternity Rights
• Entitlement to and differences between Ordinary Maternity Leave (OML), Compulsory Maternity Leave (CML) and Additional Maternity Leave (AML), notice periods, terms and conditions during periods of leave, returning to work.

• time off for ante-natal care, health and safety assessments, maternity suspension

• Calculation of SMP and Maternity Leave.

• Step-by-step calculations, examples and exercises.

• Checklist of changes to Statutory Maternity Pay and Parental Leave.

• Entitlement, evidence and what 'parental responsibility' means, notice and postponement, effect on terms and conditions, recording requirements.

SPP and SAP tables, forms and calculations

Time off for Dependants
• Handling emergency requests for time off, who is entitled and under what circumstances, who are 'dependants', evidence and recording requirements.

Statutory Sick Pay
• How to determine a Period of Incapacity for Work (PIW), how and when they link together, how to fix Qualifying Days (QD), which days are Waiting Days (WD).

• Entitlement to SSP, the requirements for notifying incapacity, the use of self-certificates and the provision of medical evidence, withholding payment for frequent short absences and obtaining medical advice, calculating average earnings, making decisions on entitlement and exclusion.

• Other key factors, including the calculation of SSP, when it can be recovered using the Percentage Threshold Scheme (PTS), when SMP must be paid instead of SSP, recording requirements, fines and penalties.

• Step-by-step calculations, examples and exercises.

SSP tables and forms
• Using the E14 Help Book to check for PIWs that link, applying linking letters issued by the Benefits Agency to reduce SSP entitlement, when and how to complete forms SSP1, SSP2, SSP33 and SSP1(L).

Year-end Returns
• Step-by-step review of each year-end return, including P14 End of Year Summary, P60 End of Year Certificate, P38S Students Employed During the Holiday, P35 Employer's Annual Return, P38A Employer's Supplementary Return P38A

• How to complete each form and many valuable tips on year-end procedures

Electronic Filing
• The Government's timetable for compulsory electronic filing of year-end returns, the pros and cons of the different filing methods. Step-by-step instructions from registering through to the completion of year end returns along with P45, P46, CA6855 & P46 (Car).

Advanced Payroll Calculations
• Understanding the ‘net pay’ arrangement
• Money Purchase pension schemes, minimum payments and age-related rebates
• Appropriate Personal Pensions and age-related rebates
• Calculating NICs using the exact percentage method
• Gross-to-net checklist and practical exercise

• Payments made after leaving – how should they be treated
• Correcting mistakes when deducting tax and NICs
• Making payments free of tax and NICs
• Employment status for NICs
• Earnings periods – how they are determined for employees and Directors

Earnings for tax and NICs
• Determining the correct tax and NIC treatment – payroll or P11D?
• Understanding how to process reimbursed expenses correctly, especially those where they could be tax-free or not, such as eye-tests and glasses and mileage allowance payments
• Problem areas for Class 1 NICs
• Class 1A NICs and benefits-in-kind
• Class 1B NICs and PSA/TASs
• ESCs and statutory exceptions
• Termination payments – how to determine whether tax and NICs are due
• Notional payments – what are they and how to deal with them

Overview of the P11D
• Timetable and penalties, fines and interest charges
• The use of alternative forms, software and working sheets
• How dispensations, Extra Statutory Concessions (ESCs), Statutory Exemptions, Personal Incidental Expenses (PIEs), PAYE Settlement Agreements (PSAs) and Taxed Award Schemes (TASs), affect completion of the P11D form

Completing the P11D – step-by-step
• Assets transferred (cars, property, goods or other assets)
• Payments made on behalf of employee
• Vouchers or credit cards
• Living accommodation
• Mileage allowance payments (new reporting requirements)
• Cars and car fuel (new reporting requirements)
• Interest-free and low interest loans
• Private medical treatment or insurance
• Qualifying relocation expenses payments and benefits
• Services supplied
• Assets placed at the employee’s disposal
• Shares
• Other items (including subscriptions and professional fees)
• Expenses payments made to, or on behalf of, the employee

Completing the P11D(b)
• Determining the benefits-in-kind that attract Class 1A NICs
• Calculating Class 1A liability
• Understanding what adjustments may need to be made
• Timetable, penalties and payments

Completing the P9D
• Overview of the differences between P11D and P9D
• Which employees require a P9D form

How long will it take?
Twenty-three weeks from start to finish.

What support do I get?
Full study packs are issued to all students and this is supported by:
• access to our dedicated telephone help-desk,
• full online learning programme to pace students through the material.
• online discussion with tutors and fellow students.
• access the online material at home or work is available 24/ 7 to fit in with your own work and home life patterns.

An optional on-line examination is available at week 7.

What will it cost?

This step only will cost £797 (plus VAT).
The optional BTEC/Edexcel examination is £195.

If you were to start from step 1 all the way through to step 3 it will cost £1497 plus VAT.
The optional BTEC/Edexcel examinations are both included in this fee.

The cost to move on to the Professional Supervisor (Certificate in Payroll Management) step 4 programme after completing the course would be an additional £900.

Organisations placing more than one student on a programme can claim discounts for all students.