IAB Payroll qualifications Penny Randall IAB Chief Payroll

IAB Payroll qualifications Penny Randall IAB Chief Payroll Examiner

IAB PAYROLL QUALIFICATIONS Aims of this presentation: § To review June 2012 and Jan 2013 exams § To cover recent changes to the Payroll Units § To look at possible changes to IAB Payroll Qualifications

IAB PAYROLL QUALIFICATIONS OVERVIEW IAB LEVEL 1 – AWARD IN PAYROLL Knowledge Test § Payroll Preparation – R 600/8794 Assignment – § Processing leavers – D/600/8796 End Exam • • • Making Gross Pay calculations – L/600/8793 Generating an employee record – J/600/8792 Payroll processing –Y/600/8795

IAB PAYROLL QUALIFICATIONS OVERVIEW IAB LEVEL 1 – AWARD IN COMPUTERISED PAYROLL § New qualification introduced in January 2013 § Single unit qualification - Computerised Payroll Administration at Level 1 § Assessment - End Exam only § Available at fixed sittings and on demand

IAB PAYROLL QUALIFICATIONS OVERVIEW IAB LEVEL 1 – AWARD IN COMPUTERISED PAYROLL Key Points: § Setting up of a basic computerised payroll system § Simple payroll transactions § Covers starters and leavers

IAB PAYROLL QUALIFICATIONS OVERVIEW IAB LEVEL 2 CERTIFICATE IN PAYROLL Knowledge Tests § KT 1 - Elements of Gross Pay and Statutory and Non. Statutory Payments & Additions § KT 2 - Composition of an Employee Record and Termination of Employment § KT 3 – Computerised Payroll Theory Assignments Assignment 1 Assignment 2 Calculating Gross Pay Creating an Employee Record Processing leavers

IAB PAYROLL QUALIFICATIONS OVERVIEW IAB LEVEL 2 CERTIFICATE IN PAYROLL End Exam (manual) § Payroll Processing End Exam (computerised) § Computerised Payroll § KT 3 – when taking the Computerised Payroll examination only Project - Work Effectively in Accounting and Finance (if not already completed)

PAYROLL QUALIFICATIONS OVERVIEW Other IAB Level 2 Payroll qualifications currently available: § IAB Level 2 Award in Practical Payroll § IAB Level 2 Award in Applied Payroll § IAB Level 2 Award in Computerised Payroll

IAB PAYROLL QUALIFICATIONS OVERVIEW IAB LEVEL 3 CERTIFICATE IN PAYROLL Knowledge Tests § § Statutory and Non-Statutory Reporting of Payroll Data Termination of Employment Legislation PAYE, Income tax and National Insurance Contributions Assignment 1 Assignment 2 Determining Gross Pay Period End Processing Payroll Verification and Year End

IAB PAYROLL QUALIFICATIONS OVERVIEW IAB LEVEL 3 CERTIFICATE IN PAYROLL End Exam (manual) § Payroll Processing § Termination of Employment End Exam (computerised) § Computerised Payroll Project (if not already completed)

IAB PAYROLL EXAMINATIONS JANUARY 2013 Pass Rates and Areas of Concern

IAB PAYROLL EXAMINATIONS IAB LEVEL 1 AWARD IN PAYROLL � Pass rate for End Exam – JUNE 2012 U 191 U 194 U 195 92% 100% 92% � Pass Overall Passes 79% rate for End Exam - JAN 2013

IAB PAYROLL EXAMINATIONS IAB LEVEL 1 AWARD IN PAYROL § Great improvement on Jan 2012 – pass rate 59% § Still areas of Concern ◦ Accuracy in calculation of Gross Pay 94% pass but only 40% totally accurate. ◦ Dealing with Leavers – accuracy of completing P 45 and entering leaving date on P 11 Working Sheet

IAB PAYROLL EXAMINATIONS IAB LEVEL 2 CERTIFICATE IN PAYROLL Further Areas of Concern § Accurate interpretation of the information given § Preparation of subsequent summary and legislative forms & analysis

IAB PAYROLL EXAMINATIONS IAB LEVEL 3 CERTIFICATE IN PAYROLL § No fixed sitting in January 2013 but will be available for June 2013 § Manual and computerised examinations available on demand

IAB PAYROLL EXAMINATIONS IAB LEVEL 3 CERTIFICATE IN PAYROLL Areas of Concern § Attention to detail and to information given in the paper § Not carrying forward own figures correctly § Not using the correct NIC table for employees with a pension § Not knowing what constituted Gross Pay for

IAB PAYROLL EXAMINATIONS INCOME TAX AND NIC LEGISLATION End Exams JUNE 2013 – Written for Tax Year 2012/2013 Current learners may use Assignments and Knowledge Tests relevant to 2012/13 Assignments and Knowledge Tests New learners from SEPTEMBER 2013 All assessments will use 2013/2014 legislation

IAB PAYROLL EXAMINATIONS JUNE 2013 End Exam - Manual If BASIC PAYE TOOLS KIT not available to candidates the paper can be worked using HMRC Calculators which will calculate in the current tax year 2013/2014 Candidates will not be penalised but just write a note on the front of their papers to that effect

IAB PAYROLL QUALIFICATIONS Real Time Information § Introduced by HMRC for all employers 6 th April 2013 § Demise of manual payroll as a general method of payroll processing § Full emphasis on processing by computer § Changes to HMRC Basic PAYE Tools – further small changes to come - expected end of May

IAB PAYROLL QUALIFICATIONS Real Time Information (RTI) § Review of current Payroll Units to include changes for RTI § Will mean some changes at all Levels of IAB qualifications § Some changes to assessments

IAB PAYROLL QUALIFICATIONS Changes to Payroll Units - Level 1 § Basic treatment of starters, leavers and preparation of employee records for RTI § Be able to use the Basic PAYE Tools § Basic understanding of RTI requirements

IAB PAYROLL QUALIFICATIONS Changes to Payroll Units - Level 2 § Full understanding of the changes in treatment of starters, leavers and preparation of employee records § Be able to use the Basic PAYE Tools § Further understanding of RTI requirements

IAB PAYROLL QUALIFICATIONS Changes to Payroll Units - Level 3 § Fuller understanding of RTI requirements and implications of non-compliance § Changes to year end procedures

IAB PAYROLL QUALIFICATIONS § Need for changes to IAB qualifications due to the introduction of Real Time Information § IAB looking at ways to test use of Basic PAYE Tools and maintain practical testing of some manual aspects of processing the payroll § Demise of manual payroll as a general method of payroll processing. No further use of P 11 Deduction Sheets.

IAB PAYROLL QUALIFICATIONS § Still need for underpinning manual knowledge and skills § IAB looking to maintain short course of Computerised Payroll qualifications at Levels 1 – 3 but looking to also include testing of underpinning knowledge at all Levels § Practical assessment of Calculating Gross Pay at all Levels

IAB PAYROLL QUALIFICATIONS The Way Forward § IAB to agree final composition of all Payroll Qualifications in May. § Further information on syllabus of all qualifications to Centres and Tutors as soon as possible from May § Possible additional workshop

IAB PAYROLL QUALIFICATIONS Assessment § Current on demand papers available until 31 st August § Sample Assessment Material to be produced – by end June 2013 § Live assessment material from September 2013

IAB PAYROLL QUALIFICATIONS We appreciate that this is yet another time of great change. Thank you for your support and understanding Any questions and Thank you for listening.