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This course would also suit those in HR and finance roles who require a more detailed understanding of the mechanics of PAYE and NICs than taught on the payroll for non-payroll professionals course.

This course has been developed to be delivered completely online, as such the one day content will be delivered across two consecutive half days. Materials will be released in advance of the course, and will be available to you through the CIPP online learning platform.

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Why you should attend

PAYE income tax and National Insurance Contributions are the largest source of remittances all employers must accurately deduct and forward to HMRC on time. Calculating these correctly is a fundamental skill for all in payroll.

Beginning with calculating gross pay and establishing the different categories of deductions, this course moves to cover in-depth the rates, thresholds and methodologies for manually calculate income tax and NICs using both manual and table methods. By the end of the day, you will be able to perform a gross to net calculation, understand the extra considerations required for calculating pay for starters and leavers and the information required on a pay statement.

This course forms part of the face-to-face delivery option for the Payroll Technician Certificate. But can also be attended as a stand-alone course.

The course is suitable for delegates that have the following suggested roles:

  • Payroll administrators
  • Payroll co-ordinators
  • HR administrators
  • HR co-ordinators
  • Payroll supervisors

And you may be working in either:

  • A payroll bureau
  • Accountancy firm
  • In-house payroll team

What you will learn

To equip you with the knowledge and skills to calculate PAYE income tax and National Insurance Contributions correctly.

  • Calculate gross income
  • Calculate PAYE and NIC liabilities
  • Handle payments for starters and leavers correctly
  • Sequence the required calculations correctly
  • Outline the correct process for systems output
  • Calculate net pay

Course content

Ascertaining gross pay

  • Classifying taxable and NICable pay elements
  • Calculating pay apportionments correctly

Processing deductions

  • Ascertaining what makes a deduction from pay lawful
  • Classifying the three types of deductions
  • Distinguishing deductions which affect taxable & NICable pay
  • Overview of tax relief methods for pension contributions

           National Insurance Categories

  • Listing the NI category letters currently in use
  • Identifying the correct NI category letter for employees
  • Awareness of proof required to apply certain category letters

           Calculating National Insurance Contributions

  • Recognising the names and current amounts of NIC thresholds
  • Listing the current rates of NICs for each category letter
  • Calculating NICs using the Exact Percentage method
  • Calculating NICs using the Table method

           Identifying different tax codes

  • Identifying circumstances which warrant “emergency tax codes”
  • Categorising different tax codes
  • Distinguishing Scottish tax codes

           Calculating income tax

  • Identifying the different allowances available
  • Navigating through Pay Adjustment Table A
  • Calculating income tax using the table method
  • Calculating income tax using the manual method
  • Awareness of circumstances where tax refunds may be processed

Completing gross to net calculations

  • Identifying the correct order to calculating gross to net figures
  • Performing gross to net calculations

Awareness of payslip obligations

  • Awareness of deadlines and eligibility for a payslip
  • Outlining the minimum information required on payslips

Processing starters and leavers

  • Mistimed payments for starters and leavers
  • Payments after leaving

Prior learning required

So that you can get full benefit from the subjects in this course, we recommend that you have attended the following:

Payroll for Non-Payroll Professionals

This course clarifies the role of payroll and the mutual needs and expectations between it and other departments such as HR, finance and IT. Delegates are then provided a broad overview of the mechanics of payroll including income tax, NICs, statutory payments, student loans and the provision of minimum wage.

Continuing your learning

Introduction to Statutory Payments

Covering in detail the core statutory payments (SSP, SMP, SAP & SPP) as well as introducing Shared Parental Leave & Pay, completing this course will further a payroll administrator’s essential skill set

Essential Additions to Payroll Basics

This course directly follows from this syllabus to cover a broad range of other subjects which all payroll administrators must competently grasp such as Student Loan Deductions, Court Orders, Auto-Enrolment, Real-Time Information, Year-End obligations and an introduction to Director’s NICs

Revision: Calculating a Payslip

This course is designed to use your existing knowledge and pull together all calculations that result in a complete payslip. You will do this by recapping basic manual payroll calculations, data gathering, and payslip production.