This course covers the statutory framework for payrolling benefits, highlighting the implications and opportunities, as well as the tax and National Insurance contributions (NICs) treatment of expenses and Benefits In Kind (BIK).

Please note: Materials for this course will be made available via an online platform, however a selection of this materials will need to be printed off and brought with you on the day.

Login details for the online platform will be sent to you ten days before the course start date.

If you have any problems or questions, please email admin@cipp.org.uk.


Why you should attend

The option to process benefits-in-kind through the payroll is becoming increasingly popular with employers.

 

This course provides the opportunity to comprehend the mechanics of payrolling benefits, the steps to incorporating it to their payroll practices and handling more complicated circumstances in this field. Updates on various fields of benefits and expenses are also covered.

 

This course is primarily aimed at those considering on implementing this initiative, but with also benefit those working in organisations who already payroll benefits

 

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

  • Payroll coordinators
  • Payroll supervisors
  • Payroll managers
  • Finance managers
  • Reward managers

What you will learn

To provide delegates with an update on relevant changes to tax calculations of benefit and expense and a comprehensive appreciation of the framework for payrolling of benefits to facilitate a smooth introduction and management of payrolled benefits in their organisations.

 

  • Understand the statutory framework for voluntary payrolling benefits and expenses
  • Be aware of the tax and NICs changes for optional remuneration arrangements in April 2017
  • Be able to review and update existing policies

Course content

Outline the rules on statutory exemptions for business expenses

  • Distinguish between the recently abolished dispensations and current exemptions
  • Identify scale rates and bespoke scale rates

Administer PAYE Settlement Agreements (PSAs)

  • Outline the current PSA process
  • Calculating the grossed-up tax & Class 1B NICs due from PSAs
  • Appreciate the current and future developments with PSA administration

Identify statutory exemptions

  • Identify benefits exempt from tax & NICs
  • Distinguish Extra-Statutory Concessions from other benefits
  • Appreciate the conditions require for a benefit to constitute a trivial benefit

Summarise salary sacrifice & Optional Remuneration Arrangements (OpRA)

  • Review salary sacrifice arrangements
  • Classify Type A & Type B OpRAs
  • Appreciate the interaction between OpRAs and payrolling of benefits

Explaining the payrolling of benefits

  • Summarising the principles of payrolling benefits
  • Identifying the changes to payrolling of benefits from April 2016

Establish the implementation process for payrolling of benefits

  • Outline the registration process for payrolling of benefits
  • Identifying the appropriate benefits to payroll
  • Identifying employees suitable to have benefits payrolled
  • Appreciate the payrolled benefit details to record on payslips

Summarise further considerations for payrolled benefits.

  • Linking “making good” payments into payrolled benefits
  • Solving errors with payrolled benefit figures reported
  • Administer leavers with payrolled benefits

Prior learning required

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

Introduction to PAYE & NICs

A working knowledge of PAYE & NICs is the central skillset that all payrollers must master. This course covers in-depth the rules for calculating both statutory deductions as well as the principles of processing starters and leavers correctly. Delegates leave the course with the ability to calculate gross to net pay manually.

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.

Or

Introduction to Payroll

Designed for those new to payroll, this comprehensive course covers the core skills required to administer the payroll function. From calculating gross pay and deciphering the differences between taxable and NICable pay, the course covers in-depth the methodologies for manually calculating income tax, NICs and Student Loan Deductions as well as an overview of other core payroll principles, including auto-enrolment, court orders and remittance reconciliations.

And

Introduction to Statutory Payments

Covering in detail the core statutory payments as well as introducing Shared Parental Leave & Pay, completing this course will complete a payroll administrator’s essential skill set.

Continuing your learning

P11Ds, Expenses & Benefits

Designed for those delegates in payroll or finance who are also charged with administering the expenses and benefits provided to employees. This course negotiates the complex tax and NIC rules for a range of benefits in kind, travel & subsistence, other expenses and the completion of forms P11D and P11Db. Also included are the principles of grossing up, PSAs, TAS’s and Extra-Statutory Concessions.

Creating a Payroll Procedures Manual

Organisations undertaking payrolling of benefits would need to incorporate new processes into their procedural documentation.

This course covers the theory and practicalities that need to be considered when designing a procedures document that all payroll departments need to ensure all statutory and contractual obligations are managed efficiently and professionally.

Salary Sacrifice and Optional remuneration arrangements

Payroller benefits are often offered through either a salary sacrifice scheme, or flexible benefits package. This course explains the legal and payroll related implications of salary sacrifice schemes and other optional remuneration arrangements. Using examples, it examines what makes a successful salary sacrifice arrangement, covers the payroll processing and reporting implications, and highlights the potential impact on state benefit entitlements.