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ICB Level 3 - Diploma in Payroll Management
Learn About Payroll Management
Our apologies. The ICB Syllabus for this course is currently being updated and cannot be purchased at this time. If you would like to be informed when it's available again, please complete our Contact Form. We will be in touch when the new course is up and running.
New ICB Syllabus - This is a stand alone specialist course that can be undertaken without any previous bookkeeeping expereince. It is a qualification that has been specifically designed to to help those who want a career in Payroll Accounting. The Diploma in Payroll Management covers the theoretical knowledge and demonstration of the use of various tables and publications issued by HMRC and the demonstration of how to carry out computerised handling of payroll related matters.
Employment Opportunities: Payroll departments and accountancy firms. Self - Employed Payroll Specialists.
Entry-Requirements/ Pre requisites
No prior bookkeeping knowledge or qualifications are required but candidates must have basic numeracy skills. Candidates must: hold valid student registration or hold valid AICB, MICB or FICB status
Assessment Type: Home-based assessment (non-timed). Two week deadline.
Immediate availability every week of the year
This qualification covers the theoretical knowledge and demonstration of the use of various tables and publications issued by HMRC and the demonstration of how to carry out computerised handling of payroll related matters. Students must be able to demonstrate their ability to understand and carry out processing of the areas of the syllabus.
- Course lessons
- Sage Instant Payroll software, all courseware, workbooks and software where applicable
- HMRC Employees Payroll CD and PII Deduction Tables
- Exam practices
- One ICB Mock Exam online download
- Assessment fee (examination fee)
- Access to learning resources
- Unlimited Tutor support – vital to your success
- ICB Student Registration £46.50:- (includes first 12 months membership of the ICB)
There are no hidden costs.
Please note: SAGEOne Payroll software is a new entirely online software that the student purchases for themselves (allow approxiametly £60). Cost is approximately £5.00 a month for 12 months.
Duration: 200 hours - Students who have had previous Payroll bookkeeping experience will be able to complete the course in less time.
All course material follows the New 2014 ICB syallabus
1. Demonstrate knowledge and understanding of the theory of payroll
- Demonstrate a basic understanding of the law relating to payroll, discrimination, employment status,
data protection and confidentiality.
- Understand and explain the legislation for PAYE and National Insurance Contributions (NICs)
- Understand and explain the requirements of the Working Time Directive
- Demonstrate an understanding of the Statutory Minimum Wage
- Demonstrate an awareness of the legislation concerning the provision of a pension scheme and the
different types of pension schemes together with the effect they may have on PAYE and NI deductions
- Demonstrate understanding of the schedule of submissions to HMRC under the "Real Time Information" (RTI) scheme
- Understand how a business may receive recompense for statutory payments including the effect of
Small Employer's Relief and when this may be applied
- Understand what information must be submitted to HMRC and the relevant deadlines that apply
2. Demonstrate knowledge and understanding of, and be able to calculate, the various
payments that can make up an employee's gross Pay
- Calculate the correct gross pay for each pay period for employees who are paid an annual salary,
weekly wage, hourly pay, overtime, piecework and bonuses including statutory payments when appropriate
- Understand and explain statutory payments of sickness, maternity, paternity and adoption pay
- Understand the procedures to use when an employee is paid in advance for a period to be taken as paid holiday
3. Show knowledge and understanding of, and be able to calculate through the use of tables
the amount of National Insurance Contributions that will be deducted from gross pay
- Understand and explain the difference between contracted in and contracted out NI contributions
- Use appropriate tables to determine the NI contributions for a gross pay figure
- Using the current legislation, calculate the NI contributions
- Be able to correctly calculate the NICs for an employee being paid for periods (such as holidays) in advance
4. Show knowledge and understanding of the concept of PAYE, together with the use of tax
codes to correctly calculate the amount of PAYE to be deducted in a given period
- Understand how tax codes are calculated and applied
- Given a tax code to be applied, be able to calculate the amount of free pay that an employee may earn in any given period
- Determine the amount of pay that is taxable for an employee with a given tax code
- Determine the correct amount of PAYE to be deducted for a given period
- Calculate the amount of PAYE to be deducted when an employee is being paid in advance
- Understand how to deal with notifications of change in tax code issued by HMRC (Forms P6 and P9)
5. Show knowledge and understanding of other statutory deductions that can be applied
to an employee's pay
- Demonstrate understanding of the process used to repay student loans
- Determine the correct deduction towards repayment of a student loan
- Understand when and how an attachment of earnings may be used
- Demonstrate understanding of the requirement for directors NI deductions to be treated differently from ordinary employees
- Correctly calculate the NI deductions for directors using the "non Cumulative" ("Alternative" or "Table method") and the "Cumulative Director method"
7. Benefits in Kind (BIK)
- Understand the concept of BIK and the impact it has on an employee's pay and their employer's costs
- Calculate the appropriate costs and deductions when an employee is provided with the following benefits by their
employer: company car, private fuel, loan, private health insurance, other common basic benefits assuming all
required details are provided
- Understand how to complete forms P11D, P11D(b) and P9D with details relating to the above benefits and the
deadlines by which they must be submitted
8. Construction Industry Scheme
- Understand and explain the basic principles behind the Construction Industry Scheme (CIS).
- Understand the duties of a contractor to verify sub-contractors
- Correctly calculate the amount of tax to be deducted if applicable
- Understand how to make appropriate adjustments to payments to HMRC for CIS tax
- Accurately complete a CIS300 form at month-end for a contractor business in the construction industry
- Accurately complete a CIS132 form at month-end for a subcontractor business in the construction industry
- Understand the duties of a sub-contractor to submit relevant invoices within appropriate timescales
- Explain why tax may be deducted at source from such an invoice
- Understand the different methods of reclaiming tax deducted depending on the legal entity of the
business (ie sole trader v limited company)
9. Understand and be able to complete the various forms that apply to a business running
a payroll system
- Understand when and how to complete a P45 form and where each part should be sent / stored
- Demonstrate an understanding of how a P46 (starter checklist) form is completed and used
- Demonstrate an understanding of the use of form P11 with payments and deductions for directors
and regular employees on various payment schedules, statutory requirements and with differing tax codes
including when payments are being made in advance
- Accurately complete a P60 form at year-end for each employee
- Demonstrate an awareness of all other relevant payroll forms.
10. Demonstrate practical skills in the application of a payroll software package
- Utilising knowledge of the theory of payroll, demonstrate a full understanding of a sophisticated payroll package
by installing, setting up, configuring and using it to produce accurate, comprehensive reports from a range of
payroll scenarios encountered in a business of up to 10 employees.
- Set up the details of a new business including appropriate company and existing employee details. Some existing
or new employees may be directors who undertake to have their NI deducted using different methods or employees
who work irregular hours. Enter and process payroll for a variety of different pay periods and produce reports detailing
gross pay, deductions and net pay for each period
- To adequately secure the business' payroll data, carry out periodic back-ups of payroll-related information.
- Produce summary reports for defined periods
- Perform the necessary actions within the software to handle an employee leaving and produce the required documentation
- Configure a new employee within the software according to information provided
- Where possible, carry out or simulate a month end procedure under RTI and produce a number of required reports
including potential adjustments resulting from CIS deductions and any other recoverable amounts.