Course Overview
This course is designed to give learners a comprehensive understanding of payroll processes in the UK. It covers the Pay As You Earn (PAYE) system, how to use professional payroll software, and other key payroll functions such as sick pay, holiday pay, pension auto-enrolment, and Real-Time Information (RTI) submissions. Learners will also be introduced to HMRC calculators and the process of registering clients for the PAYE scheme.
Learning Objectives
By the end of this course, learners should be able to:
- Understand how the PAYE system works in the UK.
- Retrieve and apply relevant rates and information from HMRC.
- Use HMRC calculators and professional payroll software for payroll tasks.
- Input employee data into payroll systems and generate accurate payslips.
- Calculate statutory payments such as sick pay, SMP, and SPP.
- Accurately compute holiday pay and ensure compliance with legal requirements.
- Submit payroll data to HMRC using Real-Time Information (RTI).
- Prepare bank files for online bank transfers of payroll.
- Set up and manage pension auto-enrolment for employees.
- Make payroll journals for inclusion in financial statements.
- Register clients for the PAYE scheme with HMRC.
Module Content
- How PAYE System Works in the UK
- Overview of the PAYE system and its role in tax collection.
- How tax codes work and how they affect payroll.
- National Insurance Contributions (NICs) and tax bands.
- Introduction to emergency tax codes and adjustments.
- Retrieving and Applying Relevant Rates from HMRC
- How to access and apply current PAYE tax rates and NICs from HMRC.
- Importance of staying updated with HMRC regulations.
- Use of HMRC calculators for accurate payroll calculations.
- Using HMRC Calculators and Payroll Software
- Introduction to HMRC’s payroll calculators.
- Overview of professional payroll software (e.g., Sage Payroll, QuickBooks, Xero).
- Key features of payroll software (employee data, tax calculations, NICs).
- Real-life examples of using payroll software to manage weekly and monthly payrolls.
- Inserting Employee Data into Payroll Software
- Setting up employee profiles in payroll software.
- Entering personal information, tax codes, salary, and benefits.
- Managing employee records for part-time, full-time, and contract workers.
- Preparing Weekly and Monthly Payroll and Payslips
- Calculating weekly and monthly payroll for employees.
- Preparing and distributing payslips.
- Handling multiple pay frequencies in payroll systems.
- Sick Pay, Statutory Maternity Pay (SMP), and Statutory Paternity Pay (SPP)
- Understanding the requirements and eligibility for statutory payments.
- How to calculate sick pay, SMP, and SPP.
- Legal requirements for statutory payments and how they affect payroll.
- Holiday Pay Calculations
- Requirements for holiday pay in the UK.
- How to calculate holiday pay for full-time, part-time, and casual workers.
- Managing holiday accrual and carry-forward rules.
- Real-Time Information (RTI) Submissions
- What is RTI and why it is essential for payroll compliance.
- Step-by-step guide on how to submit payroll data to HMRC via RTI.
- Troubleshooting common issues with RTI submissions.
- Preparing Bank Files for Online Transfers
- Generating a payroll bank file from payroll software.
- Preparing bank transfers for employee salaries.
- Introduction to BACS payments for payroll.
- Pension Auto Enrolment Setup
- Requirements for pension auto-enrolment in the UK.
- Setting up auto-enrolment in payroll software.
- Understanding employer and employee contribution rates.
- Reporting pension contributions to HMRC and pension providers.
- Payroll Journals for Financial Statements
- Understanding payroll journals and how they fit into financial statements.
- Creating and posting payroll journals.
- Reconciling payroll with general ledger accounts.
- Registering a Client for PAYE Scheme
- How to register a business for PAYE with HMRC.
- Key information required for PAYE registration.
- Managing PAYE scheme administration for new clients.
Final Assessment
- Scenario-based exercises on payroll processing.
- Practical tasks using payroll software.
- Multiple-choice quizzes on PAYE, statutory payments, holiday pay, and RTI.
