1. Penny Randall IAB Chief Payroll Examiner
IAB Payroll qualifications
IAB Payroll qualifications
Penny Randall IAB Chief Payroll Examiner

2. 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

3. IAB PAYROLL QUALIFICATIONS OVERVIEW
IAB LEVEL 1 – AWARD IN PAYROLL
Knowledge Test
Payroll Preparation – R600/8794
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

4. 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

5. 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

6. IAB PAYROLL QUALIFICATIONS OVERVIEW
IAB LEVEL 2 CERTIFICATE IN PAYROLL
Knowledge Tests
KT1 - Elements of Gross Pay and Statutory and Non-Statutory Payments & Additions
KT2 - Composition of an Employee Record and Termination of Employment
KT3 – Computerised Payroll Theory
Assignments
Assignment 1 Calculating Gross Pay
Assignment 2 Creating an Employee Record
Processing leavers

7. 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)

8. 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

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

10. 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)

11. IAB PAYROLL EXAMINATIONS
JANUARY 2013 Pass Rates and Areas of Concern

12. IAB PAYROLL EXAMINATIONS
IAB LEVEL 1 AWARD IN PAYROLL
Pass rate for End Exam – JUNE 2012
Pass rate for End Exam - JAN 2013
U192
U191
U194
U195
Overall Passes
92%
100%
79%

13. 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 P45 and entering leaving date on P11 Working Sheet

14. 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

15. 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

16. 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 Income Tax
Not knowing what constituted Gross Pay for NIC

17. 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

18. 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

19. IAB PAYROLL QUALIFICATIONS
Real Time Information
Introduced by HMRC for all employers 6th 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

20. 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

21. 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

22. 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

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

24. 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 P11 Deduction Sheets.

25. 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

26. 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

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

28. 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.