01798 861111
Login
2 day£1321 +VAT
View course content

An introduction to the calculation of pay and deductions

This concentrated two-day programme combines the essential elements from our popular Payroll Techniques course to enable you to understand the core requirements of:

  • UK tax and NICs system
  • Maternity and paternity pay and leave legislation
  • Statutory Sick Pay legislation
  • Court Order legislation

Our tutors use an easy, step-by-step approach, so you learn by example. You’ll be shown how to use tax and NIC tables, how to complete the different forms and processes for employees who are starting or leaving employment, and how to handle the regular payments and deductions required.

Subsequently complete the optional exams and you will be awarded the Payroll Centre Payroll Assistant Certificate in Basic Payroll Competence.

Courses Overview

Duration: 2 day Price: £1321+VAT CPD: 12 hours (certificated)

Who will it benefit?

This payroll training course is ideal if you work in payroll or HR and have little or no experience of current UK payroll practice and require a fast track to a basic understanding of how to manage payroll calculations and deductions.

It would be especially useful if you are new to the role, returning after a break or just providing absence cover or you need to provide advice to colleagues.

What you'll achieve?

By the end of the course you will receive a solid practical foundation in the basics of calculating pay and the required deductions, understanding statutory pay and leave, and how to manage starters and leavers.

Using examples and simple tests during the day you will understand how to build up deductions and how to complete a simple payslip.

Course Content

This payroll training course covers everything you need to be able to calculate and deduct Tax and National Insurance from employees, adapt to different scenarios, such as starters and leavers, and create a payslip for a member of staff.

The course includes a number of working examples and integrated tests to assist the attendees learning experience.

Click for course details

Day 1

How the UK tax and NI system works

  • Rates of tax and NI
  • Personal allowances
  • Tax and NI thresholds
  • Importance of NI numbers.
  • The effect on tax and NI when employees are paid weekly, fortnightly, four-weekly and monthly and how to use the tax calendar correctly
  • What gross pay is and what additions to pay there might be
  • What deductions from pay are allowed before tax
  • What elements of pay are treated differently for tax and NI
  • Pay and earning periods

Calculation of tax

  • What a tax code is and how it is derived
  • The difference between a cumulative and non-cumulative basis (week1/month1)
  • How HMRC notifies tax code changes
  • How to calculate the pay adjustment
  • How to calculate tax

Calculation of National Insurance

  • What an NI table letter is, how it is derived and its impact on the calculation of NIC
  • NI for employees
  • Not yet 16
  • Under 21
  • Apprentices under 25
  • Over state pension age
  • How to calculate NI using the exact percentage and comparing to HMRC table methods

New employees and leavers

  • Dealing with starters and leavers
  • P45s
  • Starter Declarations

Calculations

  • Step-by-step calculations of tax and NI with examples and exercises
  • Preparation of a manual payroll calculations with tutor assistance
  • The makeup of a payslip
  • What has to be entered in order to meet legal requirements

Day 2

Statutory Maternity Pay

  • Form MATB1, and key dates for entitlement
  • Requirements for notification, qualifying service, and calculating average earnings,
  • Other key factors, including early birth, pregnancy-related illness, working for more than one employer, when to start paying SMP, how much SMP to pay, how much to recover, fines and penalties
  • Understanding the notice requirements
  • When and how to complete form SMP1

Maternity Rights and the Calculation of SMP and Maternity Leave

  • Entitlement to and differences between Ordinary Maternity Leave (OML), and Additional Maternity Leave (AML), notice periods, terms and conditions during leave, returning to work
  • Step-by-step calculations, examples and exercises, with tutor assistance

Statutory Paternity Pay and Leave

  • How to determine the key dates
  • Entitlement to SPP, the requirements for notification, qualifying service, calculating average earnings
  • Other key factors, when SSP overrides SPP, early birth, working for another employer, when to start paying SPP, how much SPP to pay, Forms SPP1 and self certificates

Statutory Sick Pay

  • How to determine a Period of Incapacity for Work (PIW), how they link, how to fix Qualifying Days (QD) and which days are Waiting Days (WD)
  • The use of self-certificates and the provision of medical evidence, calculating average earnings, making decisions on entitlement and exclusion

Court Orders and Student Loans

  • An introduction to the basics of Court Orders including:
  • Child Support
  • Council Tax AEOs
  • 1971 AEOs - priority and non-priority
  • An introduction into the operation of Student Loans
  • Starting deductions
  • Calculation method
  • Stopping deductions

"When setting up a Shared Service Centre, The Learn Centre played a key role in our award winning Payroll Academy, delivering a blended learning experience combining both classroom based training and an e-learning solution. The course delivery, the training materials and overall learning experience was excellent."

Michael Stevenson
Payroll Manager at Queen's University Belfast

View on Linkedin

2 day£1321+VAT
Reserve place Get a call back