This qualification develops skills in payroll record keeping and processing, giving candidates the necessary skills to record financial payroll transactions, in a both a manual and computerised environment.
6 – Online Computerised Tests
The IAB Level 2 Certificate in Payroll is made up of:
6 – Online Computerised Tests
2 – Paper Assignments
1 – Examination
Who is this qualification for?
The IAB Level 2 Certificate in Payroll is suitable for:
- Individuals aspiring to become professional payroll administrators.
- Individuals who have achieved the IAB Level 1 Award/Certificate in Payroll or some of the units within these qualifications
- Individuals who are new to working in payroll but have some previous general knowledge of payroll procedures.
- Individuals who now wish to increase their skills and knowledge to that required of payroll processors prior to employment.
- Individuals who have previously worked in payroll and have not received a qualification.
- Individuals who wish to return to working in payroll and need to update their knowledge.
- Individuals who are already employed in payroll processing or allied roles and who wish to ensure that they have both a firm foundation and the knowledge and skills to perform some non-routine tasks.
What you’ll study
The IAB Level 2 Certificate in Payroll contains the following units:
Fundamentals of employment legislation for payroll – F5051274 (level 2 – 2 credit)
- Know what payroll information is to be prepared and kept by law
- Understand data protection legislation in relation to payroll
- Know the general principles of employment rights legislation
Composition of an employee payroll record – Y5051233 (level 2 – 2 credits)
- Know the information required to set up a payroll record for a new employee
- Know how to complete a P11 deduction sheet or equivalent, for a new employee
- Know how to deal with income tax forms for a new employee
- Understand the procedure for aligning employer data with HMRC records
Elements of gross pay – K5051236 (level 2 – 2 credits)
- Understand what constitutes basic pay for different payroll periods
- Understand the principles of calculating overtime payments
- Know what constitutes gross pay from additional payments
- Understand the need and procedures to make temporary and permanent changes to rates of pay
Statutory and non-statutory payments and additions – M5051254 (level 2 – 3 credits)
- Understand the principles of the PAYE system.
- Understand the principles of the National Insurance system.
- Understand the principles of Student Loan deductions.
- Understand the principles of Statutory Sick Pay (SSP).
- Understand the principles of Statutory Maternity Pay (SMP).
- Understand the principles of Statutory Adoption Pay (SAP).
- Understand the principles of Statutory Paternity Pay (SPP and SPP(A)).
- Understand the principles of Attachment of Earnings Orders (AOE).
- Understand the need to complete period end payroll procedures
Termination of employment – F5051243 (level 2 – 1 credit)
- Understand what constitutes a leaver.
- Know the amendments to make to a leaver’s final pay
Calculate gross pay – H5051235 (level 2 – 3 credits)
- Be able to determine basic pay for different payroll periods
- Be able to calculate overtime payable from given information
- Be able to calculate additional payments from given information
- Be able to implement permanent changes to rates of pay from given organisational information
- Be able to implement relevant statutory additions to pay when entitlement has been determined
Creating an employee payroll record – L5051228 (level 2 – 1 credit)
- Be able to prepare a payroll record for a new employee
- Be able to complete relevant statutory forms for a new employee
Processing leavers – T5051241 (level 2 – 1 credit)
- Be able to calculate the gross pay for a leaver
- Be able to complete internal procedures and those necessary for external agencies and statutory bodies, for a leaver
Payroll processing – T5051238 (level 2 – 5 credit)
- Be able to use HMRC approved tools to calculate income tax
- Be able to determine national insurance contributions to be deducted from gross pay
- Be able to determine voluntary deductions and non-standard statutory deductions
- Be able to produce relevant pay period reports
- Be able to record and reconcile payments and deductions to employees and external agencies
Computerised payroll theory – L5051276 (level 2 – 2 credits)
- Understand potential health and safety and security risks
- Maintain the security of data within a computerised environment
- Understand organisational procedures for processing payroll in a computerised environment
- Understand the statutory requirements for submitting information
Computerised payroll skills – Y5051278 (level 2 – 4 credits)
- Be able to process information on starters, leavers and changes to current employees
- Be able to process payroll accurately on a pay period basis
- Be able to back up and update systems when required
Learning Resources Available
The Level 2 Payroll book covers manual element of this qualification, and can be bought here
Upon successful completion of this qualification you could move onto one of the following:
- Level 3 Certificate in Payroll Administration 601/9047/4
- Level 3 Certificate in Computerised Payroll Administration 601/9048/6
- Apply for professional membership at the grade of Associate