Level 2 Diploma in Payroll (QCF) 601/0478/8 – Apprenticeship version

Overview

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. Including units on spreadsheets and a more advanced understanding of the knowledge of statutory and non statutory reporting of data

The IAB Level 2 Diploma in Payroll is made up of:

7 – Online Computerised Tests
3 – Paper Assignments
1 – Project
1 – Examination

Click Here to download the Purpose Statement

Who is this qualification for?

The IAB Level 2 Diploma in Payroll is suitable for:

  • Individuals who are aspiring to become professional payroll administrators.
  • Individuals who have achieved the IAB Level 1 Award/Certificate in Payroll or some of the units of 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 Diploma in Payroll is made up of 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

Statutory and non-statutory reporting of payroll data – D5051296 (level 3 – 2 credits)

  • Understand statutory reporting requirements
  • Understand the non-statutory reporting requirements

Spreadsheet software – F5024625 (level 2 – 4 credits)

  • Use a spreadsheet to enter, edit and organise numerical and other data
  • Select and use appropriate formulas and data analysis tools to meet requirements
  • Select and use tools and techniques to present and format spreadsheet information

Work effectively in accounting and finance Y5043973 (level 2 – 5 credits)

  •  Understand the accounting or payroll function within an organisation
  • Be able to use a range of communication skills
  • Work independently or as part of a team
  • Develop skills and knowledge to meet personal and organisational needs
  • Understand ethical values and principles
  • Understand sustainable values

Learning Resources Available

Learning resources for this qualification can be found here

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