Overview
Assessment Guidance
Assignment or end examination.
Unit Learning Outcomes
1
Be able to use HMRC approved tools to calculate income tax.
Assessment Criteria
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1.1
Apply the tax code for an employee from given information.
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1.2
Process pre-tax deductions correctly.
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1.3
Process accurately a variety of Tax Codes using HMRC approved tools :
• standard suffix codes operated on a cumulative or non-cumulative basis
• BR code operated on a cumulative basis.
• NT
• 0T
• D0
• D1
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1.4
Identify the authority required to change an employee’s tax code and process the change accurately.
2
Be able to determine national insurance contributions to be deducted from gross pay.
Assessment Criteria
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2.1
Process accurately for NI categories A, C and D, using approved HMRC Tools:
• employee NI contributions
• employer NI Contributions
3
Be able to determine voluntary deductions and non-standard statutory deductions.
Assessment Criteria
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3.1
Process voluntary deductions in an appropriate way.
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3.2
Process other statutory deductions:
• Deductions from earnings orders
• Scottish arrestment orders
• Student loan repayments
4
Be able to produce relevant pay period reports.
Assessment Criteria
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4.1
Produce a P11 or equivalent.
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4.2
Produce payslips or equivalent, to detail statutory, non-statutory and organisational information regarding employees’ individual pay.
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4.3
Produce payment schedules for different methods of making payments to employees.
5
Be able to record and reconcile payments and deductions to employees and external agencies.
Assessment Criteria
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5.1
Produce an internal payroll summary to record and itemise payments and deductions, including employer’s NIC.
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5.2
Reconcile payments and deductions made from employees pay with the total payroll.
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5.3
Prepare Employer Payment Summaries in line with the tax authority’s requirements.