Maintaining Employee Records
Unit summary
This unit is about setting up and amending basic employee records within a computerised payroll administration system. Throughout the unit you need to show that you maintain confidentiality of employees’ personal details and that you meet organisational and statutory deadlines.The first learning outcome requires you to input new employees’ personal data as well as the termination dates of employees who are leaving. You need to show that you input only those details that have been properly authorised, and that you know whether or not particular details are required by statute.The second learning outcome is concerned with the implementation of instructions from external agencies such as HM Revenue and Customs and trades unions. You need to show that you verify all such instructions and obtain employees’ authorisation for non-statutory deductions. You also need to show that you identify discrepancies in instructions and resolve them either directly or by referring them to the appropriate person.The final learning outcome requires you to process permanent changes that your organisation requires you to make to individual employees’ payroll records, such as increases in their basic rate of pay. You need to show that you identify inaccurate or unusual instructions and query these promptly with the right person, as well as inputting data to the payroll system accurately.
Unit details
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15 Business, Administration and Law
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15.1
Accounting and Finance
Assessment Methodology: Workplace evidence or workbased case study/simulation
You must have knowledge and understanding of:
The Statutory framework
1. Income tax and national insurance legislation affecting:
• Starters and leavers(LO 71.1)
• Tax code changes (LO 71.2)
• Student Loan Deductions (LO 71.2)
• Tax Credits (LO 71.2)
• National Insurance category letters (LOs 71.1, 71.2)
2. Employment Rights legislation (LOs 71.1, 71.2, 71.3)
3. Data Protection legislation (LO 71.1)
4. Asylum and Immigration legislation (LO 71.1)
5. Legislation relating to attachments of earnings
The Organisation
6. Procedures for keeping data confidential and secure (LOs 71.1, 71.2, 71.3)
7. Dealing with instructions from external agencies (71.2)
8. Who to refer discrepancies to (LOs 71.1, 71.2, 71.3)
9. How to record and store data (LO 71.1, 71.2, 71.3)
10. Types of information input from external agencies (LO 71.2)
11. Signatories and authorisations (LO 71.1, 71.2, 71.3)
12. Timescales and schedules for updating, presenting and despatching data (LOs 71.1, 71.2, 71.3)
13. Information flows within the organisation (LOs 71.1, 71.2, 71.3).
Unit 71 of the AOSG Level 2 in Payroll Administration
FSSC has formally supported this unit (please see letter of support attached in the qualification need/support section)
| Learning Outcome |
Assessment Criteria |
| 71.1 Verify and process personal data for starters and leavers |
71.1.A Ensure properly authorised evidence of appointment is obtained before payroll is amended
71.1.B Ensure form P45 is obtained before payroll is amended
71.1.C Ensure form P46, when applicable, is obtained before payroll is amended
71.1.D Ensure properly authorised form P38S is obtained for every appointment where applicable before payroll is amended
71.1.E Ensure properly authorised certificates of reduced liability and age are obtained for every appointment where applicable before payroll is amended
71.1.F Ensure properly authorised evidence of termination of employment is obtained for every cessation before payroll is amended
71.1.G Input accurately statutory details onto employee records.
71.1.H Input accurately marital status onto new employee records
71.1.I Input accurately employee number onto new employee records
71.1.J Input accurately rates of variable elements of pay onto new employee records
71.1.K Input accurately details of fixed deductions onto new employee records
71.1.L Input accurately bank or building society details onto new employee records
71.1.M Input accurately details of pay frequency onto new employee records
71.1.N Input accurately details of eligibility for occupational payments for adoption, maternity, paternity and sickness onto new employee records
71.1.O Input accurately duration of contract details onto new employee records
71.1.P Amend leavers’ records to ensure that leavers will not be paid in future pay runs
71.1.Q Accurately complete and despatch form P45 and P46, and any other relevant statutory documentation
71.1.R Identify and document all discrepancies and either resolve directly or by reference to theappropriate organisation or person
71.1.S Comply with all organisational and statutory timescales
71.1.T File form P45, form P46, form P38S and certificates of reduced liability and exemption in accordance with statutory and organisational requirements and in a logical and orderly manner
71.1.U File evidence of appointment forms, evidence of termination of employment forms and communications in relation to queries in accordance with statutory and organisational requirements and in a logical and orderly manner
71.1.V Maintain confidentiality and security of data at all times |
| 71.2 Implement instructions from external agencies |
71.2.A Verify all court order instructions for accuracy and completeness
71.2.B Verify all HM Revenue and Customs instructions for accuracy and completeness
71.2.C Verify all Child Support Agency instructions for accuracy and completeness
71.2.D Verify all local authority attachment of earnings instructions for accuracy and completeness
71.2.E Verify all individual mandates for accuracy and completeness
71.2.F Process instructions from H M Revenue and Customs in accordance with statutory and organisational requirements and within the timescale specified
71.2.G Process instructions from the National Insurance Contributions Office in accordance with statutory and organisational requirements and within the timescale specified
71.2.H Process instructions from the Child Support Agency in accordance with statutory and organisational requirements and within the timescale specified
71.2.I Process instructions from courts in accordance with statutory and organisational requirements and within the timescale specified
71.2.J Process instructions from local authorities in accordance with statutory and organisational requirements and within the timescale specified
71.2.K Process instructions from the Student Loan Office in accordance with statutory and organisational requirements and within the timescale specified
71.2.L Process instructions from the pension fund in accordance with statutory and organisational requirements and within the timescale specified
71.2.M Process instructions from trade unions and associations in accordance with statutory and organisational requirements and within the timescale specified
71.2.N Process instructions from financial institutions in accordance with statutory and organisational requirements and within the timescale specified
71.2.O Process instructions from charities in accordance with statutory and organisational requirements and within the timescale specified
71.2.P Ensure all non-statutory deductions are authorised by the employee concerned
71.2.Q Accurately identify and resolve all discrepancies directly or by reference to the appropriate organisation or person |
| 71.3 Evaluate and process permanent organisationalvariations to payroll |
71.3.A Evaluate all data relating to changes of grade for accuracy and reasonableness
71.3.B Evaluate all data relating to changes of employment status for accuracy and reasonableness
71.3.C Evaluate all data relating to variation in voluntary deductions for accuracy and reasonableness
71.3.D Evaluate all data relating to changes to pay rates for fixed and variable pay for accuracy and reasonableness
71.3.E Evaluate all data relating to changes in personal details for accuracy and reasonableness
71.3.F Check all data and documentation received against authorised signatory list
71.3.G Check all data and documentation received for employee authorisation
71.3.H Check all data and documentation received in line with organisational instructions
71.3.I Accurately identify and resolve all discrepancies directly or by reference to the appropriate person
71.3.J Process permanent variations accurately and in a timely manner |