Manage the Payroll Function
Unit summary
This unit is about your responsibility to control the accuracy and compliance of the payroll, to provide information to employees and managers and to implement redundancy pay procedures.The first learning outcome requires you to ensure that rates for permanent and temporary payments and deductions, including statutory payments and deductions, are correctly set in the computerised payroll system. You also need to calculate exceptional payments and ensure that directors’ National Insurance contributions are deducted correctly.The second learning outcome is about providing information to management and resolving employees’ queries about their pay. You need to show that you can extract data from the computerised payroll system and present information in a medium and format appropriate to the data being presented and the intended recipient.The third learning outcome is concerned with the implementation of redundancy pay procedures. You need to show that you can calculate redundancy pay, taking into account statutory and organisational requirements.Throughout the unit you need to show that you maintain confidentiality of employees’ personal details and that you meet organisational and statutory deadlines.
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. Employment rights legislation in respect of redundancy rights (LO 74.3)2. Industrial Tribunals legislation in respect of redundancy rights (LO 74.3)
3. Data Protection legislation (LOs 74.1, 74.2, 74.3)
4. HM Revenues and Customs regulations in respect of:
• Income tax and National Insurance liability on pay, expenses and benefits (LO 74.1)
• National Insurance regulations concerning directors (LO 74.1)
• Income tax and National Insurance regulations relating to “out of synch” payments (LO 74.1)
• Income tax and National Insurance regulations concerning termination and lump sum payments (LO 74.1)
• Legislation controlling attachments of earnings and their interaction with each other (LO 74.1)
The Organisation
5. Information flows within the organisation (LO 74.2)
6. Organisational, external agency and employee requirements for information (LOs 74.2, 74.3)
7. Procedures for the security and confidentiality of information (LOs 74.1, 74.2, 74.3)
8. Sources of information for the resolution of discrepancies (LOs 74.1, 74.2, 74.3)
Unit 74 of the AOSG Level 3 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 |
| 74.1 Applying controls to the payroll function |
74.1.A Ensure the treatment of all expenses and benefits are correctly identified with respect to tax, National Insurance and pensions deductions
74.1.B Ensure the treatment of all permanent payments allowances and enhancements are correctly identified with respect to tax, National Insurance and pensions deductions
74.1.C Ensure the treatment of all temporary payments allowances are correctly identified with respect to tax, National Insurance and pensions deductions
74.1.D Correctly update rates for permanent and temporary payments and deductions against agreed scales for each type of employee affected
74.1.E Correctly calculate payments not made on the due date (e.g. late payments to new starters) in accordance with organisational requirements, to the deadlines agreed
74.1.F Correctly calculate special one-off bonus not paid with normal pay in accordance with organisational requirements, to the deadlines agreed
74.1.G Correctly calculate payments to employees after they have left employment in accordance with organisational requirements, to the deadlines agreed
74.1.H Reconcile the National Insurance liability for directors against the National Insurance actually paid
74.1.I Accurately monitor Council Tax orders for compliance with legislation
74.1.J Accurately monitor Scottish arrestment of earnings for compliance with legislation
74.1.K Accurately monitor Child Support orders for compliance with legislation
74.1.L Accurately monitor attachments of earnings orders for compliance with legislation
74.1.M Ensure payments in lieu of notice are processed accurately and in accordance with legislative requirements
74.1.N Ensure ex-gratia payments are processed accurately and in accordance with legislative requirements
74.1.O Ensure statutory redundancy payments are processed accurately and in accordance with legislative requirements
74.1.P Ensure payments for damages are processed accurately and in accordance with legislative requirements
74.1.Q Ensure restrictive covenant payments are processed accurately and in accordance with legislative requirements
74.1.R Reconcile total charges to organisational budgets against aggregate payroll totals and correctly code them for allocation |
| 74.2 Resolve queries and produce management information |
74.2.A Seek clarification or additional information from employees or managers where the nature of their queries is not clear
74.2.B Check that individuals raising queries are authorised to receive the information they are requesting
74.2.C Agree all requests for information for content and deadlines for the despatch of reports printed from computerised payroll system
74.2.D Agree all requests for information for content and deadlines for the despatch of word processed documents
74.2.E Agree all requests for information for content and deadlines for the despatch of e-mail and electronic file transfer
74.2.F Agree all requests for personal information for content and deadlines for the despatch of information
74.2.G Agree all requests for organisational information for content and deadlines for the despatch of information
74.2.H Agree all requests for financial information for content and deadlines for the despatch of information
74.2.I Agree all requests for statutory information for content and deadlines for the despatch of information
74.2.J Agree all requests for non-statutory information for content and deadlines for the despatch of information
74.2.K Agree the use of formal reports in response to requests for information
74.2.L Agree the use of letters in response to requests for information
74.2.M Agree the use of memos in response to requests for information
74.2.N Produce accurate information that meets the requirements agreed with the intended recipients
74.2.O Respond to telephone or face-to-face enquiries accurately and in accordance with the organisation’s customer care requirements
74.2.P Refer enquiries to the appropriate person when you do not have the authority or expertise to resolve them |
| 74.3 Implement redundancy pay procedures |
74.3.A Ensure that redundancy notice documentation is checked for compliance with statutory and organisational requirements
74.3.B Ensure that the statement of redundancy payment documentation is checked for compliance with statutory and organisational requirements
74.3.C Ensure that the service record documentation relating to redundancy is checked for compliance with statutory and organisational requirements
74.3.D Ensure that the contract of employment documentation relating to redundancy is checked for compliance with statutory and organisational requirements
74.3.E Ensure that the birth certificate documentation relating to redundancy is checked for compliance with statutory and organisational requirements
74.3.F Ensure that the details of the organisational redundancy payment scheme are checked for compliance with statutory and organisational requirements
74.3.G Refer documentation that does not comply with statutory and organisational requirements to the appropriate person for resolution
74.3.H Calculate the length of reckonable service, age and value of a week's pay in accordance with statutory rules
74.3.I Calculate the amount of any statutory redundancy payment accurately
74.3.J Apply the terms of any local, non-statutory scheme to enhance the statutory payment correctly
74.3.K Inform the relevant pensions administrator where the redundancy is linked to pensionable retirement, calculate any abatement correctly and apply it to the final payment
74.3.L Input to the payroll system all sums due in respect of the redundancy in ways that ensure that payments will be made at the correct time and will receive the appropriate tax treatment
74.3.M Ensure all communications relating to redundancy are conducted at an appropriate level of confidentiality |