REGULATED QUALIFICATIONS FRAMEWORK (RQF) From September 2016 Introduction With effect from 1 st September 2016, the IAB introduced a new range of payroll qualifications in line with the Regulated Qualifications Framework, or RQF. Part of the movement from QCF to RQF has meant the re-writing of the payroll units (which are based on the National Occupational Standards for Accounting and Finance), and, from these, new qualifications. There are now fewer units at each level; duplication of knowledge and skills has been removed and some small units have been combined with others. At each level the Knowledge Unit differs slightly if the candidate is sitting the computerised qualification only. The candidates will now take an e-assessed Knowledge Test at all Levels for computerised payroll qualifications. At Levels 1 and 2 the end exam is completed by e-assessment; the candidate is required to process the payroll using commercially available payroll software (NOT the HMRC Basic Tools) and then enter information from the reports prepared onto the e-assessment system. The candidate will submit a file of the reports they have prepared to the IAB for moderation purposes. At Level 3 the end exam will be completed in the traditional manner with reports sent to the IAB for marking. For the full Award or Certificates in Payroll at each level there are two skills Assignments to complete by e-assessment: one assignment tests the calculation of gross pay while the second assignment tests the candidate s ability to process a payroll using the HMRC Basic PAYE Tools Kit. The assignment is then completed by e-assessment; the candidate is required to enter information from the reports prepared which is then marked automatically. As with computerised payroll the candidate will submit a file of the reports they have prepared to the IAB for moderation purposes. Sample Assessment Material has been produced for all knowledge tests, assignments and synoptic end exams.
Qualifications and their respective units Level 1 Award in Computerised Payroll (RQF) - Units Principles of Computerised Payroll Processing Knowledge Computerised Payroll - Skill Level 1 Award in Payroll (RQF) Units Payroll Preparation - Knowledge Calculation of Gross Pay - Skill Payroll Processing - Skill Computerised Payroll - Skill Level 2 Award in Computerised Payroll Processing (RQF) - Units Principles of computerised payroll legislation and processing Knowledge Computerised Payroll Processing - Skill Level 2 Certificate in Payroll (RQF) - Units Fundaments of employment legislation and payroll processing Knowledge Determining Gross Pay Skill Processing the Payroll Skill Computerised Payroll Processing Skill Level 3 Certificate in Computerised Payroll Administration (RQF) - Units Principles of employment legislation and payroll preparation Knowledge Computerised Payroll Administration Level 3 Certificate in Payroll (RQF) - Units Employment legislation and payroll preparation Knowledge Determining Gross Pay Skill Payroll Processing Skill Computerised Payroll Administration Skill
Knowledge Tests There is one Knowledge Test for each qualification at each level which is e-assessed. The KT used in the Computerised qualifications is almost the same as for the full qualification but has some deviation in order to encompass working with computerised payroll. Level 1 Knowledge Tests Principles of Computerised Payroll Processing Knowledge Test Award in Computerised Payroll only Payroll Preparation Knowledge Award in Payroll only Level 2 Knowledge Tests Principles of computerised payroll legislation and processing Knowledge Test - Award in Computerised Payroll only Fundaments of employment legislation and payroll processing Knowledge Test Certificate in Payroll only Level 3 Knowledge Tests Principles of employment legislation and payroll preparation Knowledge Test Certificate in Computerised Payroll only Employment legislation and payroll preparation Knowledge Test Certificate in Payroll only Assignment 1 Assignment 1 at each level covers the calculation of Gross Pay and is assessed by e-assessment. Below is an example of a table which the candidates will complete from given information, this will contain Fixed Information that the candidate will not need to change and boxes that will need figures added for marking. NB: No own figure marks allowed Company name Department: xxxxxxxx Week-ended date: xx.xx.xxxx Payment date: xx.xx.xxxx Employee Gareth WILLIAMS Basic hours Basic hourly Rate Basic Pay Overtime Hours Overtime hourly rate Overtime Pay Gross Pay Anill SHAH Harriet McVEY Lee BROADHURST Brian FORD Total
Assignment 2 Assignment 2 at each level covers the processing of the payroll using the latest version of the HMRC Basic PAYE Tools Kit and is assessed by e-assessment. The Payroll Processing unit at each level specifies the statutory and voluntary deductions and the paper comes in two parts: Part A and Part B, with each part then split into Tasks. Part A is very similar to the previous version of Assignment 2 the only difference is that we now include the gross pay figures for the candidates. It should also be noted that pension contributions are now included at Level 1 due to work based pensions now being widely used. Part B of the paper represents the section that is reproduced online for completion by the candidate. Again tables and forms will be reproduced for the candidate to complete and will be e-assessed from the model answers. The candidate will enter figures and information given on the reports requested in Part A. Two examples of different types of task are given below: TASK 1 In Task 1 of Part A you were asked to produce a report showing the Employees Details. Using that form enter the missing details into the tables below, Employee Name Payroll ID Type of starter XXXXXXX BB003 1 Existing Employee 1 Employee Name Normal weekly hours worked Paid on an irregular basis: XXXXXXX 30 hours or more 1 NO 1 TASK 4 In Part A Task 7 the payroll was processed for the weekly paid employees for Week 2. Using the Employee Pay and Deduction Reports prepared in Part A Task 7 complete the extract from the Payroll Summary table given below for Week 2 for A N Other: Week-ended date: XX.XX.XXXX Employee Gross E ee Pay Pension A N Other 457.00 13.11 COMPANY NAME PAYROLL SUMMARY Income Tax 67.60 E ee NIC 36.24 Christmas Savings 10.00 Payment date: xx.xx.xxxx Net E er E er Pay NIC Pension 330.05 1 41.54 13.11
Levels 1 and 2 End Exam The end exam for these Levels is now completed online in the same way as Assignment 2. The processing of the payroll is carried out using up to date versions of commercially available payroll software (NOT the HMRC Basic Tools) Candidates must complete the Knowledge Test for this Unit, Principles of Computerised Payroll Preparation, as part of the qualification. Again the paper comes in two parts: Part A and Part B, with each part then split into Tasks, similar to Assignment 2. Part A of the paper is the processing of the payroll using commercially available payroll software. Again the gross pay figures are included, it should also be noted that pension contributions are now included at Level 1 due to all employers having to be Auto Enrolled by this tax year. Part B is completed online in the same way as Assignment 2, using the reports prepared in Part A. Level 3 End Exam The end exam for L3 is prepared, completed, marked and moderated in the traditional way with the reports being sent to the IAB for marking and moderation. The only difference between our previous papers and the new format is that the gross pay figures will be given as in the other levels. There is still an answer booklet for use with certain types of questions see the example below: TASK 6 It is the 30 June xxxx and you have been asked to submit the Cost of Wages for June xxxx (Month 3). In the space below show your calculation of the required Cost of Wages. FORMULA: CALCULATION: 5 marks
TASK 7 You have been asked to give the management the total of Statutory Additions to Pay paid to employees in June and the amount due to HMRC for Months 1 3 In the space below show the total amount of Statutory Payments made to employees in June xxxx the necessary figures can be found on the Payments Summary sheet In the space below show the total amount due to HMRC for Months 1 3 of 2016/17 tax year 2 marks There has, possibly, been the most changes made to the Level 3 End Exam, for example, candidates will now be tested on Salary Sacrifice and tutors must ensure that the candidates are au fait with the various types, such as Pension contributions, Company cars, Childcare and Share save schemes. Learners should also demonstrate that they can process the pay for a leaver under a variety of situations including redundancy, change of employment, death in service, or retirement. Candidates also need to demonstrate that they can calculate the cost of wages for a specific period using information gained from various reports available from the payroll software and also reconcile payments to the tax authority and other statutory bodies from those reports. This is, by no means, a complete list of everything that may be included in the various Knowledge Tests, Assignments or End Exams so tutors should refer to the relevant Qualification Specification which is available on the IAB website.