AAT

Units - Payroll Administration

NVQ Level 2 & 3

The qualification is split between NVQ/SVQ Levels 2 and 3. There are three units at each level. However, due to overlap between these units, students are strongly advised to study one complete level at a time and only sit their assessments for each unit once they have finished studying all three units.

Level 2

Level 2 concentrates on the day-to-day running of payroll. This covers Units 71, 72 and 73 of the AAT Payroll Administration qualification.

Unit 71 deals with maintaining employee records, such as record keeping for starters and leavers (including P45s), dealing with instructions from external agencies and recording permanent payroll variations.

Unit 72 shows how to calculate gross pay (which includes bonuses, holiday pay and back pay) and statutory pay entitlements (SSP, SMP, SPP and SAP).

Finally Unit 73 shows how to calculate tax, NIC and other deductions in order to arrive at net pay. The qualification emphasises manual calculation of entitlements and deductions in order to be able to deal with queries.

Level 3

Level 3 concentrates on the higher levels of payroll administration and completion of the year-end forms. Once again, the qualification emphasises manual calculation of entitlements and benefits in order to be able to deal with queries. This level covers Units 74, 75 and 76 of the AAT Payroll Administration qualification.

Unit 74 deals with checking payroll parameters on the computer system, dealing with directors' NIC and termination payments. It also deals with answering internal queries and calculating redundancy pay.

Unit 75 shows how to record benefits during the year and how to complete year-end returns (including P14, P35 and P11D).

Finally Unit 76 deals with payments to external bodies (HMRC, pension fund) and queries from such bodies.

Units 21, 22 and 23

In order to receive the payroll qualification, students also need to have completed Units 21, 22 and 23 of the accounting qualification. These can be completed at either level 2 or level 3. Students that have already successfully completed these units do not need to do so again.