Foundation in Tax, NI, Starters & Leavers
(Payroll Foundation A and B)

This popular and highly focused two-day programme is ideally suited for inexperienced payroll staff who have some knowledge of payroll or have attended the Payroll for Beginners. It is also suitable for those who have some payroll experience but require further training in order to have complete confidence in their ability to not only manually calculate tax, National Insurance, new starters and leavers but also to deal with employees’ queries.

Practical exercises are provided throughout the two-day course.

Course Programme:

Day One
• Build up to gross pay
• Pre tax additions & deductions
• Post tax additions & deductions & which deductions take priority
• Gross to net calculations – which figure is used to calculate tax & NI
• The Tax Year & how it works
• How pension contributions affect NI
• NI calculations – table & percentage method
• Standard rates of NI – categories A, D & F – how do you decide which category to deduct?
• How the cumulative tax system works
• Current tax rates & tax bands
• Personal allowances for tax purposes – understanding the rules
• How the Taxable Pay tables work
• How to use the Pay Adjustments tables in conjunction with the operation of tax codes
• How to manually calculate tax using the tax tables

Day Two
• What attracts NI?
• K tax codes – why are employees on K tax codes & how to manually calculate tax
  using a K tax code
• Reduced Rate NI & Age Exemptions – what are the rules? - How to check that the
  certificates are valid & how to make the calculations. Dealing with the problems
  & pitfalls?
• Processing new starters onto the payroll
• Processing & checking the P45 for a new starter
• Dealing with forms P6, P9, P7X & P9X
• Processing form P46 for new starters without a P45
• How to process leavers correctly
• How to calculate final pay
• Payments after leaving
• The correct payroll procedures for:
   – dealing with leavers
   – maternity leavers
   – employees retiring
   – an employee who has died
   – additional payments to leavers
• Issuing forms P45 and P160 to leavers – the perils & pitfalls

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