Participants will receive access to the recorded sessions of the course.
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The efficient management of the payroll function is crucial for any business with multiple employees. It is an aspect that requires attention to detail and careful observation of the regulatory environment. The integration of the payroll function with the finance and human resource departments further contributes to the operational management of a successful organisation.
This programme offers a comprehensive understanding of the principles of payroll management and effective controls with a strong emphasis on practical application in the working environment. Whether you are seeking to manage these functions within your organisation or to diversify your skillset for career progression, this programme will provide you with the skills and knowledge needed to perform the vital function of payroll management and the effective implementation of controls.
You will find value by formalising and updating your skills and learning the most up-to-date processes and best practices involved in the payroll function.
Training Objectives
- Explain the payroll function and its importance
- Explain the proper structure of an efficient and compliant payroll department
- Identify the different types of employees
- Define the objectives of the payroll team
- Explain the importance of developing a proper payroll procedures manual
- Identify the key steps in payroll activities
- Identify the relevant laws involving in the payroll function
- Differentiate between employees and service providers and their relevant treatment
- Identify the statutory reports that must be filed with the tax authorities
- Identify the internal reports the payroll function must generate for management
- Explain the employee’s remuneration and statutory deductions
- Identify and explain the benefits in kind
- Explain how payroll interacts with the accounting system and the associated record keeping, controls and measurements
- Identify and explain the controls that must be in place to safeguard the proper function of the payroll department
- Develop a properly structured and compliant payroll department
- Implement an efficient payroll procedures manual
- Maintain properly the employees’ records
- Effectively process the employees’ leave
- Comply with all the relevant employment laws and regulations
- Properly classify employees, differentiating employees and private contractors based on the common law rule
- Track employee time and differentiate between types of employee compensation
- Calculate the employees’ gross pay and benefits in kind
- Calculate and account for all required employee deductions associated with benefits and all required wage taxes
- Generate information and reports for internal and external use
- Plan, organize, implement, and monitor work within the payroll environment
- Assess the performance of internal and external payroll audits
- Integrate the payroll into the HR and finance departments
- Mitigate the risk and implement controls
- Justify the importance of computing the payroll taxes
- Assess the readiness of the organisation to apply the requirements of a compliant payroll department
- Recommend solutions to address the changes to the legislation
- Adopt a formal policy to be followed when addressing payroll requirements
- Justify the importance of the implementation of a compliant payroll department
- Justify the need of company to apply the requirements of the payroll laws and regulations
Training Outline
Section I: Establishing a Payroll Department
Payroll environment
- Definition
- Payroll Importance
- Trends
- Payroll challenges
- Risk, Regulation, and Compliance
Creating a payroll system
- The process
- Policies and Procedures Manual
- Pitfalls
- Examples of policies
- Examples of procedures
- Payroll department staffing
- Payroll software
- Cost centres
- Pay points
- Other considerations
Payroll controls
- Definition
- Internal controls
- Department analysis
- Risk sources
- Risk identification
- Control Implementation
Performance assessment
- The need for assessment
- Key Performance Indicators – KPI’s
- Metrics for payroll department performance
- Other payroll department performance metrics
- Organization wide metrics
Preparing payroll
- Identify employees
- Employee classification
- Employee set-up
- Employer registration
- Declaration of employment
- Declaration of taxable earnings
Provident funds
- What the law covers
- Register of Provident Funds
- Rules/Regulations of a Provident Fund
- Management Committee
- Contributions to the Provident Funds
- Benefits
- Investments and loans
Section II: Payroll Compliance
- Employment Relationship Law
- The Protection of Wages Law of 2007
- The Minimum Wage
- Hours of Employment Law (Cap 182)
- Working Time Directive (WTD)
- Maternity Leave – Maternity Protection Law
- Termination of employment Law
- Redundancy Law
- The Law of Pensions
- Data Protection Directive
- Acquired Rights Directive
- Other relevant legislations
Section III: Implementing Payroll Activities
Calculating Remuneration
Employee compensation
- Interpretation of remuneration
- Earnings categories
- Overtime
- Recording time
- Basis of assessment
Benefits in Kind
- Scope of application
- Presumption for the provision of a benefit in kind
- Classification of benefits in kind
- Allocation of the benefits in kind
- Cash allowances
- The obligation to pay the relevant tax
- Records
- Classification of benefits in kind
- Benefits in Kind – Use of Car
– Car benefits
– When does the benefit in kind arise?
– Use of a saloon car belonging to the employer
– Reduction of the private use value of the car (a point-to-point journey)
– Period less than one year
– Reimbursements/use of cars belonging to employees for business purposes
– Commercial cars (van type)
– Multiple car cash allowances
- Benefits in Kind – Use of assets, accommodation and relevant costs
– Benefits related to accommodation and use of assets
– Determination of the value
– Renting the property
– Transfer of assets
- Benefits in Kind – Other benefits in kind
– In-house property benefit in kind
– External property benefits in kind
– Business Travel
– Private expenses
– Other Benefits
– Exemptions
– Other information
Calculating Statutory Deductions and Contributions
Social insurance contributions and deductions
- The social insurance scheme
- Benefit and Contribution year
- Insurable benefits
- Non insurable benefits
- Employed persons’ contributions
- Social Insurance contributions cost for employer
- National Healthcare Scheme (GESY)
- Summing Up Social Insurance
- Liability for payment of contribution
- Additional charges
- Other deductions
- Occupational pensions
- Refund of contributions
- Record keeping
- Inspection of employers
- International business
- Bilateral agreements
- EU social security coordination
PAYE Tax
- Imposition of tax
- Tax residency
- Implementing PAYE
- PAYE administration
- Exemptions
- The 50% exemption
- Grandfathering provisions
- The 20% exemption
- Payroll completion
- Not taxable earnings
- Deductible expenses
- Not – deductible expenses
- Personal tax allowance
- Tax computation
Completing Payroll Process
- Issuing payslips
- Employees’ payments
- Payment of PAYE & contributions
Section IV: Payroll Reporting
Statutory Reports
- Claim for allowances for the year (TD59)
- Statement of Earnings and Contributions
- Statements of monthly deduction (TD61)
- Benefits in kind declaration form (TD286)
- Employer’s return (IR7)
- Emoluments certificate for the year (TD63)
Process digitalization
Internal Reports
- Payroll Register
- Employee-specific reports
- Benefit register
- Employees leave report
- Other payroll reports
- Accounting payroll cost
- Recording payroll cost
- Employee data
Payroll Audits
- Common payroll issues
- The process
- Benefits
- Objectives
- Evaluation of the internal control system
- Stages in a wages system
- Assessing the risk of material fraud
- How to conduct an effective payroll audit
Analytics
- Payroll data
- Minimize/Eliminate Errors
- Informed Business Decisions
- Planning for Future Growth
- Superior Hiring Decisions
- Improved Employee Retention
Who should attend
- Payroll Administrators who wish to enhance their payroll knowledge and application
- Human Resource professionals who wish to gain a better understanding of the payroll system and how it is integrated into the corporate human resource environment
- Accountants who wish to diversify their skillset for career progression
- Payroll supervisors or managers
- Finance officers or managers who oversees the payroll function
Training Style
- Illustration of key terms and concepts
- Preparation and discussion of practical examples, including mini cases
- The course will have both a theoretical and practical framework with real examples drawn from actual companies, local and international
- Activities and Break-out groups
Knowledge Test
At the completion of the knowledge areas, participants will be assessed via the form of Multiple-Choice Questions which will consist of questions related to the material taught. The aim of the assessment is to examine participants’ overall attention and knowledge of material taught as well as their competencies towards the implementation of practical cases.
CPD Recognition
This programme may be approved for up to 20 CPD units in Accounting & Auditing. Eligibility criteria and CPD Units are verified directly by your association, regulator or other bodies which you hold membership.
In-house Training
For groups within the same organisation, this course may be customized to meet any specific needs and delivered in-house.
