Moving On Up

How do you keep up-to-date with the constant change in payroll and related legislation? There are three necessary things. The first is a payroll journal that tells you about the changes as they happen and warns you of what's coming. The second is a loose-leaf reference manual that is updated regularly so you always have current information. The third is access to, and a budget for, good training.

Training Imperative

Many smaller businesses have outsourced their payroll activities to their accountant or to a payroll bureau, often to avoid having to maintain any in-house payroll expertise. Nevertheless, statutory compliance remains with the employer. In recognition of the increasing complexity of the statutory basis of payroll, especially for new and small companies, the Inland Revenue now provides a wide range of free half-day workshops covering specific payroll subjects, provided by the Business Support Units in the local tax offices.

Although many payroll managers have expert payroll knowledge, they cannot spend all day in research. As a result, even the most experienced payroll managers are likely to attend at least one payroll update course each year. And it is, perhaps, logical that some of the largest payroll service providers, who have taken over their client's payrolls because they are the specialists and the clients are not, call on external specialist trainers to teach their staff the latest rules. One of the largest service providers uses a number of the training companies to keep its staff up-to-date and qualified.

The wide availability of payroll training, and the willingness of many employers to send their staff on payroll training courses, is also of benefit to individuals. It is still common for companies to fill their payroll vacancies with inexperienced accounts clerks. Such novices may need several days of training to obtain an operational understanding of payroll. Regular refreshers also provide the 'continuing professional development' needed by experienced staff to maintain their marketability. And for those who want a career in payroll, or simply want their status in the business to be recognised, a number of payroll qualifications are available, leading to professional membership of the Institute of Payroll and Pensions Management (IPPM).

Details of the key players in the UK payroll training market are provided in the listing below.

Selecting The Right Course

There is a lot of "brand" loyalty in training and, once companies have found a supplier with trainers that their payroll staff find to be effective, they tend to continue with that training company. Nevertheless, there are different approaches to training and it is sensible to look around to find courses that suit your specific requirements or objectives.

What factors should be considered when looking for a suitable training course? Consider the following:

- How much does the course cost? Prices start from £100 for a half-day course and from £200 for a full-day course (excluding VAT). Many providers offer discounts for early or multiple bookings and loyalty discounts for return business.

- Is there a course to suit my needs? All of the companies provide courses covering basic payroll and year-end procedures. Some providers offer extended training courses for novices, extending over a number of days. Others cover a wide range of specialist payroll subjects, e.g. international payroll, construction industry, Revenue audits, employment status, and information security. There are also courses teaching more general management skills, such as recruitment and interviewing, report writing, effective communications, and presentation skills. The larger companies run annual payroll conferences each year.

- What training materials are provided? All courses include supporting training materials. Some of the companies now provide comprehensive course notes that not only complement the presentation but also serve as reference works back in the office. Courses that involve the development of specific skills, such as manual gross to net calculations, are usually in a workshop format with a variety of exercises. The number attending is restricted so that the trainer can give personal attention. As the Revenue are happy to supply large quantities of Tax and NI Tables and other guides to training providers, delegates are usually given original Revenue publications to work with.

- How effective are the courses on offer? Much depends on the trainers and the effectiveness of their personal styles. All of the providers use well-qualified presenters, usually with payroll or accountancy backgrounds. Courses offered by many training companies now offer electronic presentations, using computer and projector instead of the traditional OHP.

- Is there a course close to where I live? Some providers offer courses only in London or the larger population centres. Others run their more popular courses in towns and cities all over the country. Only a few run courses in Scotland and Northern Ireland.

- Would an in-house course be better? There is an increasing trend towards in-house training and most of the providers offer courses that are tailored to the specific needs of companies. If you have four or more employees who need training, running the course in-house may be cost-effective and benefit from the trainer concentrating on your specific needs and circumstances.

- How do I book a course? You may be on the circulation list of several providers and their brochures include post or fax booking forms. Alternatively, all of the companies have their own web sites that list their courses and some are now offering on-line booking and payment facilities.

Qualifications

The appearance of payroll qualification courses has done much to raise the profile of the payroll professional. The first qualifications were introduced by the Payroll Institute, and these are now administered by PAYtrain. Payroll Alliance also offer diploma, certificate and foundation qualifications. In the past year, Payroll Solutions and PAYtrain have introduced NVQs in Payroll Administration at levels 2 and 3.

The qualifications currently available, working from the lowest level upwards, are as follows:

NVQ at levels 2 and 3
These are workplace-based qualifications aimed at payroll staff who are new to payroll or who want confirmation of their experience. Both Payroll Solutions and PAYtrain offer supporting training and distance learning materials. The awards are available either through AAT, where students must sit Central Assessment papers, or through BTEC/EDEXEL.

Foundation in Payroll Administration
This is equivalent to NVQ level 3. The qualification is available through Payroll Alliance and PAYtrain, although the two courses differ in form. The Payroll Alliance course is a series of four days of training, not necessarily consecutively, followed by an examination. The course offered by PAYtrain involves distance learning and a Weekend School, again followed by an examination. The training course and distance learning are optional; students may simply sit the examination if they prefer.

Supervision and Team Leading Certificate
This is equivalent to NVQ level 4. This distance-learning course is offered by PAYtrain over a nine-month period, culminating in a tutor-marked assignment.

Certificate in Payroll Administration
This is offered by Payroll Alliance and is equivalent to NVQ level 4. It is also a distance-learning course comprising five modules that are completed over a 20-month period. The award is achieved by assessment.

Diploma in Payroll Management from PAYtrain, and National Diploma in Payroll Management from Payroll Alliance.
Both of these qualifications involve distance learning and are equivalent to NVQ level 5. The PAYtrain course takes two years to complete, although there is a one-year fast track version; the Payroll Alliance course consists of five six-month modules. Students have to complete a number of written assignments and both awards are achieved by assessment. New Certificate and Diploma courses are to be offered by Payroll Solutions from September 2001.

Master of Science Degree in Payroll Management
This is a two-year course from the IPPM and is offered by the University of Westminster. It comprises five 15-week study modules and workshops, with two written assignments per module and a final 10,000-word dissertation. (Contact IPPM, 0121 712 1081)

Diploma graduates may apply for full membership of the IPPM and use the designation MIPPMDip. However, for those readers who have worked in payroll management for many years, it is possible to obtain full membership by management entry without obtaining a diploma qualification first. The criteria are listed on the IPPM's web site, at www.ippm.org, under the Membership:Criteria link.