IAB Qualifications · Computerised payroll

IAB Computerised Payroll Qualifications

Three regulated qualifications that take learners from their first computerised pay run to senior payroll administration. Each level is assessed by one practical assignment in Sage Business Cloud, graded pass or fail, with no formal entry requirements.

Compare the three levels Which level is right for me?

Operational End Date: 1st March 2027. This applies to all three qualifications.

Pay run: month 6Processed in the software. Illustrative figures.

Summary	£
Employees paid	12
Gross pay	28,640.00
Tax and NI	−5,912.18
Pension	−859.20
Net pay	21,868.62

✓ FPS submitted

3Levels, from first pay run to senior payroll

60 to 95Guided learning hours per qualification

12Mandatory units across the suite

3 hrsSage practical assignment at each level

Find your starting point

Which level is right for you?

Each qualification is written for a different starting point. Pick the one that sounds most like you.

New to payroll software

Level 1 Award in Computerised Payroll

For learners who want an introduction to payroll processing on commercial software, whether starting from scratch or already working in payroll without a qualification.

See Level 1

Ready for non-routine tasks

Level 2 Certificate in Computerised Payroll for Business

For Level 1 holders, people new to payroll with some prior knowledge, returners updating their skills, and payroll staff without a formal qualification.

See Level 2

Heading for a senior payroll role

Level 3 Certificate in Computerised Payroll for Business

For holders of the Level 2 Certificate in Computerised Payroll for Business, aspiring self-employed practitioners, and business owners who keep their own payroll records.

See Level 3

The qualifications

Three levels, one clear route

Every unit is mandatory and every level is assessed online in Sage Business Cloud. Download the qualification specification for the full learning outcomes and assessment criteria.

Level 1Your first computerised pay runs

Level 1

IAB Level 1 Award in Computerised Payroll

Ideal for newcomers to payroll and unqualified payroll staff

Builds the knowledge and skills used by a payroll processor, including the services, advice and guidance offered to businesses by HMRC, NICO and other payroll agencies.

Unit 1 Principles of computerised payroll preparationSage practical assignment
Unit 2 Computerised payrollSage practical assignment

Both units are assessed together in one 3-hour Sage Business Cloud practical assignment.

Qualification number 601/9040/1

Qualification specification (PDF)

At a glance

Guided learning: 60 hours
Total qualification time: 80 hours
Assessment: One Sage Business Cloud online practical assignment (3 hours)
To pass: At least 70%
Entry: No formal requirements.

Level 2Statutory payments, pensions and RTI

Level 2

IAB Level 2 Certificate in Computerised Payroll for Business

Ideal for Level 1 holders and working payroll staff

Enables learners to undertake advanced tasks, including Statutory Sick Pay, Statutory Maternity Pay and a basic pension scheme. The process for starters and leavers is practised, and full use is made of Real Time Information functionality.

Unit 1 Termination of employment5 GLH
Unit 2 Fundamentals of employment legislation for payroll10 GLH
Unit 3 Calculate gross pay10 GLH
Unit 4 Elements of gross pay10 GLH
Unit 5 Computerised payroll theory10 GLH
Unit 6 Statutory and non-statutory payments and additions15 GLH
Unit 7 Composition of an employee payroll record10 GLH
Unit 8 Computerised payroll skills25 GLH

All units are assessed through one 3-hour Sage Business Cloud practical assignment.

Qualification number 601/0476/4

Qualification specification (PDF)

At a glance

Guided learning: 95 hours
Total qualification time: 190 hours
Assessment: One Sage Business Cloud online practical assignment (3 hours)
To pass: At least 70%
Entry: No formal requirements.

Level 3Senior processing and administration

Level 3

IAB Level 3 Certificate in Computerised Payroll for Business

Ideal for Level 2 holders and aspiring payroll administrators

Prepares learners to work as a senior payroll processor or payroll administrator, including the services, advice and guidance offered by HMRC, NICO, pension providers and the Department for Work and Pensions.

Unit 1 Principles of payroll administration25 GLH
Unit 2 Computerised payroll administration55 GLH

Both units are assessed together in one 3-hour Sage Business Cloud practical assignment.

Qualification number 603/3407/1

Qualification specification (PDF)

At a glance

Guided learning: 80 hours
Total qualification time: 130 hours
Assessment: One Sage Business Cloud online practical assignment (3 hours)
To pass: At least 70%
Entry: No formal requirements.

Side by side

Compare the computerised payroll qualifications

The key numbers from each specification in one table.

	Level 1 Award	Level 2 Certificate	Level 3 Certificate
Guided learning hours	60	95	80
Total qualification time	80 hours	190 hours	130 hours
Mandatory units	2	8	2
Assessment	One 3-hour Sage practical assignment	One 3-hour Sage practical assignment	One 3-hour Sage practical assignment
Pass mark	70%	70%	70%
Grading	Pass or fail	Pass or fail	Pass or fail
You finish able to	Process routine payroll on computer	Handle statutory payments, pensions, starters and leavers with RTI	Work as a senior payroll processor or administrator
Operational End Date	1st March 2027	1st March 2027	1st March 2027

Progression

Where each level leads

Learners can start at the level that matches their experience. Level 3 is designed for holders of the Level 2 Certificate.

1Level 1 AwardRoutine computerised payrollSee Level 1
2Level 2 CertificateStatutory payments, pensions and RTISee Level 2
3Level 3 CertificateSenior processing and administrationSee Level 3

Also at every levelPrefer to start with the principles? Payroll for Business qualifications run at Levels 1 and 2.

The wider portfolio

Explore other IAB qualifications

BookkeepingLevels 1 to 3Explore Computerised BookkeepingLevels 1 to 3Explore Payroll for BusinessLevels 1 and 2Explore AccountingLevel 4Explore LCCI QualificationsLevels 1 to 3Explore

FAQs

Computerised payroll qualification questions

Do I need any qualifications to start?

No. None of the three qualifications has formal entry requirements. Level 3 is designed for learners who hold the IAB Level 2 Certificate in Computerised Payroll for Business.

Which software is used?

Every level is assessed online in Sage Business Cloud, using software provided as part of the registration.

How are the qualifications assessed?

Each qualification is assessed by one online practical assignment lasting 3 hours, taken in Sage Business Cloud.

What mark do I need to pass?

You need at least 70% at every level. Results are pass or fail, with no grades.

How long does each qualification take?

Guided learning hours are 60 for Level 1, 95 for Level 2 and 80 for Level 3. Total qualification time, which also covers independent study and assessment, is 80, 190 and 130 hours respectively.

What is the operational end date?

The operational end date for all three qualifications is 1st March 2027.

Get started

Deliver IAB computerised payroll qualifications

Talk to the IAB awarding team about centre approval, assessment and adding the computerised payroll suite to your programme.

Talk to the awarding team

Call the IAB+44 (0) 208 187 8888Awarding teamao@iab.org.uk

IAB Computerised Payroll Qualifications

Which level is right for you?

Level 1 Award in Computerised Payroll

Level 2 Certificate in Computerised Payroll for Business

Level 3 Certificate in Computerised Payroll for Business

Three levels, one clear route

IAB Level 1 Award in Computerised Payroll

IAB Level 2 Certificate in Computerised Payroll for Business

IAB Level 3 Certificate in Computerised Payroll for Business

Compare the computerised payroll qualifications

Where each level leads

Explore other IAB qualifications

Computerised payroll qualification questions

Deliver IAB computerised payroll qualifications

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