IAB Qualifications · Payroll

IAB Payroll Qualifications

Two regulated qualifications that build the knowledge and practical skills to work as a payroll processor for a variety of businesses. Assessed online, graded pass or fail, with no formal entry requirements.

Compare the two levels Which level is right for me?

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

PayslipGross to net. Illustrative figures.

Item	£
Basic pay	2,400.00
Overtime	180.00
Gross pay	2,580.00
Income Tax	−263.40
National Insurance	−105.36
Pension	−77.40
Net pay	2,133.84

✓ Net pay checked

2Levels, from principles to computerised processing

50Guided learning hours at each level

5Mandatory units across the suite

NoneFormal entry requirements

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

Level 1 Award in Payroll for Business

For learners with no prior knowledge, junior staff, career changers, people returning to learning, and small business owners.

See Level 1

Some payroll experience

Level 2 Award in Payroll for Business

For learners furthering their payroll studies, people with practical skills who want accreditation, aspiring self-employed practitioners, and business owners who run their own payroll.

See Level 2

The qualifications

Two levels, one clear route

Every unit is mandatory and every assessment is taken online. Download the qualification specification for the full learning outcomes and assessment criteria.

Level 1The foundations of payroll

Level 1

IAB Level 1 Award in Payroll for Business

Ideal for complete beginners and small business owners

Gives learners a comprehensive range of knowledge and the practical skills to use as a payroll processor for a variety of businesses, from the principles of payroll preparation through to computerised payroll processing.

Unit 1 Principles of payroll preparation10 GLH · knowledge test, 1 hr
Unit 2 Fundamentals of payroll processing10 GLH · assignment, 2.5 hrs
Unit 3 Computerised payroll processing30 GLH · assignment, 2 hrs

Qualification number 603/3022/3

Qualification specification (PDF)

At a glance

Guided learning: 50 hours
Total qualification time: 120 hours
Assessment: One online knowledge test (1 hour) and two online assignments (2.5 hours and 2 hours)
To pass: 70% in the knowledge test and in each assignment
Entry: No formal requirements.

Level 2Employment law and computerised processing

Level 2

IAB Level 2 Award in Payroll for Business

Ideal for learners with some experience and hands-on business owners

Covers the principles of employment legislation and payroll processing, then tests computerised payroll processing in an online examination, preparing learners to work as a payroll processor for a variety of businesses.

Unit 1 Principles of employment legislation and payroll processing20 GLH · knowledge test, 1 hr
Unit 2 Computerised payroll processing30 GLH · examination, 2.5 hrs

Qualification number 603/3408/3

Qualification specification (PDF)

At a glance

Guided learning: 50 hours
Total qualification time: 100 hours
Assessment: One online knowledge test (1 hour) and one online examination (2.5 hours)
To pass: 70% in the knowledge test and 60% in the examination
Entry: No formal requirements.

Side by side

Compare the payroll qualifications

The key numbers from each specification in one table.

	Level 1 Award	Level 2 Award
Guided learning hours	50	50
Total qualification time	120 hours	100 hours
Mandatory units	3	2
Assessment	Knowledge test and two online assignments	Knowledge test and online examination
Grading	Pass or fail	Pass or fail
You finish able to	Prepare and process payroll, including on computer	Apply employment legislation and process payroll on computer
Operational End Date	1st March 2027	1st March 2027

Progression

Where each level leads

Learners can start at the level that matches their experience, then move up a level or across into another qualification at the same level.

Also at every levelPrefer to learn on software? Computerised Payroll qualifications run at Levels 1, 2 and 3.

The wider portfolio

Explore other IAB qualifications

BookkeepingLevels 1 to 3Explore Computerised BookkeepingLevels 1 to 3Explore Computerised PayrollLevels 1 to 3Explore AccountingLevel 4Explore LCCI QualificationsLevels 1 to 3Explore

FAQs

Payroll qualification questions

Do I need any qualifications to start?

No. Neither qualification has formal entry requirements.

How are the qualifications assessed?

All assessment is online. Level 1 uses a 1-hour knowledge test and two online assignments lasting 2.5 hours and 2 hours. Level 2 uses a 1-hour knowledge test and a 2.5-hour online examination.

What mark do I need to pass?

At Level 1 you need 70% in the knowledge test and in each assignment. At Level 2 you need 70% in the knowledge test and 60% in the examination. Results are pass or fail, with no grades.

How long does each qualification take?

Both qualifications have 50 guided learning hours. Total qualification time, which also covers independent study and assessment, is 120 hours for Level 1 and 100 hours for Level 2.

What is the difference between Level 1 and Level 2?

Level 1 covers the principles of payroll preparation, the fundamentals of payroll processing and computerised payroll processing. Level 2 adds the principles of employment legislation and tests computerised payroll processing in an online examination.

What is the operational end date?

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