In conjunction with - Crown Workforce Management€¦ · Operations/Departmental Manager Level 5 TB...
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In conjunction with
Transcript of In conjunction with - Crown Workforce Management€¦ · Operations/Departmental Manager Level 5 TB...
In conjunction with
Today’s Presenters
Nick ColquittCommercial Director
Sue ScrivensPre-Sales Consultant
David BaconSales & Marketing Director
Today’s Agenda
• 11:30 Welcome, Coffee & Networking• 12:00 The Apprenticeship Levy – Background, Scenarios & Implications• 12.30 How to Comply and Benefits• 12:50 Working Lunch• 13:10 Tools to provide Visibility & Control• 13:30 Levy Strategy Considerations• 13:45 Q&A• 14:00 Conclusion & Networking Opportunity
Apprenticeship Levy Funding Update
Apprenticeships reform
Richards & Wolfe Reviews
Low level
Poor quality
Multi occupational frameworks
Apprenticeship Standards
Level 2 - 7
Roatp
Individual standard / occupation
Apprenticeships reform
Apprenticeship funding – The new world
• Government have committed to 3 million new apprenticeships by 2020• Spending £2.5bn to transform England investment in skills and people• The changes to funding and apprenticeship qualifications will create sustainable long term footing
Apprenticeship
Levy
Co-Investment
£3m+ Payroll bill = ‘Apprenticeship Levy` payer
The facts:
• Apprenticeship levy (mandatory tax) • Government implementation 6th April 2017• 0.5% of total payroll bill• Payment via usual PAYE to HMRC• Top up of funds• Invested on apprenticeship training• Accessed via Digital Apprenticeship Service• Expiry of funds after 24 months
Allowable for corporation tax
Levy spend = Pay bill (total amount of employee earnings subject to Class 1 NI contributions (wages, bonuses, commissions, pensions)) x 0.005 – levy allowance (£15,000)
Funding will operate from 1st May 2017
Payments begin in May 2017, monthly based on prior months pay bill
Government apply 10% top up to funds monthly
For use on apprenticeship training and end point assessment
Choose programme, provider and pay
Paying the levy
Levied Employer
• Employer of 250 employees, each with a gross salary of £20,000.
• Pay bill: 250 x £20,000 = £5,000,000
• Levy sum: 0.5% x £5,000,000 = £25,000
• Allowance: £25,000 - £15,000 = £10,000 annual levy payment
Non-levied Employer
• Employer of 100 employees, each with a gross salary of £20,000.
• Pay bill: 100 x £20,000 = £2,000,000
• Levy sum: 0.5% x £2,000,000 = £10,000
• Allowance: £10,000 - £15,000 = £0 annual levy payment
How?
• Employers will calculate, report and pay their levy to HMRC, through the Pay As You Earn (PAYE) process alongside income tax and National Insurance.
• Single employers with multiple PAYE schemes will only have one allowance.• Connected employers - we intend to allow employers to share one allowance between employers which are in
connected ownership or control.• Employers will not be exempt from the apprenticeship levy if they already pay into an existing levy.
Co-investment
• Employers who haven’t paid the levy and want to purchase apprenticeship training from a provider• A levy-paying employer who with insufficient funds in their digital account to pay for the cost of training
and assessment they want to purchase
Government 90%
Employer 10%
Employer with
UK payroll bill of
more than £3M
PA
0.5% taken through Apprenticeship Levy System
monthly
£15K Government Allowance
Use to train new and existing employees on
accredited apprenticeship programmes
Don’t use your Levy contribution and treat as a
sunk cost
Other organisations can use your contributions to spend
on their own talent programme
Additional 10% monthly top up available and you must use
or lose the levy within 24 months
• Worked example
• Employer has £12,000 annually entering their levy account
• Monthly account funding = £1,000
• Top up: 10% x £1,000 = £100
• Levy monthly account increase: £1,000 + £100 = £1,100
• £13,200 annually to spend on Apprenticeships
Employers who pay the levy and are committed to apprenticeships training will be able to get out more than they pay in to the levy.
The government will apply a 10% top-up to monthly funds entering levy paying employers’ digital accounts, for apprenticeship training in England, from April 2017.
Fully utilising the levy (getting more out than you put in)
Levy Calculation ToolPAYE Bill if known 220,909,000 App levy amount from PAYE bill 1,104,545
PAYE bill from levy amount 220,909,000 App levy if known 1,104,545
Government supplement 110,455
Estimation table Total levy spend 1,200,000
Qualification Qty Spend from levy Levy utilised in estimation 1,705,000
Operations/Departmental Manager Level 5 TB 50 225,000 Levy remaining in estimation -505,001
Retail Team Leader Level 3 TB 200 800,000
Retailer Level 2 TB 50 200,000
Warehouse Level 2 200 480,000
Actual breakdown from Levy monthly tab Levy utilised from actual breakdown 1,085,000
Levy remaining from actual breakdown 115,000
Qualification Qty Spend from levy
Operations/Departmental Manager Level 5 TB 50 135,000 Additional savings Number of apprentices
Retail Team Leader Level 3 TB 200 500,000 NI saving >25yrs 390 557,520
Retailer Level 2 TB 50 150,000 16-18 incentive payments 250 250,000
Warehouse Level 2 200 300,000
Savings and incentive total: 807,520
Number Band limit
1 £1,500
2 £2,000
3 £2,500
4 £3,000
5 £3,500
6 £4,000
7 £5,000
8 £6,000
9 £9,000
10 £12,000
11 £15,000
12 £18,000
13 £21,000
14 £24,000
15 £27,000
How to spend the levyQualification type Apprenticeship title Level Framework/
Standard
Cost
Customer Service Customer Service Practitioner 2 Standard £4,000
Digital Industries Software Developer 4 Standard £18,000
Digital Industries Digital Marketer 3 Standard £9,000
Digital Industries Infrastructure Technician 3 Standard £15,000
Digital Industries Network Engineer 4 Standard £18,000
Leadership & Management Operations/Departmental
Manager
5 Standard £9,000
Leadership & Management Team Leader/Supervisor 3 Standard £5,000
Logistics & Supply Chain Supply Chain Warehouse
Operative
2 Standard £3,000
Retail Retail Team Leader 3 Standard £5,000
Retail Retail Manager 4 Standard £6,000
Frameworks vs Standards
Initial assessment Initial assessment
On-the-job & Off-the-job training
Gateway
End point assessment
Completion and certification
Occupational competence
Completion and certification
Occupational competence
On-the-job & Off-the-job training
Multi-occupational SASE frameworks Individual standard per occupation
Apprenticeships
• Employer and Training Provider
• Independent end assessment organisation
• Employer and Training Provider
• Training provider
Knowledge / Qualification
On-programme
delivery
Gateway to End Point
Assessment
End Point Assessment
Working Lunch Break – 20 Minutes
6
Workforce Rostering
Employee Self-Service
Expense Tracking
Workforce Analytics
Site Access Control
Visitor & Contractor
Management
Activity Management
Human Resources
Time & Attendance
Tools to Give Visibility, Control & Insight
Visibility, Control & Insight
• Organisational Structure & Job Roles• Job Requirements• Future Training Requirements• Record-keeping• Reporting & Analytics
Those responsible for utilising their levy pot will need to fully understand their organisation’s structure and future plans for change or growth.
Understand Growth Plans. How can you use the Levy pot to support growth?
Understand Succession Plans. Who would like to progress, who has been identified for progression and is there a skills gap?
Know the requirements for each job
Do the skills, qualifications and experience of each employee match those required for the job?
Know the future requirements for progression.
Report on and analyse your information
Report on and analyse your information
Record use of Levy Funding
Record Training Hours via Employee Self Service.
Electronic Timesheet Entry Facility
Capture the hours spent on off-the-job and applicable on-the-job apprenticeship training in order to evidence minimum 20% of total employee worked time.
Provide evidence of time spent on training per Employee.
Analytics provides a graphical view of those recorded training hours.
Monitor Employee time spent on training as a percentage of their standard contractual hours.
Utilising the levy
Apprenticeships Early CareerTalent
development
Established apprenticeship programme review
Talent pipeline & development
L&D spend
Skills gap / role diagnostics
Recruitment strategy
Apprenticeship mission and strategy:
Attract Retain Develop
Top talent & future leaders
Clearly identifiable career paths
Demonstrate socially responsible employer contribution
Backing Young Britain
Qualification reforms
Apprenticeship levy
Question & Answer Session
Thank you for attending
Please don’t hesitate to contact us
• Nick Colquitt [email protected]• Nadine Hughes [email protected]• David Bacon [email protected]
Useful links
• Apprenticeships reform• Apprenticeship levy reform • Apprenticeship standards • Apprenticeship standards funding bands• Compliance & Workforce Management Tools• Create a new account
