Gross Pay Calculator p

Transcription

1 EXPT REVISION PAPER - Suggested answers TASK 1 Gross Pay Calculator p Monthly Salary Daily Salary Adjustments to Pay ( + or -) Bonus Statutory Payments Gross pay for pay period Cumulative gross pay Voluntary Deductions Employee s Pension due for Pay Period 3% Employee s AVC due for Pay Period Charitable Giving due for Pay Period Employee s Cumulative pension year to date Employee s Cumulative AVC year to date Cumulative Charitable Giving year to date Employer Contributions Employer s Pension due for month 3% Employer s Cumulative Pension - year to date Tax Allowable Deductions GAYE Total Tax Allowable Deductions

2 Tax code used 1060 Pay Period 1 p Cumulative gross pay Less cumulative allowable deductions Cumulative pay for tax purposes Pay adjustment (884 09) Cumulative taxable pay Tax calculation 20% = 40% Cumulative tax due Tax due for month Rounding Rules for National Insurance Calculations Only If the third decimal place is equal to or greater than 6, round up, otherwise round down. National Insurance Calculations p NI table letter used A Gross Pay for NIC Employee Calculations Earnings Up to Lower Earnings Limit 486 Nil Earnings from LEL to PT 186 0% Earnings Bands % Calculation NI Payable Earnings from PT to UAP % Earnings from UAP to UEL % Earnings above UEL 618 2% Rebate (If applicable) Total NI Contributions Cumulative Employee NI Contributions Employer Calculations Earnings Bands Earnings Up to Lower Earnings Limit 486 Nil Earnings from LEL to ST 190 0% % Calculation NI Payable Earnings from ST to UAP % Earnings from UAP to UEL % Earnings above UEL % Rebate (If applicable) Total Employer NI Contributions Cumulative Employer NI Contributions

3 Payslip Employee Graham Watkins Date 30/04/15 Payments Deductions Cumulative : p : p : p Basic pay: Income Tax: Gross pay: Overtime: NIC: Pay for Tax purposes: Bonus: Pension: Tax: SMP: AVC: Employees NIC: SSP: Charitable Giving: Employers NIC: SPP: Loan Employee Pension (Inc AVCs): Commission: Social Club Employer Pension Arrears: AEO Charitable Giving: Admin Fee Student Loan Total Gross Pay: Total Deductions: Net pay: NI Number: JD987234D Tax code: 1060L 3

4 WORKINGS TASK 2 2 weeks paternity pay = x 2 = May 21 working days (inc Bank holiday) Daily Salary = per day Deduction from pay = Worked 11 days = 11 x = Adjusted gross salary Gross Salary = =

5 Gross Pay Calculator p Monthly Salary Daily Salary = Adjustments to Pay ( + or -) ( ) Statutory Payments Gross pay for pay period Cumulative gross pay Voluntary Deductions Employee s Pension due for Pay Period 3% Employee s AVC due for Pay Period Charitable Giving due for Pay Period Employee s Cumulative pension year to date Employee s Cumulative AVC year to date Cumulative Charitable Giving year to date Employer Contributions Employer s Pension due for month 3% Employer s Cumulative Pension - year to date Tax Allowable Deductions GAYE Total Tax Allowable Deductions

6 Tax code used 1060L Pay Period 2 p Cumulative gross pay Less cumulative allowable deductions Cumulative pay for tax purposes Pay adjustment ( ) Cumulative taxable pay Tax calculation 20% Cumulative tax due Tax due for month Rounding Rules for National Insurance Calculations Only If the third decimal place is equal to or greater than 6, round up, otherwise round down. National Insurance Calculations p NI table letter used A Gross Pay for NIC Employee Calculations Earnings Up to Lower Earnings Limit 486 Nil Earnings from LEL to PT 186 0% Earnings Bands % Calculation NI Payable Earnings from PT to UAP % Earnings from UAP to UEL Earnings above UEL Rebate (If applicable) Total NI Contributions Cumulative Employee NI Contributions Employer Calculations Earnings Bands Earnings Up to Lower Earnings Limit 486 Nil Earnings from LEL to ST 190 0% % Calculation NI Payable Earnings from ST to UAP % Earnings from UAP to UEL Earnings above UEL Rebate (If applicable) Total Employer NI Contributions Cumulative Employer NI Contributions

7 Payslip Employee Graham Watkins Date 29/05/15 Payments Deductions Cumulative : p : p : p Basic pay: Income Tax: Gross pay: Overtime: NIC: Pay for Tax purposes: Bonus: Pension: Tax: SMP: AVC: Employees NIC: SSP: Charitable Giving: Employers NIC: SPP: Loan Employee Pension (Inc AVCs): Commission: Social Club Employer Pension Arrears: AEO Charitable Giving: Admin Fee Student Loan Total Gross Pay: Total Deductions: Net pay: NI Number: JD987234D Tax code: 1060L 7

8 Task 3 Gross Pay Calculator p Monthly Salary Daily Salary Adjustments to Pay ( + or -) Statutory Payments Gross pay for pay period Cumulative gross pay Voluntary Deductions Employee s Pension due for Pay Period 3% Employee s AVC due for Pay Period Charitable Giving due for Pay Period Employee s Cumulative pension year to date Employee s Cumulative AVC year to date Cumulative Charitable Giving year to date Employer Contributions Employer s Pension due for month 3% Employer s Cumulative Pension - year to date Tax Allowable Deductions GAYE Total Tax Allowable Deductions

9 Tax code used K46 Pay Period 3 p Cumulative gross pay Less cumulative allowable deductions Cumulative pay for tax purposes Pay adjustment PLUS Cumulative taxable pay Tax calculation 20% @ 40% Cumulative tax due Tax due for month (50% rule 3650 / 2 = 1825 OK) Rounding Rules for National Insurance Calculations Only If the third decimal place is equal to or greater than 6, round up, otherwise round down. National Insurance Calculations NI table letter used A Gross Pay for NIC 3650 p Employee Calculations Earnings Up to Lower Earnings Limit 482 NIL Earnings from LEL to PT 186 0% Earnings Bands % Calculation NI Payable Earnings from PT to UAP % Earnings from UAP to UEL % Earnings above UEL 118 2% 2 36 Rebate (If applicable) Total NI Contributions Cumulative Employee NI Contributions Employer Calculations Earnings Bands Earnings Up to Lower Earnings Limit 486 NIL Earnings from LEL to ST 190 0% % Calculation NI Payable Earnings from ST to UAP % Earnings from UAP to UEL % Earnings above UEL % Rebate (If applicable) Total Employer NI Contributions Cumulative Employer NI Contributions

10 Payslip Employee Graham Watkins Date 30/06/15 Payments Deductions Cumulative : p : p : p Basic pay: Income Tax: Gross pay: Overtime: NIC: Pay for Tax purposes: Bonus: Pension: Tax: SMP: AVC: Employees NIC: SSP: Charitable Giving: Employers NIC: SPP: Loan Employee Pension (Inc AVCs): Commission: Social Club Employer Pension Arrears: AEO Charitable Giving: Admin Fee Student Loan Total Gross Pay: Total Deductions: Net pay: NI Number: JD987234D Tax code: K46 10

11 Task 4 SSP insufficient earnings must earn over LEL in order to qualify. Task 5 SMP Correct Documentation Sufficient Earnings Sufficient employment 11

12 Short Answer Section 1 None 2 A 3 0T W1/M1 4 A C 6 C 7 A 9% 8 Sufficient earnings, Sufficient Service, Correct documentation 9 D 10 Tick appropriate section on P45 and deduct as normal from final salary 11 Contractual, In writing 12 No - need documentary proof 13 Use P45 figure 14 B