NVQ/SVQ Level 2 in Payroll Administration Determining Net Pay (DNP) (2003 standards) June 2005

Transcription

1 NVQ/SVQ Level 2 in Payroll Administration Determining Net Pay (DNP) (2003 standards) June 2005 SUGGESTED ANSWERS AAT 154 Clerkenwell Road, London EC1R 5AD, UK Tel: +44 (0) Fax: +44 (0) SA 5116 DNP

2 Calculation for Task 1 Avril DeVismes Week /2005 gross to net pay Basic pay Overtime payment Adjustment for leave deduction Total gross pay, week = Pension contribution for week % = Charitable giving for week Tax Calculation Tax code used 298L Tax basis Cumulative Cumulative gross pay Less cumulative allowable deductions = Cumulative pay for tax purposes = Adjustment for tax code Cumulative net taxable pay = Tax calculation : = Continued Lower Rate Relief 1 = 4.53 Continued Tax due = Cumulative tax due Less tax already paid Nil Tax due for week National Insurance Contributions Calculation NI table letter used F Employee s contributions payable Tables or percentage Employer s contributions payable Tables or percentage

3 Payslip for Week /2005 Harris Information Systems Ltd. Pay Advice Employee Avril DeVismes Date 9 April 2004 Payments Basic pay: Deductions Income Tax: Cumulatives Gross pay: Overtime: NIC: Pay for Tax purposes: Adjustments: Tax: Employee s NIC: Employer s NIC: Total Gross Pay: Total Deductions: Net pay: NI Number: SD593286D Tax code: 298L 3

4 Calculation for Task 1 Avril DeVismes Week /2005 gross to net pay Basic pay Overtime payment Total gross pay week = Cumulative gross pay = 1, Pension contribution for week % = Pension contribution, year to date = Charitable giving for week Charitable giving, year to date = Tax Calculation Tax code used 298L Tax basis Cumulative Cumulative gross pay 1, Less cumulative allowable deductions = Cumulative pay for tax purposes 1, = Adjustment for tax code Cumulative net taxable pay = Tax calculation : = Continued Starting Rate Relief, week 2 = 9.05 Cumulative tax due = Less tax already paid Tax due for week = National Insurance Contributions Calculation NI table letter used F Employee s contributions Tables = or percentage Employer s contributions Tables = or percentage

5 Payslip for Week /2005 Harris Information Systems Ltd. Pay Advice Employee Avril DeVismes Date 16 April 2004 Payments Basic pay: Deductions Income Tax: Cumulatives Gross pay: 1, Overtime: NIC: Pay for Tax Purposes: Tax: Employee s NIC: Employer s NIC: Total Gross Pay: Total Deductions: Net pay: NI Number: SD593286D Tax code: 298L 5

6 Calculation for Task 1 Avril DeVismes Week /2005 gross to net pay Basic pay Overtime payment Holiday pay = Total gross pay for week = 1, Cumulative gross pay 1, , = 2, Pension contribution for week 3 1, % = Pension contribution, year to date = Charitable giving for week = Charitable giving, year to date = Tax Calculation Tax code used 342L Tax basis Cumulative Cumulative gross pay 2, Less cumulative allowable deductions = Cumulative pay for tax purposes 2, = 2, Adjustment for Tax code Week 5 allowance = Cumulative net taxable pay 2, = 1, Tax calculation 1, Continued Total Continued Starting Rate Relief, week 5 = Cumulative tax due = Less tax already paid Tax due for week

7 National Insurance Contributions Calculation NI table letter used F Employee s contributions payable Method 1 Method 2 Week Week Week Total due Employer s contributions payable Week Week Week Total due

8 Payslip for Week /2005 Harris Information Systems Ltd. Pay Advice Employee Avril DeVismes Date 23 April 2004 Payments Basic pay: Deductions Income Tax: Cumulatives Gross pay: 2, Overtime: NIC: Pay for Tax purposes: 2, Holiday pay: Tax: Employee s NIC: Employer s NIC: Total Gross Pay: 1, Total Deductions: Net pay: NI Number: SD593286D Tax code: 342L 8

9 Calculation for Task 1 Avril DeVismes Week /2005 gross to net pay Basic pay Arrears pay 1, Total gross pay, week , = 1, Cumulative gross pay 2, , = 4, Pension contribution for week 6 1, % = Pension contribution, year to date = Charitable giving for week Charitable giving, year to date = Tax Calculation Tax code used 342L Tax basis Cumulative Cumulative gross pay 4, Less cumulative allowable deductions = Cumulative pay for tax purposes 4, = 3, Adjustment for tax code Cumulative net taxable pay 3, = 3, Tax calculation 3, Continued Continued Starting Rate Relief, week Cumulative tax due Less tax already paid Tax due for week =

10 National Insurance Contributions Calculation NI table letter used F Employee s contributions payable = Exact percentage = Employer s contributions payable = Exact percentage =

11 Payslip for Week Harris Information Holdings Ltd. Pay Advice Employee Avril DeVismes Date 14 May 2004 Payments Basic pay: Deductions Income Tax: Cumulatives Gross pay: 4, Arrears pay: 1, NIC: Pay for Tax purposes: 3, Tax: Employee s NIC: Employer s NIC: Student Loan: Student Loan: Total Gross Pay: 1, Total Deductions: Net pay: 1, NI Number: SD593286D Tax code: 342L 11

12 Task 2.1 (a) No (b) Home addresses are Personal Data under Data Protection law and as such must only be used for specific and relevant purposes. Their use for sending such a document is unlikely to be considered relevant unless employees have given specific permission for it. Alternative answer: (a) Yes (b) Such disclosures are permitted if the employee is aware that the company intends to do this and has given express permission for it. Task 2.2 Any three of: Identify gross pay Fully itemised deductions Shows net pay If net pay is split and paid to different places, that this is clearly shown If deductions are not itemised, that a separate list is provided The facility is secure Measures are taken to avoid disclosure Employee has given authority for it Received on or before pay day. Task 2.3 (a) No (b) The amount of AVC takes the total contributions above 15% and this is not permitted in current Inland Revenue rules. (c) Task 2.4 (a) 92% (b) 104G% 12

13 Task 2.5 (a) Added (b) Not used (c) Added (d) Not used (e) Deducted Task 2.6 (a) Approved Agency (b) Monthly (c) No limit Task 2.7 (a) No, Yes, Yes, No, Yes (b) No (c) (i) No (ii) The net sum is below the Protected Earnings Rate 13

14 Task 2.8 (a) Gross Pay (b) Any three of: Under 16 years of age Over State pension age Pension scheme type Married or widowed woman entitled to reduced rate Another job with a deferment certificate. Task 2.9 Any three of: Birth Certificate Certificate of Age Exception number CA4140 Certificate of Age Exception number CF384 Passport. Task 2.10 (a) Any three of the following totals: Gross pay Wages control PAYE Deductions (total or individual) Income tax NIC. (Other terms considered on merit) (b) Yes, Yes, Yes, No, No, Yes. 14