Level 2 Certificate in Computerised Payroll for Business (QCF) (Accreditation number 601/0476/4

Transcription

1 Qualifications: Level 2 Certificate in Payroll (QCF) (Accreditation number 601/0477/6) Level 2 Diploma in Payroll (QCF) (Accreditation number 601/0478/8) Level 2 Certificate in Computerised Payroll for Business (QCF) (Accreditation number 601/0476/4 ASSIGNMENT 1 Unit 2407: Calculating Gross Pay QUESTION PAPER Sample Assessment Material Paper No: A0022(2) Written for Tax Year 2014/2015 Suggested time: 1 hour and 30 Minutes Suite 5, 20 Churchill Square, Kings Hill, West Malling,, ME19 4YU Tel: , Fax: , education@iab.org.uk 09/14

2 QUALIFICATION TITLE: IAB LEVEL 2 PAYROLL UNIT TITLE: CALCULATING GROSS PAY General information and instructions This Question Paper contains a set of 5 questions. You must answer ALL of the Questions: The following instructions should also be followed: 1 You must enter your Student Number, ULN (if applicable) and Name of Centre in the boxes provided on the front cover of this Booklet 2 On completion of the paper you must sign to say that this is your own unaided work 3 Suggested time for completion of this Assignment is 1½ hours 4 All answers are to be written in blue or black ink. Work is not permitted in pencil 5 The use of silent non-programmable calculators is permitted 6 An overall pass mark of 70% must be achieved in order to gain a pass for this Unit 7 The Question Paper has information and data printed on both sides of the pages, blank pages are noted as such PLEASE NOTE: This is a Sample Assessment paper and should not be used as a LIVE Assignment.

3 UNIT: CALCULATING GROSS PAY Scenario In this Assignment there are 5 questions relating to the calculation of gross pay. You will be expected to process statutory payments but you are not expected to calculate them at this Level. In order to complete the assignment you will undertake the role of the payroll clerk working for Buckley Bakers Ltd, a small local bakers shop. The company is owned by Jennifer Buckley who employs 2 bakers and a baking assistant working on an hourly rate basis, a shop manager and 3 shop assistants who receive an annual salary The shop is open 6 days a week, Monday to Saturday, from 8.30am to 5.30pm. All employees, with the exception of the Junior Shop Assistant, work a basic week of 40 hours and are paid overtime at the rate of time and quarter for any hours in excess their contracted hours. If the contracted hours are exceeded then overtime would be paid at time and a quarter. The Junior Shop Assistant is still at college and works variable hours but is contracted to work a minimum of 8 hours a week The Bakery Apprentice attends college one day a week and is paid a basic 8 hours for the day All employees are entitled to 1 hour for lunch (unpaid) when working for a minimum of 6 hours Jennifer Buckley pays all employees (except the Junior Sales Assistant), a sales bonus based on the previous month s sales figures. The weekly paid employees receive their bonus on the first pay day following 15 th of the month, the monthly paid employees receive their bonus at the end of the month TO ENSURE ACCURATE CALCULATIONS YOU SHOULD USE THE FOLLOWING RULES FOR MONTHLY PAID EMPLOYEES: All monthly payments are calculated as 1/12 of Annual Salary All weekly payments are calculated as 1/52.14 of Annual Salary All daily payments are calculated as 1/5 of a Weekly Salary All calculations should be rounded up to 2 decimal places if the 3 rd decimal place is or above Jennifer Buckley has put together a simple Pay Scale for her employees, which is given on the next page. IAB Level 2 Payroll. Assignment 1; 2014/2015 Tax Year (Sample Assessment material) 1

4 Pay Scales Buckley Bakers Ltd PAY SCALE as at 1 st March 2014 HOURLY PAID EMPLOYEES Grade Job Description Hourly Rate B1 Head Baker B2 Baker 9.50 BA1 Bakers Assistant 7.80 SA3 Junior Shop Assistant 6.50 AP1 Apprentice 2.65 SALARIED EMPLOYEES Job Description Annual salary SM1 Shop Manager 20, SA1 Senior Shop Assistant 19, SA2 Shop Assistant 18, SALARIED EMPLOYEES BB010 9 th June 1982 Samantha Miller 1 st October Augustus Rd Sandiland ME15 4QF Female Married 1000L AB263045C Salary per annum: Sales Bonus SM1 20, % of previous month's Gross Job description: Shop Manager Additional pay: Receives an allowance of 40 per month for being the designated key holder 2 IAB Level 2 Payroll. Assignment 1; 2014/2015 Tax Year (Sample Assessment material)

5 UNIT: CALCULATING GROSS PAY BB th September 1977 Pauline Laycock 15 th November Newtown Road Sandiland ME15 5RB Female Single 980L NA116392D Salary per annum: Sales Bonus SA1 19, % of previous month's Gross Job description: Senior Shop Assistant Additional pay: NIL BB th December 1952 Andrew Bayer 1 st July Haviland Court Milton ME14 3PR Divorced 1070L JN122135C Salary per annum: Sales Bonus SA2 18, % of previous month's Gross Job description: Shop Assistant Additional pay: NIL WEEKLY PAID EMPLOYEES BB th March 1996 Niall Michaelson 1 st August Maple Terrace Sandiland ME15 4RP Single 1000L CA424256B SA3 Hourly Rate annum: 6.80 Sales Bonus Does not receive a bonus Job description: Junior Shop Assistant Working pattern: Contracted to work 8 hours a week Additional pay: NIL IAB Level 2 Payroll. Assignment 1; 2014/2015 Tax Year (Sample Assessment material) 3

6 BB04 Hourly Rate: Productivity Bonus Andretti Biancchi 18 Morlands Close Milton ME14 3TP B % of previous month's Gross Job description: Head Baker 15 th March st October 2010 Married 1004L CA424256B Additional pay: Receives an allowance of per week as the Designated first-aider BB07 Hourly Rate: Productivity Bonus Milo McDermot Flat 4, The Grange Sandilands ME15 5PL B % of previous month's Gross 21 st August st May 2011 Single 1000L BA345467C Job description: Baker Additional pay: Nil BB11 Hourly Rate: Productivity Bonus Nadine Suammi 13 Compton Road Milton ME14 4EP AP % of previous month's Gross 21 st August st July 2012 Single 944L Job description: Apprentice Baker CD312213A including the day spent at college for which she is paid. Additional pay: Attends college 1 day a week and receives expenses paid through the payroll You should now complete ALL of the following questions 4 IAB Level 2 Payroll. Assignment 1; 2014/2015 Tax Year (Sample Assessment material)

7 UNIT: CALCULATING GROSS PAY QUESTION 1 It is the 8 th April 2014 and you are preparing the Gross pay calculation for the weekly paid employees for payment on the 11 th April Nadine has put in a claim for college expenses of which has been authorised for payment by Jennifer. This payment should be shown separately on the Gross Pay summary table as it is accounted for as training expenditure and not labour costs Andretti Biancchi attended a first aid refresher course during the week for which he will paid 7 hours at basic pay. He also has expenses of authorised for payment by Jennifer Buckley Required: Using the information listed above and on the employee record cards complete; The Total Hours column in the summary table on page 1 of your Answer Booklet The Hours worked analysis table on page 1 of your Answer Booklet The Gross Pay summary table on page 2 of your Answer Booklet The total gross pay and taxable gross pay for Andretti Biancchi and Nadine Suammi QUESTION 2 Jennifer Buckley has agreed to give a cost of living rise of 2% for weekly paid employees. This will increase both their basic hourly rate and their overtime rate. The pay rise will be paid in the next pay-run (18 th April 2014) but is to be backdated to 1 st April Jennifer has also agreed to give a cost of living rise of 2.25% for monthly paid employees to also take effect from 1 st April and to paid at the end of April. Required Using the information given above and on the employee payroll record card complete the analysis table on page 3 of your answer booklet QUESTION 3 It is the 16 th April 2014 and you are preparing the Gross pay calculation for the weekly paid employees for payment on the 18 th April Nadine s college expenses for this week amount to but this has not been authorised by Jennifer as Nadine failed to provide receipts Sales for March 2014 totalled 15,420 IAB Level 2 Payroll. Assignment 1; 2014/2015 Tax Year (Sample Assessment material) 5

8 Required: Using the Timesheets given on page 4 of your Answer Booklet and the information on the employee record cards; Calculate the hours worked for each employee split between basic and overtime hours Calculate the sales bonus due to each weekly paid employee Complete the Gross Pay summary table on page 5 of your Answer Booklet REMEMBER: Rates of pay have risen and back-pay should be included in Gross Pay Summary QUESTION 4 It is the 22 nd April 2014 and time to calculate the Gross pay for payment to the weekly paid employees on the 25 th April 2014 taking into account the information below. Andretti Biancchi will be starting two weeks holiday as from the 25 th April. Jennifer has agreed to pay Andretti two weeks basic pay in advance as holiday pay. Andretti will not receive his first aider allowance while he is on holiday. Milo McDermot was absent from work due to sickness. He took sick leave from Monday 14 th April Thursday 17 th April inclusive and returned to work on the Friday. This was a linked period of illness. Milo is to receive 4 days sick pay at the rate of per day Nadine has now produced receipts for her college expenses for last week and her claim of has now been authorised by Jennifer along with an expense claim for this week of Required: Using the employee record cards and the information listed above complete the Gross Pay summary sheet on page 6 of your Answer Booklet Note the taxable gross pay for Nadine Suammi QUESTION 5 It is the 28 th April 2014 and time to calculate the Gross pay for payment to the monthly paid employees on the 30 th April 2014 taking into account the information below. Samantha Miller, Pauline Laycock and Andrew Bayer all came into work on Sunday 20 th April to prepare the shop prior to a Health and Safety inspection the following morning. Jennifer Buckley agreed to pay them 1½ days pay based on their salaries for this work. March Gross sales were 15, Required: Using the employee record cards and the information listed above complete the Gross Pay summary sheet for the monthly paid employees on page of your Answer Booklet. REMEMBER: The salaries of each employee have now risen. END OF ASSIGNMENT 6 IAB Level 2 Payroll. Assignment 1; 2014/2015 Tax Year (Sample Assessment material)