QUESTION PAPER. Exam ID 263

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Exam ID 263 QUESTION PAPER Qualifications: Level 2 Award in Computerised Payroll QCF (Accreditation number 500/9344/7) IAB ID 270 Level 2 Certificate in Payroll QCF (Accreditation number 500/9263/7)

1 Exam ID 263 QUESTION PAPER Qualifications: Level 2 Award in Computerised Payroll QCF (Accreditation number 500/9344/7) IAB ID 270 Level 2 Certificate in Payroll QCF (Accreditation number 500/9263/7) IAB ID 250 Level 2 Award in Applied Payroll QCF (Accreditation number 500/9345/9) IAB ID 280 Examination: Unit 260: Computerised Payroll Skills (T ) January 2013 Time Allowed: 2½ hours Suite 5, 20 Churchill Square, Kings Hill, West Malling, Kent ME19 4YU Tel: , Fax: , education@iab.org.uk

2 General Instructions Your answers should be written in either black or blue ink. Your work should not be completed in pencil. Two marks will be deducted if your work is not neat and well presented. All tasks should be answered using a payroll software package setup for the 2012/2013 Tax Year. PAYE deductions should be calculated using the income tax legislation as at April 6 th National Insurance Contributions should be calculated using either NIC Table A (CA38) or NIC Table C (CA41) as appropriate. Scenario You are a Payroll Clerk working for D&M Roller Shutters a small manufacturing company specialising in making and fitting industrial roller shutter doors. The company is based in Buckden, St Neots. It is your task to process the payroll for the company and update any internal payroll records. The business employs a sales manager, a fitter and 2 welders. All employees are paid by cheque on 28 th of each month. All staff are contracted to work from Monday to Friday unless you are specifically told otherwise. The sales manager receives a monthly salary of 2, and a 2% sales bonus based on the previous month s sales. The welders each receive a monthly salary of 1, and a productivity bonus of per door providing first time quality standards are met. The fitter receives a monthly salary of 1, The Company offers an Out of Hours call out service to its customers for emergency door repairs. Employees are paid per call out fee for emergency calls after 6pm Monday to Friday. Employees are paid for Saturday and Sunday emergency calls. Employees have the opportunity to contribute to a HMRC approved charity scheme. 1 IAB Level 2 Payroll. End Exam 2 (OD1) 2012/2013 Tax Year

3 Company Information: UNIT: COMPUTERISED PAYROLL SKILLS Name Address D&M Roller Shutters 1 High Street Buckden St Neots PE19 5XA Telephone: Fax sales@d&mrollershutters.co.uk Tax Office Shipley Tax Reference 987/B4545 : D&M Roller Shutters makes SSP/SMP/SAP/SPP up to basic for monthly paid staff only. D&M Roller Shutters is Eligible for Small Employers Relief. D&M Roller Shutters offers employees the opportunity to take out an interest free company loan re-payable over a 12 month period. D&M Roller Shutters has a policy of updating and backing up all payrolls that they process after every processing date. You should ensure that you comply with this policy. It is Monday 4th June The employee record cards show the Year to Date figures as at 28 th of May 2012 (Month 2), plus all relevant employee information. Candidates should not check YTD figures. Without knowing the employees' circumstances throughout the Tax Year it is impossible to check the YTD figures accurately. The candidates' exam papers are marked based on the belief that they have used the YTD figures as stated. IAB Level 2 Payroll. End Exam 2 (OD1) 2012/2013 Tax Year 2

4 Employee Information: Job Title: Year to Date Figures Total Gross Pay Gross Pay for NIC Gross Pay for Tax Tax Paid DM001 Lorraine Bowman 13 Chester Road Eaton Socon St Neots PE19 8YT Sales Manager Up to LEL LEL to PT PT to UAP UAP to UEL Employee s NIC Employer s NIC 21 February April 2006 Female Married K45 AB B Annual Salary: 24, Donates a month to a payroll giving scheme. Monthly sales bonus of 2.0% of the previous month s sales. Job Title: Year to Date Figures Total Gross Pay Gross Pay for NIC Gross Pay for Tax Tax Paid DM002 Pawel Krzysztofik 16A Bridge Street Cambridge CB2 1UF Welder Up to LEL LEL to PT PT to UAP UAP to UEL Employee s NIC Employer s NIC 17 April May 2008 Male Single 810L AA B Annual Salary: 14, We received a SL1 for Pawel on 1 May Receives Productivity Bonus of per door 3 IAB Level 2 Payroll. End Exam 2 (OD1) 2012/2013 Tax Year

5 Employee Information (Continued): UNIT: COMPUTERISED PAYROLL SKILLS Job Title: Year to Date Figures Total Gross Pay Gross Pay for NIC Gross Pay for Tax Tax Paid DM004 Ayodeji Aboyade 12 Clover Road Eaton Socon St Neots PE19 8HD Welder Annual Salary: 14, Receives a Productivity Bonus of per door. Up to LEL LEL to PT PT to UAP UAP to UEL Employee s Net NIC Employer s Net NIC 20 March June 2008 Male Married 810L CB A Job Title: Year to Date Figures Total Gross Pay Gross Pay for NIC Gross Pay for Tax Tax Paid DM006 Mark Campbell 10A Denton Village Peterborough PE7 3SD Fitter Up to LEL LEL to PT PT to UAP UAP to UEL Employee s NIC Employer s NIC 20 June April 2009 Male Single 810L CB B Annual Salary: 19, Took out a company loan on 10 April 2012 for 1, First repayment of was deducted in May IAB Level 2 Payroll. End Exam 2 (OD1) 2012/2013 Tax Year 4

6 You are required to complete the following Tasks. TASK 1 Set up the company information (adding your Student Number after the company name), ensuring that the software is set up for the Income Tax and NI parameters for tax year 2012/2013. Candidates are required to compare the legislative information with that given in the Answer Booklet. If the information shows any discrepancies notify the Invigilator. Enter all of the employees, their personal details and their pay and deductions elements, onto the computerised system. Print reports detailing: Income Tax bandwidths/rates NI Rates for Tax Year 2012/2013 Company Details (personal) (cumulative) NI Contributions - TD 19 marks TASK 2 It is time to process the payroll for payments on the 28 th of June 2012 (Month 3). A Gross Pay summary sheet detailing the payments to the monthly employees can be found on page 2 of your Answer Booklet. You have received a P6 from HMRC informing you of a change of tax code for Pawel Krzysztofik. His new code of 780L will take effect immediately. The company has employed a trainee fitter on a casual basis to help with the workload during busy times of the month. Jonathan Adams who is 17 joined the company on 4 June He will be paid in cash at the end of each month for the hours he works at the minimum wage rate of 3.68 per hour. Make sure he does not receive notes as part of his pay. His details are on the following page. A copy of his P45 can be found on page 3 of your answer booklet. You have received a CA4140 for Mark Campbell. 5 IAB Level 2 Payroll. End Exam 2 (OD1) 2012/2013 Tax Year

7 Paid 3.68 per hour. DM008 Jonathan Adams 38 Wesleyan Road Peterborough PE1 3RW 6 March th June 2012 Male Single AB A Enter Jonathan Adam s personal details and his pay and deductions elements, onto the computerised system. Print out an (Personal) report for Jonathan Adam s only. Process the payroll for payment on the 28 th of June 2012 (Month 3). Print payslip (with loans) for Mark Campbell only. Print out a cheque analysis report using the next available cheque number. The last cheque number issued was Print out a cash analysis. Print out a Payroll Summary Parts 1 & 2 (landscape) for all employees. 9 ½ marks TASK 3 It is the 30 th of June your have been asked to submit the cumulative Cost of Wages for the first quarter of the 2012/2013 financial year (April 2012 to June 2012). You should be aware that Mark Campbell was off sick for two weeks in May (7 th 18 th inclusive) this year, and was paid SSP of The Company s total National Insurance contribution for the month of May was Print out an Employer Cost TD report. In the space on page 4 of your Answer Booklet show your calculation of the required Cost of Wages. 9 marks IAB Level 2 Payroll. End Exam 2 (OD1) 2012/2013 Tax Year 6

8 TASK 4 It is the 25 th July and time to prepare for the monthly pay run for payment on the 28 th July You have received the following information: In June door sales were 18, Jonathan Adams had to attend a day s training on Manual Handling Risk Assessment on Saturday 7 th July The company has agreed to pay him 7 hours at double his hourly rate for attending this course. Jonathan Adams has worked 130 hours this month. Mark Campbell was off sick from 18 th July 2012 returning to work on the 25 th July Mark has not been off sick within the last 8 weeks. It has been calculated that Mark s relevant average weekly earnings are and that he is eligible to receive in SSP. You have received an Attachment of Earning Order for Ayodeji Aboyade. He has to pay per month for child support. Pawel Krzysztofik has decided to contribute to payroll giving at the rate of per month. Jonathan Adams attended 3 emergency week-end call outs to customers and Mark Campbell attended 2 mid-week emergency calls. The Sales Manager, Lorraine Bowman has handed in her notice and will be leaving on 31 July Complete the Productivity Bonus Table on page 5 of your Answer Booklet. Use this and the other information you have been given to complete the Gross Pay Summary Table on page 5 of your Answer Booklet. 9 ½ marks TASK 5 It is now the 28 th July 2012 and time to process the payroll for the monthly paid employee s using the data in the Gross Pay Summary sheet completed in Task 4. Process the monthly Payroll as at 28 th July 2012 for Month 4. Print payslips for Ayodeji Aboyade and Mark Campbell. Print out a Payroll Summary Parts 1 & 2 (landscape) for all employees. Backup your data. Print a (loans) report Mark Campbell showing the amount paid to date. Print out a P45 for Lorraine Bowan. 10½ marks 7 IAB Level 2 Payroll. End Exam 2 (OD1) 2012/2013 Tax Year

9 TASK 6 UNIT: COMPUTERISED PAYROLL SKILLS It is still the 28 th July 2012 and you have been informed that Pawel Krzysztofik attended 3 emergency weekend call outs during the month. Pawel is owed a total of (3 x 75.00) and you have been asked to correct this month s payrun before it is paid. Restore your most recent backup from the 28 th July 2012 Monthly payrun. Re-process the payroll for payment for Pawel Krzysztofik paying him the call out fee. Print a payslip for Pawel for month 4. 2 ½ marks IAB Level 2 Payroll. End Exam 2 (OD1) 2012/2013 Tax Year 8

Units: Unit ID 261: Computerised Payroll Theory (D ) Unit ID 260: Computerised Payroll Skills (T )

Units: Unit ID 261: Computerised Payroll Theory (D ) Unit ID 260: Computerised Payroll Skills (T ) Exam ID 263 Qualifications: Level 2 Award in Computerised Payroll QCF (Accreditation number 500/9344/7) IAB ID 270 Level 2 Certificate in Payroll QCF (Accreditation number 500/9263/7) IAB ID 250 Level