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

Size: px

Start display at page:

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

Ralph Carter
5 years ago
Views:

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

1 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 2 Award in Applied Payroll QCF (Accreditation number 500/9345/9) IAB ID 280 Examination: Units: Unit ID 261: Computerised Payroll Theory (D ) Unit ID 260: Computerised Payroll Skills (T ) January 2011 QUESTION PAPER Time Allowed: 2½ hours Suite 30, 40 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 2010/2011 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. You are permitted to access the HMRC website and the HMRC CD ROM during this exam. Scenario Pilgrim School is a private school in. You are the Payroll Clerk for Pilgrim School and it is your task to process the payroll for the administrative and caretaking staff. Pilgrim School operates a 35 hour working week Monday to Friday, with an hour for lunch (unpaid). Overtime is available Monday to Friday only and cannot be claimed until the employee has worked a full 35 hours. Overtime is paid at the rate of time and a quarter (1.25), with the overtime hourly rate being calculated to 2 decimal places. Sometimes at weekends the school is used for special occasion hire. If members of staff agree to open and close the school on these days they are paid a 50 unsocial hours key holder allowance (shown as Opened on their timesheets). All holiday days are to be paid at 7 hours at the employee s basic hourly rate. All weekly employees are paid by cheque, every Friday one week in arrears. The last cheque run finished on cheque number Pilgrim School requires their payroll to be updated and backed up after every processing date and that their employee s payslips are fully itemised with each type of payment and deduction. Level 2 Payroll: Computerised Payroll End Exam Jan 2011 Final (2010/2011) 1

3 Company Information: Name Address Pilgrim School Church Way ST10 7YT Telephone: 0 Fax Tax Office Tax Reference P_School@gmail.co.uk Derby 701/DY798 : Employees can choose to donate to a Payroll Giving scheme, accepted by HMRC as a Net Payment Approved Scheme, at the rate of 10 per week. Pilgrim School pay Paternity pay at full pay and are classed as a small employer (students must note that there is not enough data to enter the Statutory Paternity Pay in any other manner than by using the Manual Entry Function). Employees are encouraged to join the Sports and Social Club at the deduction of 1.50 per week. Employees have the option of joining the private health scheme. Contributions are different per employee and are based on age and pre existing medical conditions. The employee record cards show the Year to Date figures as at the 9 th July 2010, plus all relevant employee information. 2 Level 2 Payroll: Computerised Payroll End Exam Jan 2011Final (2010/2011)

4 Employee Information Year to Date Figures Total Gross Pay Gross Pay for NIC Gross Pay for Tax Tax Paid PSU108 John Whale 63 Grey Avenue ST10 7RJ Hrs/Wk (Monday to Friday) 29 th March st Jan 2000 Male Widowed 647L BB B Up to LEL LEL to ET ET to UAP UAP to UEL 0.00 Employee s Net NIC Employer s Net NIC Pays 10 per week into a Private Health Scheme Year to Date Figures Total Gross Pay Gross Pay for NIC Gross Pay for Tax Tax Paid PSU122 Casey Trent 912 Star Way ST10 3EU Hrs/Wk (Monday to Friday) 19 th July st March 2001 Female Married K176 JJ C Up to LEL LEL to ET ET to UAP UAP to UEL 0.00 Employee s Net NIC Employer s Net NIC Pays 1.50 per weeks into a sports and social club Level 2 Payroll: Computerised Payroll End Exam Jan 2011 Final (2010/2011) 3

5 Employee Information (continued) Year to Date Figures Total Gross Pay Gross Pay for NIC Gross Pay for Tax Tax Paid PSU167 Roxanne Parr 11 Gyrne Way ST10 2DT Hrs/Wk (Monday to Friday) 11 th July th October 2005 Female Married BR/wk1 YT A Up to LEL LEL to ET ET to UAP UAP to UEL 0.00 Employee s Net NIC Employer s Net NIC Donates to the Payroll Giving Scheme. Year to Date Figures Total Gross Pay Gross Pay for NIC Gross Pay for Tax Tax Paid PSU432 Tracey Holmes 4 Thames Way Hilton DE65 7YT Hrs/Wk (Monday to Friday) Up to LEL LEL to ET ET to UAP UAP to UEL Employee s Net NIC Employer s Net NIC Received SL1 6 th April th July st December 2009 Female Single 647L JJ B Level 2 Payroll: Computerised Payroll End Exam Jan 2011Final (2010/2011)

6 You are required to complete all of the following Tasks. TASK 1 Set up the company information ensuring that the software is set up for the Income Tax and NI parameters for tax year 2010/2011 and that your student number is entered after the company name for identification purposes. Enter all of the employees, their personal details and their pay and deductions elements, onto the computerised system. Candidates are required to compare the legislative information with that given in the Answer Booklet. If the information shows any discrepancies the parameters should be corrected before continuing and inform the invigilator. Print reports detailing: Income Tax bandwidths/rates NI Rates for Tax Year 2010/2011 Company details. Employees details (personal) Employee details (cumulative) NI Contributions (to date) 20 marks TASK 2 Using the information given on page 2 of your Answer Booklet for hours worked week ending 9 th July 2010 it is now your job to process the payroll for payment on 16 th July The following should also be taken into consideration: A change of tax code has been received for John Whale. His new code of 456L Wk1 will take immediate effect. We have also received a CA4140 for Roxanne Parr. Process the Payroll as at 16 th July marks Print out a Payroll Summary(ies) to show all deductions, Employers NIC and Net Pay (Candidates should a chose landscape page set-up if available.) Print a Cheque Analysis report. Level 2 Payroll: Computerised Payroll End Exam Jan 2011 Final (2010/2011) 5

7 TASK 3 It is now time to calculate the Gross Pay due to each weekly paid employee, to be paid on 23rd July Using the information given on page 4 of your Answer Booklet and the data below for hours worked week ending 16 th July 2010 please complete the tables given:- All overtime has been approved. A new employee called Sandra Ow-Young has joined the company on an apprenticeship. She is to be paid the Apprenticeship National Minimum Wage for her age at the rate of 2.50 per hour. Tuesdays is her college day and she must be paid for attendance. Please find her details below and her P46 on page 3 of the answer booklet. Roxanne Parr is taking 3 weeks holiday to Australia. It is Pilgrim School policy to pay holiday pay in advance. John Whale has had a pay increase approved. His basic pay is to increase by 1.00 per hour. PSU612 Sandra Ow-Young 129 Jonas Road ST10 7YU Apprenticeship NMW 2.50 ph 35 Hrs/Wk (Monday to Friday) paid weekly in arrears by cheque. 2 nd Aug th July 2010 Female Single To be determined NM C Complete the timesheet for week ending 16 th July and complete the Gross Pay calculations using the table given on page 4 of your answer booklet. 18 marks TASK 4 It is now time to process the payroll for week ending 23 rd July, taking the following into consideration: John Whale has added his children to the private health scheme. This doubles his weekly contribution. Sandra Ow-Young is reimbursed for her travelling expenses to college. You have been given authorisation to pay her bus fare of Process the payroll for all the employees as at 23 rd July Print payslips for all employees showing breakdown of all payments. Backup your data using the filename Pilgrim School 23 rd July 2010 in a suitable directory marks 6 Level 2 Payroll: Computerised Payroll End Exam Jan 2011Final (2010/2011)

8 TASK 5 It is now time to calculate the Gross Pay due to each weekly paid employee, to be paid on 30 th July Using the information given on page 5 of your Answer Booklet and the data below for hours worked week ending 23 rd July 2010 please complete the tables given:- All overtime has been approved. Casey Trent is taking PATERNITY LEAVE for a one week block as she is ADOPTING her grandchildren due to a family bereavement. All procedures have been followed and the correct forms completed and evidence seen. (we suggest you enter the figure given to you manually). If your payroll software asks for dates we suggest that you use 17 th July 23 rd July for leave and 16 th July for last date of working. Using the Timesheet for hours worked during week ending 23 rd July 2010, complete the table given on page 5 of your answer booklet showing the total hours worked and the calculation of gross pay. 11 marks TASK 6 It is now time to process the payroll for week ending 30th July Process the payroll for all the employees as at 30 th July Backup your data using the filename Pilgrim School 30 th July 2010 in a suitable directory. Print P32 for July only after you have backed up and processed the payroll. 3 marks TASK 7 When the payroll run for w/ending 30 th July was checked, it was discovered that some information relating to Sandra Ow-Young had not been acted upon. Please restore the payroll data and correct the payroll taking the following into consideration: Sandra Ow-Young left college early on the Tuesday and therefore only did a half day. We have been instructed to deduct her 4 hours from her pay and the school has asked that this be shown separately on her payslip as an unauthorised absence marks Restore the Pilgrim School 30 th July 2010 data backup that you made in Task 6 to your computerised payroll system and print a Backup and Restore Log (first page(s) only) Re-process the payroll for all the employees as at 30 th July 2010 and print out Payroll Summary(ies) to show all deductions, Employers NIC and Net Pay. Print a Payslip for Sandra Ow-Young only. Level 2 Payroll: Computerised Payroll End Exam Jan 2011 Final (2010/2011) 7

9 TASK 8 A nearby school has recently had a fire on the premises. The school has asked you to advise them of any steps that they can take to minimise the risk of loss of payroll data should a fire occur. In the space provided on page 6 of your answer booklet you should briefly outline the following: 1 Two steps that can be taken to minimise the loss of payroll data due to fire 2 Two other potential risks to data security (not necessarily fire related) 3 Two basic aspects of the Data Protection Act which apply to either of these situations or the processing of the payroll 9 marks TASK 9 As you are aware Sandra had to have hours deducted from her due to an unauthorised absence. Please explain why the computer makes this process easier along with any advantages and disadvantages that you noticed. 4 marks TASK 10 In the space on page 8 explain the timeline for making payments by electronic means to HMRC for July s PAYE payment. You do not need to give any figures but marks will be awarded for correct dates used. 4 marks TASK 11 Following the instructions given complete the passage on page 8 of your Answer Booklet. 8 marks 8 Level 2 Payroll: Computerised Payroll End Exam Jan 2011Final (2010/2011)

QUESTION PAPER. Exam ID 263

QUESTION PAPER. Exam ID 263 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