Payroll Workbook 2 - UKDMA

Sage Payroll Level 2 – Osborne Training Sage Payroll Level 2 Workbook This Workbook complies with the following Qualifications: Sage Computerised Payroll Level 2 Certification (Sage UK) Level 2 Award in Computerised Payroll QCF: 60104752 General Instructions 1. All tasks should be answered using a payroll software package setup for the 2016/17 Tax Year 2. PAYE deductions should be calculated using the income tax legislation as at April 6 2016 th

Sage Payroll Level 2 – Osborne Training Scenario UK Digital Marketing Agency is a new company offering digital marketing services to small and medium sized businesses. The company started trading on 1 July 2016. You are responsible for processing the payroll for this new business. Four employees have been recruited to start working for the Agency, 1 Manager, 1 Marketing officer, 1 Sales Executive and 1 Administrator. th All Employees are paid by cheque on 28 of each month. Additional Information:  Employees have the opportunity to join the Earner’s Savings Plan with contributions payable at the rate of £50.00 per month.  Employees have the opportunity to contribute to a HMRC approved charity scheme.  The Company offers a stakeholder pension to employees. Employees who opt to join the pension scheme contribute 5% of the basic salary per month and the employer contributes £60.00 per month.  All employees work Monday to Friday. Details of contracted hours are detailed on each employee’s record.  Overtime is only available to the part-time administrator.  Commission is payable at 3% of the salary to all employees when sales target is met. Commission is paid monthly in arrears.  For employees who are under 21, please use National Insurance Category M.  All relevant information relating to each member of staff is detailed on each employee’s record.  UK Digital Marketing Agency makes SSP/SMP/SAP/SPP up to basic for all employees. UK Digital Marketing Agency is Eligible for Small Employers’ Relief (SER).  UK Digital Marketing Agency 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. 2

Sage Payroll Level 2 – Osborne Training Company Information: Name UK Digital Marketing Agency Address 300 High Street Canary Wharf London E14 5AB Telephone: 0208 522 5689 Fax 0208 522 5688 Email [email protected] Tax Office Bournemouth Tax Reference 999/M3424 Accounts Office Ref: 999PP12312312 Bank Details: Company Bank NatWest plc Address 10 Crescent Road Sort Code: 50-45-25 London Account No: 58947589 SW4 8BH Account Name: UK Digital Marketing Agency E-Submissions Settings User ID: PLANTS Password: Testing456 Contact Details: Mr Neil Brown Telephone: 01865 222 2323 Email: [email protected] 3

Sage Payroll Level 2 – Osborne Training Employee Records: Employee Details Works Number: UD01 Date of Birth: 30 November 1965 Employee Name: Neil Brown Start Date: 01 July Address: 21 Tiffin Road 2016 Crawford Gender: Male CR34 8DJ Marital Status: Married NI Number: AB 315584 A Additional Information Job Title: Manager Contributes to the pension scheme Employment Type: Full time Contributes to the Earner’s Savings Annual Salary: £40,000.00 Plan Payment Method: Monthly by Cheque Contracted Hours: 37.5 per week Previous Employer Details P45 – Starting Declaration: Statement B Previous Employer Ref: 372/F3234 Date left employment: 30 June 2016 Tax Code at leaving: 1100L Month1 Employee Details Works Number: UD02 Date of Birth: 10 January 1998 Employee Name: Pradeep Kaur Start Date: 1 July 2016 Address: 14 Acton Street Gender: Female Acton Marital Status: Single W6 3ds NI Number: AB 723212 D Additional Information Job Title: Marketing Officer Contributes to the pension scheme Contributes £10 per month to a Payroll Employment Type: Full time Giving scheme Student Loan: Yes Annual Salary: £22,000.00 Payment Method: Monthly by Cheque Contracted Hours – 37.5 per week Previous Employer Details Total pay to date: 2800.00 P45 – Starting Declaration: Statement A Total tax to date: 30.02 Previous Employer Ref: 984/C8542 Student Loan: Yes Date left employment: 27 June 2016 Tax Code at leaving: 1100L 4

Sage Payroll Level 2 – Osborne Training Employee Records (Continued): Employee Details Works Number: UD03 Date of Birth: 14 September 1978 Employee Name: David Couchner Start Date: 1 July 2016 Address: 85 Tilbury Street Gender: Male Essex Marital Status: Single IG14 9HG NI Number: CB 851265 B Additional Information Job Title: Sales Executive Contributes to the Earner’s Savings Plan Employment Type: Full time Annual Salary: £21,000.00 Payment Method: Monthly by Cheque Contracted Hours 37.5 per week Previous Employer Details P46 – Starting Declaration: Statement C Employee Details Works Number: UD04 Date of Birth: 7 November 1965 Employee Name: Anna Ross Start Date: 1 July 2016 Address: 3 Niler Way Gender: Female Essex Marital Status: Divorced NI Number: BA 264146 B RM14 9BE Additional Information Job Title: Administrator Employment Type: Part time Annual Salary: £13,000.00 Overtime Rate: £15.00 per hour Payment Method: Monthly by Cheque Contracted Hours: 18 per week Previous Employer Details P46 – Starting Declaration: Statement A 5

Sage Payroll Level 2 – Osborne Training Complete the following Tasks. TASK 1 Set up the company information (adding your Surname after the company name), ensuring that the software is set up for the Income Tax and NI parameters for tax year 2016/17. Update the e-submission details. Required: Print reports detailing:  Income Tax bandwidths/rates  NI Rates for Tax Year 2016/17 (page 1 only)  Company Details TASK 2 Create employee records for all the employees including their personal details and their pay and deductions elements, onto the computerised system. For RTI purposes you need to include the employees Employment Status and Contractual Hours when creating their records.  Employee Details (personal)  Employee Contracted hours for RTI  Company Pension Scheme (page 1 only) TASK 3 It is time to process the payroll for payment on 28 July 2016 (month 4). David Couchner confirmed in writing that he has decided to join the pension scheme and will also contribute £5.00 per month to payroll giving commencing with his July salary. No employees will receive commission for this month as sales target is not met. Anna Ross worked 5 hours of Overtime. Required:  Process the payroll for payment on the 28 July 2016 (month 4) and process appropriate e-submission.  Print out payslips for all employees.  Print out a cheque analysis report for all employees. The last cheque number issued was 1001.  Print a Payroll Summary(ies) using a landscape format, for month 4 to include Employer’s NIC and pension. 6

Sage Payroll Level 2 – Osborne Training TASK 4 It is time to prepare for the monthly pay run for payment on 28 August 2016 (month 5). All employees will receive commission for this month as sales target is met. You have received the following information:  UK Digital Marketing Agency has reviewed its pay structure and decided to give a pay increase of 5% to all employees on basic pay and overtime only. Commission rates remain unchanged.  You have received a P6 from HMRC informing you of a change of tax code for David Couchner. His new tax code of 1100L will take effect immediately.  The manager, Neil Brown received a company loan to purchase a car. He borrowed £3,000.00 and will repay the loan at £150.00 per month. His first repayment will be deducted from this month’s salary. This is not subject to P11D.  You have received a Deduction of Earnings Order for Neil Brown (reference no C943/07). You are to deduct £240.00 per month from his pay and Neil has protected earnings of £1200.00.  During August Anna worked 15 hours overtime. Required:  Process the monthly payroll for payment on 28 August 2016 (month 5) and process appropriate e-submission.  Print a Payroll Summary (ies) using a landscape format, for month 5 to include Employer’s NIC and pension.  Print out payslips for Neil Brown and David Couchner. Make sure Neil Brown’s loan is shown on the payslip. 7

Sage Payroll Level 2 – Osborne Training TASK 5 It is time to prepare for the monthly pay run for payment on 28 September 2016 (month 6). You have received the following information:  Pradeep Kaur was off sick from Monday 7 September 2016 returning to work on Monday 14 September 2016. Pradeep has not been off sick within the last 8 weeks. It has been calculated that Pradeep’s relevant average 8 weekly earnings are £3384.64 and that she is eligible to receive £35.38 in SSP.  The manager, Neil Brown has worked a number of weekends setting up the new company. He is to receive a £300.00 bonus this month. This is to be treated as a Net Payment for only Tax.  Anna Ross’s circumstances: Anna Ross got married on 22nd September. She started working fulltime since 01 September 2016; her salary is £21,000 per year.  You have received an urgent email informing you that David Couchner has been dismissed on the grounds of gross misconduct. You will need to process him as a leaver and repay his savings. Do not deduct savings this month.  All employees will receive commission as sales target is met. There is no overtime this month. Required:  Update Anna Ross’s employee record.  Process the monthly payroll for payment on 28 September 2016 (month 6) and process appropriate e-submission.  Print a Payroll Summary (ies) using a landscape format, for month 6 to include Employer’s NIC and pension.  Print out payslips for Neil Brown, Pradeep Kaur and David Couchner.  Print a P45 for David Couchner show his leaving date at 30 September 2016.  Print an Employee Details Loans report for Neil Brown, showing the amount paid to date. End of Workbook 8