Payroll Level 2 Workbook - Marcell

Sage Payroll Level 2 Workbook This Workbook complies with the following Qualifications: Sage Computerised Payroll Level 2 Certification (Sage UK) IAB Level 2 Award in Computerised Payroll QCF 60104752 General Instructions 1. All tasks should be answered using a payroll software package setup for the 2015/2016 Tax Year 2. National Insurance Contributions should be calculated using either NIC Table A (CA38) or NIC Table C (CA41) as appropriate 3. PAYE deductions should be calculated using the income tax legislation as at April 6 2015 th

Scenario You are a Payroll Clerk working for Osborne Payroll Bureau. You are responsible for processing the payroll for a new business. Marcell Recruitment Agency is a new company offering recruitment services supplying temporary and permanent workers to the construction industry. The company started trading on 1 July 2015. Four employees have been recruited to start working for the Recruitment Agency, 1 manager, 2 recruitment officers and 1 administrator. th Employees are paid by cheque on 28 of each month. Additional Information:  Employees have the opportunity to contribute to a HMRC approved charity scheme.  Employees have the opportunity to join a savings scheme with contributions payable at the rate of £60.00 per month.  The Company offers a stakeholder pension to employees. Employees who opt to join the pension scheme contribute £50.00 per month and the employer contributes £50.00 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 to the recruitment officers on placing workers within the construction industry. The commission for placing a worker in permanent employment is calculated at 3% of the newly recruited employee’s monthly salary.The commission for placing a temporary contract worker is calculated at 1.5% of the newly recruited employee’s monthly salary. 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.  Marcell Recruitment Agency makes SSP/SMP/SAP/SPP up to basic for all employees. Marcell Recruitment Agency is Eligible for Small Employers’ Relief (SER).  Marcell Recruitment 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

Company Information: Name Marcell Recruitment Agency Address Unit 1 Havendside Industrial Estate Fishtoft Road Boston Lincolnshire PE21 0AA Telephone: 01932 672429 Fax 01932 672430 Email [email protected] Tax Office Shipley Tax Reference 999/M3432 Accounts Office Ref No. – 999/PP12312312 Bank Details: Company Bank NatWest plc Address 1 Rowallane Crescent Sort Code: 60-45-25 Boston Account No: 04784578 Lincolnshire PE21 7BA Account Name: Marcell Recruitment Agency E-Submissions Settings User ID: PLANTS Password: Testing456 Contact Details: Mr Peter Lewis Telephone: 01865 222 2323 Email: [email protected] 3

Employee Records: Employee Details Works Number: MR01 Date of Birth: 30 September 1965 Employee Name: Peter Lewis Start Date: 01 July 2015 Address: 1 College Road Gender: Male Cranwell Village Marital Status: Married Sleaford NI Number: AB 315584 A NG34 8DJ Additional Information Job Title: Manager Contributes to the pension scheme Employment Type: Full time Contributes to the savings scheme Annual Salary: £30,000.00 Payment Method: Monthly by Cheque Contracted Hours: 35 per week Previous Employer Details P45 – Starting Declaration: Statement B Previous Employer Ref: 352/F3234 Date left employment: 31 May 2015 Tax Code at leaving: 1060L Month 1 Employee Details Works Number: MR02 Date of Birth: 4 January 1996 (age 19) Employee Name: Lucia Connolly Start Date: 1 July 2015 Address: 7B Khormaksar Drive Gender: Female Nocton Marital Status: Single Lincoln NI Number: AB 723212 D LN4 2DD Additional Information Job Title: Recruitment Officer Contributes to the pension scheme Contributes £7.50 per month to a Payroll Employment Type: Full time Giving scheme Annual Salary: £18,000.00 Payment Method: Monthly by Cheque Contracted Hours - 35 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 2015 Tax Code at leaving: 1060L 4

Employee Records (Continued): Employee Details Works Number: MR03 Date of Birth: 14 September 1978 Employee Name: Christopher Walsh Start Date: 1 July 2015 Address: 9 Irby Street Gender: Male Boston Marital Status: Married Lincolnshire NI Number: CB 851265 B PE21 8JA Additional Information Job Title: Recruitment Officer Contributes to the Savings Scheme Employment Type: Full time Annual Salary: £18,000.00 Payment Method: Monthly by Cheque Contracted Hours 35 per week Previous Employer Details P46 – Starting Declaration: Statement C Employee Details Works Number: MR04 Date of Birth: 7 December 1965 Employee Name: Ewa Kourilova Start Date: 1 July 2015 Address: 7 Bittern Way Gender: Female Lincoln Marital Status: Divorced Lincolnshire NI Number: BA 264146 B LN6 0JG Additional Information Job Title: Administrator Employment Type: Part time Annual Salary: £12,480.00 Overtime Rate: £15.00 per hour Payment Method: Monthly by Cheque Contracted Hours: 20 per week Previous Employer Details P46 – Starting Declaration: Statement B 5

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 2015/2016. Update the e- submission details. Required: Print reports detailing:  Income Tax bandwidths/rates  NI Rates for Tax Year 2015/2016 (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 2015 (month 4). A Gross Pay summary sheet detailing the payments to the monthly employees can be found below. Christopher Walsh 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. Required:  Process the payroll for payment on the 28 July 2015 (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 10061549. 6

 Print a Payroll Summary(ies) using a landscape format, for month 4 to include Employer’s NIC and pension. Employee Name Monthly Salary Overtime Gross Pay Payroll Giving Pension Savings £ £ £ £ £ Peter Lewis 2500.00 2500.00 50.00 60.00 Lucia Connolly 1500.00 1500.00 7.50 50.00 Christopher 1500.00 1500.00 5.00 50.00 60.00 Walsh Ewa Kourilova 1040.00 5 hours x 1115.00 £15.00 =£75.00 TASK 4 It is time to prepare for the monthly pay run for payment on 28 August 2015 (month 5). You will need to calculate the commission payable to the 2 recruitment officers, Lucia Connolly and Christopher Walsh. A table detailing the number of workers placed in employment during July 2015 can be found below. You have received the following information:  Marcell Recruitment Agency has reviewed its pay structure and decided to give a pay increase of 1% 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 Christopher Walsh. His new tax code of 1060L will take effect immediately.  The manager, Peter Lewis received a company loan to purchase a car. He borrowed £5,000.00 and will repay the loan at £200.00 per month. His first repayment will be deducted from this month’s salary.  You have received an Deduction of Earnings Order for Peter Lewis (reference no C943/05). You are to deduct £120.00 per month from his pay. The overall DEO is for £2400.00 and Peter has protected earnings of £1000.00.  During August Ewa worked 15 hours overtime. Required:  Process the monthly payroll for payment on 28 August 2015 (month 5) and process appropriate e-submission.  Print a Payroll Summary(ies) using a landscape format, for month 5 to include 7

Employer’s NIC and pension.  Print out payslips for Peter Lewis and Christopher Walsh. Make sure Peter Lewis loan is shown on the payslip. Recruiter: Lucia Connolly – workers placed in July 2015 Name Contract Monthly Commission Salary £ £ Adam Dornier Permanent 2200.00 Simon Hart Permanent 1750.00 Bill Junesko Temporary 1574.00 James Garston Temporary 1824.00 Raymond Suchon Temporary 1728.00 Andre Petrova Permanent 2250.00 Total commission earned Recruiter: Christopher Walsh – workers placed in July 2015 Name Contract Monthly Commission Salary £ £ Charles Branning Permanent 1785.00 Timothy Kurthy Temporary 2110.00 Peter Marik Temporary 2410.00 Ian Devlin Permanent 1885.00 Peter Pollock Permanent 1900.00 David Killips Temporary 1650.00 Gavin Malone Permanent 2000.00 Total commission earned Note: Commission is calculated on 3% of a permanent worker’s monthly salary and 1.5% on a temporary contract worker’s monthly salary. 8

TASK 5 It is time to prepare for the monthly pay run for payment on 28 September 2015 (month 6). You have received the following information:  Lucia Connolly was off sick from Monday 7 September 2015 returning to work on Monday 14 September 2015. Lucia has not been off sick within the last 8 weeks. It has been calculated that Lucia’s relevant average weekly earnings are £378.22 and that she is eligible to receive £35.38 in SSP.  The manager, Peter Lewis 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 both Tax and NIC.  You have received an email informing you of the following changes to Ewa Kourilova’s circumstances: From 1 Septebmer Ewa is now on a full time contract (35 hours per week). Her new annual salary is £21.500.00. Her marital status is now changed as she got married during September, she has not changed her surname but has changed address: 5 Beechcroft Close Sough Hykeham Lincoln LN6 7AD  You have received confirmation of this month’s commission payments. You are to pay Lucia Connolly £324.81 and Christopher Walsh £298.57. There is no overtime this month.  You have received an urgent email informing you that Christopher Walsh 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. Required:  Update Ewa Kourilova’s employee record.  Process the monthly payroll for payment on 28 September 2015 (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 Peter Lewis, Lucia Connolly and Christopher Walsh.  Print out an Employee Details Personal and Employee Contracted Hours for Ewa Kourilova.  Print a P45 for Chistopher Walsh show his leaving date at 30 September 2015.  Print an Employee Details Loans report for Peter Lewis, showing the amount paid to date. End of Workbook 9