Payroll Level 3 Workbook_2_Open care

Sage Payroll Level 3 Workbook This Workbook complies with following Qualifications: IAB Level 3 Award in Computerised Payroll (Accreditation No: 601/0481/8) Sage Computerised Payroll Level 3 (Sage UK) Tax Year 2016/2017 General Instructions All tasks should be answered using a payroll software package setup for the 2016/2017 Tax Year. PAYE deductions should be calculated using the income tax legislation as at 6 April 2016. Useful Notes:  Using Director table method  What is Attachment of Earnings Order and Deduction of Earnings Order  What the letters mean in Tax Codes

Scenario You are the Payroll Administrator for the Open Care Ltd, a local company and it is your task to administer the payroll for the company. The company is moving to a different software provider and you have been given the employee data for the year to date, as at 31 July 2016, which is Month 4 and Week 17 of Tax Year 2016/2017. The office employs 1 full time Director, a full time Carer and 1 part time Carer and a full time Administrator. All employees are paid directly into the Bank, by BACS. The company is eligible for Small Employer’s relief (SER). Additional Information:  The company administers direct contributions to an HMRC approved ‘Payroll Giving’ Scheme. Any employees who are members of the scheme contribute at the rate of 2% of basic salary.  There is a savings scheme available for all employees to contribute to: Monthly paid employees can contribute £30.00 per month and weekly paid staff £5.00 per week.  A commission scheme is in place. The Director is to receive a monthly commission of 2% of her monthly salary, payable if the target, based on the previous month’s sales figures is met. All the other employees receive 1% commission of their monthly salary.  There is a £30.00 key holder allowance available (this payment is NOT included for commission purposes).  Complete the e-Submissions Settings as detailed below. User ID: PLANTS Password: Testing456 Contact Details: Mrs Christine Oak Telephone: 01865 222 2323 Email: [email protected]  The Company Operates a Holiday Scheme, all employees are eligible for the holiday scheme. Scheme details given below Starting Date for Holiday year and Absence Year 01/08/2016 Entitlement: 28 Days excluding National Holidays Accrual: Daily Basis; Working Pattern: Monday – Friday; Pattern Start Date: 01/08/2016 2

Company Information: COMPANY DETAILS Name: Open Care Ltd Address: 21 High Street Essex IG32 8DE Telephone: 01492 592378 Fax: 01492 592555 Email: [email protected] Tax Office: Cumbernauld Tax Reference: 999/P12678 Accounts Office Ref: 999 PP 12312312 BANKING DETAILS Company Bank: HSBC Sort Code: 01-18-45 Green Ways Cheshire Account No: 01766385 CH15 4RD Account Name: Open Care Ltd BACS Ref: OC COMPANY PENSION SCHEME Scheme Details Provider Details Scheme Ref: AS2010 Name: Scottish Investments Description: OCLP Address: 47 Station Road Deganwy Type: COSR (Contracted Out Cheshire Salary Related) CH31 9PK ECON: 3333333L SCON: 1234567N Contact Name: Dianne Abbott Employee 5% Email Address: - Contribution: Employer 5% Telephone: - Contribution: Administrator: Dahir Gure Payment Method: Cheque Telephone: 07847 584767 Note: Pension contributions are calculated on basic pay only. Bonus and commission payments are not pensionable. Use NI Category A where available. 3

Employee Information Employee Details Works Number: 001 Date of Birth: 14 December 1955 Employee Name: Katherine Conlon Start Date: 1 May 2002 Address 2 New Street Gender: Female Cheshire Marital Status: Single CH7 1NZ Tax Code: K56 NI Number: NP 156654A B Year to Date Figures £ Total Gross Pay 16666.68 Employee’s Net NIC 1250.68 EE Rebate 7.65 Gross Pay for NIC 16666.68 Gross Pay for Tax 15666.68 Employer’s Net NIC 1545.64 ER Rebate 18.57 Tax Paid 4218.06 Bank Details Account Name: Miss Katherine Conlon Sort Code: 01-18-45 Account Number: 01369815 BACS Reference OC001 Additional Information Job title: Director (table method) Katherine Conlon has an ongoing Deduction of Earnings Salary: £4166.67 per month Order. Her payments are £250.00 per month with Protected Earnings of £2268 per month. Open Care Ltd also makes an Contributes to Pension Scheme Administration Charge of £1.00 for this. Contracted Hours: 35 Commission 2% of monthly salary if targets are NI Category : A (D is not available from 2016/17 Tax year) met. Employee Details Works Number: 002 Date of Birth: 23 March 1954 Employee Name: Dahir Gure Start Date: 3 April 2007 Address Bengal House Gender: Male Texham Street Marital Status: Widower Cheshire Tax Code: 1100L CH7 1ES NI Number: NA 234723 D Year to Date Figures £ Total Gross Pay 11666.68 Employee’s Net NIC 1080.96 Gross Pay for NIC 11666.68 Gross Pay for Tax 11666.68 Employer’s Net NIC 1244.04 Tax Paid 1666.00 Bank Details Account Name: Mr D Gure Sort Code: 01-18-45 Account Number: 01389913 BACS Reference OC002 Additional Information Job title: Administrator Salary: £2916.67 per month Contracted Hours: 35 per week Contributes to Saving Scheme Commission 1% of monthly salary if targets are met. 4

Employee Information (continued) Employee Details Works Number: 003 Date of Birth: 15 June 1979 Employee Name: Andrew Ward Start Date: 1 April 2008 Address 1 Dhaka Road Gender: Male Cheshire Marital Status: Single CH32 8NG Tax Code: 1100L NI Number: BA 125176 A Year to Date Figures £ Total Gross Pay 9333.33 Employee’s Net NIC 802.56 Gross Pay for NIC 9333.33 Gross Pay for Tax 9333.33 Employer’s Net NIC 922.00 Tax Paid 1199.20 Bank Details Account Name: Mr A Ward Sort Code: 01-18-45 Account Number: 01249956 BACS Reference OC003 Additional Information Job title: Carer Salary: £2283.33 per month Contracted Hours: 35 per week Key Holder Commission 1% of monthly salary if targets are met. Employee Details Works Number: 004 Date of Birth: 23 February 1969 Employee Name: Nafiseh Zaman Start Date: 24 May 2007 Address 15 Osborne Road Gender: Female Cheshire Marital Status: Single CH34 6TF Tax Code: BR NI Number: NA 142367 C Year to Date Figures £ Total Gross Pay 5166.68 Employee’s Net NIC 301.44 Gross Pay for NIC 5166.68 Gross Pay for Tax 5011.68 Employer’s Net NIC 347.04 Tax Paid 1033.20 Bank Details Account Name: Ms N Zaman Sort Code: 01-18-45 Account Number: 01286538 BACS Reference OC004 Additional Information Job title: Carer (part-time) Salary: £1291.67 per month Contracted Hours: 20 per week Contributes to Payroll Giving Commission 1% of monthly salary if targets are met. 5

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 2016/2017. Complete the e-submission details given under additional information. Enter all of the employees, their personal details and their pay and deductions elements, onto the computerised system. Required: Print reports detailing:  Income Tax bandwidths.  NI Rates for Tax Year 2016/2017.  Company Details.  Company Pension Scheme (page 1 only).  Pension Provider (page 1 only).  Holiday Schemes Report Task 2 Enter the director and all employees, their personal details, pay and deductions elements onto the computerised system. Required: Print reports detailing:  Employee Details (Personal).  Employee Details (Cumulative).  Employee National Insurance Contributions to Date. Task 3 It is 31 August 2016 and time to process the payroll for Month 5 for the director and monthly paid employees. The following information should be taken into consideration:  The sales target for July was not met.  You have received a Student Loan notification for Andrew Ward to be applied from 1 August 2016. (Plan Type 1)  A change of tax code was received for Andrew Ward – the new code of 820L should be applied with immediate effect.  Nafiseh Zaman has decided to join the company pension scheme from 1 August 2016. All necessary signed authorisations for the deduction to be made from the employee’s pay have been received. Required:  Process the Payroll as at 31 August 2016 and process appropriate e-submission.  Print out Payroll Summary(ies) (landscape) to show both the Employee’s and the Employer’s NIC for Month 5.  Print Payslips for all employees. 6

Task 4 It is now time to calculate the Gross Pay due to the monthly employees for payment on 30 September 2016. You have received a Memo from the Director informing you of the decision at the last Board Meeting to implement a pay cut of 5% for all monthly paid employees including the Director. All standard payments are to be reduced by this amount. Nafiseh Zaman has had this pay cut deferred until the New Year. There is no change to the Key Holder’s payment.  Dahir Gure is leaving on 30 September 2016, this will be his last pay day. He has taken holiday from 03/09/2016 to 07/09/2016 and will have to be repaid the money paid into the Savings scheme since April 2016. Do not deduct savings from Dahir Gure’s pay this month (Month 6). Pay him any accrued holiday on the leaving date as a separate pay element.  Nafiseh Zaman had her baby on 22nd September and has started her Maternity Leave from 15th September. She will receive 0.5 of her salary for September plus any Statutory Maternity Pay (her commission is to be calculated on a full month’s salary of £1,291.67 and her payroll giving is to be calculated on £645.85).  The sales target for August was met, and the commission will be paid this month based on the monthly salaries before the pay cut, but all future commission payments will be frozen. Required:  Calculate the Gross Pay for the monthly paid employees for 30 September 2016.  Process the payroll for Month 6 as at 30 September 2016 and process appropriate e- submission.  Print out a payslip for Nafiseh Zaman and Dahir Gure only.  Print out Payroll Summary(ies) (landscape) to show both the Employee’s and the Employer’s NIC for Month 6.  Print out a P45/Leaver Statement for Dahir Gure. End of Workbook 7