Payroll Level 1 Workbook - J&S

Sage Payroll Level 1 Workbook This workbook is prepared to comply with following qualifications 1410: IAB Level 1 Award in Computerised Payroll QCF: 60107339 Sage Payroll Level 1 Certification exam (SAGE UK) Tax Year 2014-15 General Instructions 1. The Tasks are to be answered using legislation relating to the Tax Year 2014/2015, and th income tax parameters as at 6 April 2014 th 2. PAYE deductions should be calculated using the income tax legislation as at April 6 2014. 3. National Insurance Contributions should be calculated using either NIC Table A (CA38), NIC Table C (CA41) or NIC Table M (CA38) as appropriate. Scenario All Tasks will be based on the company J&S Fancy Dress which is a small shop managed by Jonathon and Sheila Bryant. J&S Fancy Dress is based in Altrincham, Cheshire. The HMRC Office is Manchester and the Reference No is 513/J076. Jonathon and Sheila are paid monthly, whilst the two shop staff, who are paid weekly in arrears, are paid in cash. You will be processing the pay for April 2014. All Tasks must be completed. 1

Company Information: COMPANY DETAILS Company Name J&S Fancy Dress Address 271 Queens Road Telephone: 0161 661661 Altrincham Cheshire Fax 0161 661662 WA16 0UR Email Sales@J&S.co.uk Tax Office Manchester Tax Reference 513/J076 BANKING DETAILS Company Bank Barclays Bank plc Account Name J&S Fancy Dress 20 High Street Altrincham Account No: 91136237 Cheshire WA16 6QP Sort Code 41-23-32 BACS Ref: J&S Additional Information:  Jonathon and Sheila also have accounts with the same branch of Barclays Bank and are paid directly into their accounts by BACS each month.  Weekly staff will be paid weekly in cash, do not include any £50.00 notes or £2.00 coins.  J&S has agreed to set up a savings scheme available for all employees to contribute to. The monthly paid staff will pay £50.00 per month whilst the weekly paid staff will pay £15.00 per week. This is to be treated as a post tax/nic deduction. 2

Employee Information Wo umb : 001 a o i h: 30 o mb 1980 mplo am : Jona hon an a a : 1 Ap il 2010 Add : 16 Lan do n nd : Mal Al in ham Ch hi Ma i al a u : Ma i d WA16 9 Ta Cod : 1000L umb : JR 233442A Ca go : A A oun am : M J an : ou do no n d o A oun umb : 96468901 n h an ’ Add o Cod : 41 23 32 J 001 AC R n : Job Ti l : Manag ala : £24,000.00 a in o h a ing h m 13 h mb 1982 Wo umb : 002 a o i h: mplo am : h ila an a a : 1 mb 2012 Add : 16 Lan do n nd : mal Al in ham Ma i al a u : Ma i d Ch hi Ta Cod : 350L WA16 9 A 156185A umb : Ca go : A M an A oun am : : ou do no n d o A oun umb : 97514902 n h an ’ Add o Cod : 41 23 32 AC R n : J 002 Job Ti l : A i an Manag ala : £18000.00 3

Wo umb : 003 a o i h: 14 Janua 1994 h mplo am : And o a a a : 12 Ap il 2010 h Add : 39 anl nd : Mal al Ma i al a u : ingl Ch hi M33 6 R Ta Cod : 1000L umb : A 621674 Ca go : A Job Ti l : al a ou l Ra : £6.18 a in o h a ing h m O im Ra : £7.73 Wo umb : 004 a o i h: 22 nd Jul 1950 mplo am : Tina anning a a : 12 Ap il 2010 h Add : Th Co ag nd : mal ump nd Road Ma i alStatus: Married Tax Cod : R Ch hi X 321956 WA14 8 umb : Ca go : C Job Ti l : al a ou l Ra : £7.50 a in o h a ing h m O im Ra : £9.38 Tina ha hand d in h l an do um n a ion o p o h da o bi h You are required to complete all of the following Tasks. TASK 1 – Set up Company Set up the company information ensuring that the software is set up for the Income Tax and NI parameters for tax year 2014/2015 Required: Print reports detailing:  Income Tax bandwidths.  NI Rates for Tax Year 2014/2015  Company details. 4

TASK 2 – Generate Employee Records Create employee records for all the employees including their personal details, pay and deductions elements, onto the computerised system. Required: Print reports detailing:  Employee Details (Personal).  Employee Details (Deductions). TASK 3 - Processing Pay It is now Monday 7th April 2014 and you need to process the payroll for the weekly paid employees, using the processing date of Friday 11 th April 2014 (Week 1). You should take the following information into consideration: Required: th  Using the information from the completed Gross Pay table, process the Payroll as at 11 April 2014 (Week 1).  Print a Payroll Summary(ies) using a ‘landscape’ format, for Week 1 to include Employer’s NIC.  Print a Cash Analysis for Week 1, this must show the total net pay due to each employee. (See Additional Information for criteria for Cash Analysis). Employee Basic Hours Basic Hourly Basic Pay Overtime Overtime Total Gross Pay Savings Rate Rate hours overtime Scheme pay £ £ £ £ £ £ 15 Andre Petrova 35 6.31 220.85 7.89 5 39.45 260.30 £ Tina Branning 20 7.50 150.00 9.38 0 0.00 150.00 15 5

TASK 4 – New Employee J&S Fancy Dress has taken on a new employee as Sheila is leaving to have a baby, his name is David Parsons and he will be helping in the shop and making any deliveries that are required. David’s hours are variable depending on the hours he is needed to work in the shop and the times he has to make deliveries so he has to complete a timesheet at the end of each week to show what hours he has worked. David does not receive any overtime pay, but gets a higher hourly rate to compensate for this. The following points apply: th  His start date is 7 April 2014.  David did not have a P45, so he has signed a P46 and ticked Statement B, so his Tax Code will be 1000L/Week 1.  He will be paid weekly in cash (remember this he will be paid a week in arrears). Wo umb : 005 a o i h: 12 h o mb 1982 h mplo am : a id a on a a : 7 Ap il 2014 Add : 14 Th Wa n nd : Mal al Ma i al a u : Ma i d Ch hi M33 6RW Ta Cod : 1000L W 1 umb : hop li i Job Ti l : ou l Ra : £8.50 a in o h a ing h m Required:  Enter David’s details onto your computerised payroll system.  Print a report showing David’s personal details. 6

TASK 5 – Processing Pay th The date is Monday 14 April 2014 and it is now time to process the payroll for the weekly paid employees, th using the processing date of Friday 18 April 2014 (Week 2). Required:  Complete David’s Time Sheet given Below. th  Using this completed Gross Pay information process the Payroll as at 18 April 2014 (Week 2).  Print a Payroll Summary(ies) using a ‘landscape’ format, for Week 2 to include Employer’s NIC.  Print a Cash Analysis for Week 2, this must show the total net pay due to each employee. (See Additional Information for criteria for Cash Analysis).  Print payslips for all the weekly paid employees for week 2 Employee Basic Hours Basic Basic Pay Overtime Overtime Total Gross Pay Savings Hourly Rate Rate hours overtime Scheme £ pay £ £ £ £ £ Andre Petrova 35 6.31 220.85 7.89 3 15.00 Tina Branning 20 7.50 150.00 9.38 2 15.00 David Parsons 8.50 N/A 0 N/A 15.00 J&S FANCY DRESS TIME SHEET NAME: DAVID PARSONS Week Ending: 12 th April 2014 AM IN AM OUT PM IN PM OUT DAILY TOTAL HOURS MONDAY 1000 1300 1400 1800 TUESDAY 0845 1345 OFF OFF WEDNESDAY DAY OFF DAY OFF DAY OFF DAY OFF THURSDAY 0800 1300 1600 1800 FRIDAY 1000 1500 1700 2000 SATURDAY 0930 1330 1430 1730 SUNDAY DAY OFF DAY OFF DAY OFF DAY OFF TOTAL HOURS 7

TASK 6 – Processing Pay th It is Monday 28 April and you need to calculate and process the Gross Pay due to the monthly paid staff th for payment on 30 April 2014 (Month 1).  Jonathon is to receive a standard month’s salary.  You have received notification of a change of Tax Code for Jonathon, which is to be applied immediately. His new code has been changed to 625L.  Sheila is leaving to have her baby, she is NOT entitled to any Maternity Pay as she has not worked at J&S Fancy Dress for long. You are to pay her 1 month’s salary plus her holiday pay accrued to date of ¼ of a month’s salary (you are to show this as a separate payment). Required: th  Using the information given above, process the Payroll as at 30 April 2014 (Month 1).  Print a Payroll Summary(ies) using a ‘landscape’ format, for Month 1 to include Employer’s NIC.  Print a BACS report which includes the total to be paid.  Print a Payslip for Sheila  Update and print out Page 1 of Sheila’s P45 TASK 7 Answer the following questions: a) Explain, step by step, how to “Back Up” your work. b) Explain, step by step, how to “Restore” your work? c) Explain the importance of the processing date in relation to preparing and submitting the payroll data. d) Identify the minimum employee data required in order to process the payroll. e) Outline the procedure for submitting the payroll data at each pay period END OF TASKS End of Workbook 8