Payroll Level 3 Workbook Solutions - Open Care Ltd

Sage Payroll Level 3: Sage Payroll Workbook 2 Solutions: Open Care OSBORNE TRAINING

Copyright ©Osborne Training Contents Notes for the Case Study ........................................................................................................................ 2 Task 1: Entering the Company Information. ........................................................................................... 2 Task 2: Entering Employee Details .......................................................................................................... 8 Task 3: Running Payroll ................................................................................................................. 15 Task 4: Maternity Pay, Pay Cuts and Leavers ................................................................................ 17 1

Copyright ©Osborne Training Notes for the Case Study 1. We will be using the tax year 16-17. 2. There are 4 employees which are all paid by BACS. 3. The company is eligible for SER. 4. There is an HMRC approved payroll giving scheme which is at 2% of the basic salary. 5. There is a savings scheme. For monthly employees, the rate is £30 and for weekly employees the rate is £5. 6. There is a commission payment of 2% for the director and 1% for other employees if sales targets are met. 7. There is also a keyholder allowance of £30. 8. There is also a holiday scheme. All employees are eligible for this scheme. 9. There is also a company pension scheme that will need to be entered into the system. Task 1: Entering the Company Information. 1. Enter the company details: 2. Change the processing date to 31/08/2016 3. The business is eligible for SER, so click on the company module, and in settings tick the box stating that they are eligible for SER. 4. Enter the tax office name as well. 2

Copyright ©Osborne Training 5. Now, enter in the banking details. 6. Because the company has a holiday scheme, we need to amend elements in the absence tab. 3

Copyright ©Osborne Training a. Enter the start date of 01/08/2016 in the tab. b. Enter the same date in the holiday year box. 7. Now, we have to set up the pension. a. Go to the pension tab in the task window and amend the first pension option. b. Enter the pension type as COSR and enter the SCON number. c. Click on the employee tab (you will be prompted to enter the ECON number). Enter the amount as 5%. d. Click on the employer tab and put the contribution in as 5%. e. Enter the provider details under the provider tab. (In the provider box, you must select “other”.) 4

Copyright ©Osborne Training f. The pension scheme is based on base salary only, so any pay element besides base salary must have the pension boxes unticked. g. There is no longer a category D for NICs, so we must use category A. 8. It is now time to set up the holiday scheme. a. Click on the holidays button in tasks. b. Click on holiday scheme 1 and edit. c. Enter the entitlement of 28 days, leave the accruals as daily and do not include national holidays. d. Click on the settings tab and enter the working day pattern as “NQQQQQN”. e. Enter the start date as the 01/08/2016. (You will notice that the date changes, but this is due to the fact that 01/08/2017 is a midweek date.) 5

Copyright ©Osborne Training 9. We can now begin entering pay elements. a. Enter the payroll giving scheme in the pay elements section. i. Enter a new deduction. Name it “payroll giving scheme”. ii. Put the hours at 0.02 and leave the rate blank. This is where the employee’s salary will be entered. iii. Ensure the PAYE box has been ticked. a. Enter the savings scheme. (Enter 1 rate for now. You can amend this later.) 6

Copyright ©Osborne Training b. Enter the commission scheme in payments. (Enter 1 rate for now. You can amend this later.) c. Ensure the pension boxes are not ticked. d. Enter the keyholder allowance 10. Enter in the e-Submission details. 11. You can now generate all the reports needed. (Holiday scheme info is under the company tab) 7

Copyright ©Osborne Training This task is now completed. Task 2: Entering Employee Details 1. Enter the details for Katherine Conlon a. Enter all the information as follows: b. Save the information. Click on her file and enter her employment as full time and ensure that you have select “Director (Table Method)” under director status. c. You can now enter the deduction of earnings order. Click on pay elements under the employment tab. Click on attachment of earnings order to enter the information. 8

Copyright ©Osborne Training d. As there is an administration charge, we need to go to pay elements and enter the administration fee. e. Enter her hours into the salary tab. 9

Copyright ©Osborne Training f. Enter in her YTD values. g. As she is a director, you will need to enter the Director’s NIC information. h. Enter the NIC details under the NIC tab as normal. i. Allocate the holiday scheme to her record. Click on the absence tab and select holiday. Assign holiday scheme 1. This employee is now completed. 10

Copyright ©Osborne Training 2. Enter the details for Dahir Gure a. Enter his employment as full-time. b. Enter his hours under salary in the employment tab. c. He is eligible for the holiday scheme, so enter scheme 1. This is under the absence tab. d. Enter in his YTD values. 11

Copyright ©Osborne Training This employee is now completed. 3. Enter the personal information for Andrew Ward 12

Copyright ©Osborne Training a. Enter him as a full-time employee and enter his hours. b. Enter his holiday entitlement. 13

Copyright ©Osborne Training c. Enter the YTD values. This employee is now completed. 4. Enter the personal details for Nafiseh Zaman 14

Copyright ©Osborne Training a. Enter in her hours and employment status (part-time) b. Enter her YTD values c. Enter her holiday allowance. 5. Print off the reports This task is now complete. Task 3: Running Payroll 1. Change the tax code and student loan option for Andrew Ward. 15

Copyright ©Osborne Training 2. Enter Nafiseh into the pension scheme from the first of August. 3. The sales targets were not met, therefore, there will be no commission paid. 4. Highlight all employees and enter the payments (ensure that no commission is given). 5. Print off all of the reports in pre-update reports. 6. Update the information and submit the e-submission to HMRC. 16

Copyright ©Osborne Training Task 4: Maternity Pay, Pay Cuts and Leavers 1. Change the processing date to 30/09/2017 2. Let’s start with Dahir: a. Click on his account and go to absence. b. Click on diary entry to enter his holiday period. i. Ensure you only enter working days. Ensure this says holiday! Not SSP! c. Highlight Dahir and click on enter payments d. Enter the pay cut (.95) in salary. e. The commission is based on the old salary. 17

Copyright ©Osborne Training f. He needs to be reimbursed for the 5 months he paid into the savings scheme (£150). g. He now needs to be repaid for the holiday he has accrued. i. Click on his record. ii. Go to absence. Click on the holiday button. iii. Click on entitlement to see how many days he has accrued. 18

Copyright ©Osborne Training h. Go to the payments section and enter the payment. i. The hours will be 1.5. ii. The rate will be his daily income. You will need to calculate this. 1. (2916.67*12)/365= 95.89 iii. Untick all the pension and holiday accruals buttons. 19

Copyright ©Osborne Training 2. We can now deal with Nafiseh. a. She is only getting 50% of her salary. b. She will be getting a commission. c. Her deduction will be based on £645.85 d. You can now enter her maternity pay. 20

Copyright ©Osborne Training i. Click on absence and then on S.M.P. ii. Enter in the information about her child. iii. It will not let you enter in a payment as we do not have the full payment data, so you will have to calculate her average weekly earnings. (1291.67x12)/52 21

Copyright ©Osborne Training 3. Process the payments for the other two ensuring that the pay cut and commission is correct. 4. Print off the pre-update reports needed. 5. Update your records. Submit the e-submission as well as an employer payment summary as you made statutory payments. 6. Make Dahir a leaver and print off the P45. End. 22