The following figures have been extracted from a trader's records in respect of wages and salaries for the month of July:
(i) Wages and salaries (gross): $6,300
(ii) Income tax: $1,600
(iii) Employees' pension contributions: $600
(iv) Employers' pension contributions: $700
1. What is the total amount the trader will have to pay for wages and salaries for July?
A: $4,100
B: $4,800
C: $6,300
D: $7,000
2. What is the net pay received by employees?
A: $4,100
B: $4,200
C: $4,800
D: $5,600
1. Which of the following does not appear on a payslip?
A: Gross weekly wage for the employee
B: Tax paid to date by the employee in the tax year
C: Deductions paid by the employee
D: Details of the employee's expected pension
2. Which is the most convenient way for a large employer to pay salaries electronically?
A: BACS
B: Bank giro transfer
C: By cash
D: By cheque
A business manufactures packing cases and employs a number of people on a piece rate scheme of $3.00 for each packing case made. If an employee produces more than 100 packing cases in a week, any extra packing cases produced over 100 are paid at a rate of $4.00 per packing case. All employees have a guaranteed minimum weekly wage of $300. In the last week an employee produced 109 packing cases.
What was the employee's gross pay for the last week?
A: $300
B: $327
C: $336
D: $436
Employees B and C work for Smash Co which operates the following bonus schemes:
1. A bonus of $10 for every complete $5m by which sales exceed $100m in any one month
2. A bonus of $5 for every 10 boxes of components produced by any one worker in excess of 1,000 boxes in one week in which the department produces more than 10,000 boxes
3. A bonus of 10% of the worker's pay for any week where output exceeds 10,000 boxes.
In one week Employee B produced 980 boxes, and Employee C produced 1,020 boxes. The department as a whole produced 10,500 boxes. The figures for the previous month showed that sales were $102.7 million. Employees B and C have basic weekly pay of $120 and $130 respectively.
What bonus will they each receive?
Employee K is paid commission of 5% on the first $20,000 of sales, and 7.5% on any sales in excess of that amount. However, Employee K is only paid the commission when either the customer has paid for the order, or has taken out a financing agreement. In October Employee K made sales of $35,000. However, two customers declined to pay or take out a financing agreement. One had ordered goods costing $1,500, and the other goods costing $2,500.
How much commission will Employee K receive?
Here are the totals from TTC's January payroll:
Total gross pay: $6,172.20
Total employer's state benefit: $488.20
Total income tax: $1,029.96
Total employees' state benefit: $445.20
Total net pay: $4,697.04
Task: Post the above to the relevant general ledger accounts.
Post the following payroll details to the appropriate general ledger accounts using T-accounts, and balance the wages and salaries payable account.
Week 40
| Employee | Gross pay $ | Pension $ | Income tax $ | Employees' state benefit $ | Net pay $ | Employer's pension $ | Employer's state benefit $ |
|---|---|---|---|---|---|---|---|
| P Singh | 395.00 | 15.00 | 57.92 | 30.85 | 291.23 | 15.00 | 36.71 |
| M Chan | 406.25 | 22.00 | 64.77 | 41.33 | 278.15 | 15.00 | 43.82 |
| Total | 801.25 | 37.00 | 122.69 | 72.18 | 569.38 | 30.00 | 80.53 |