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Help to understand payroll mock calculation (B Liu)

  • Member PM.Dip
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  • # 113656

Hi

I've recently taken the Payroll Mock exam and trying to work through the answers to make sure I understand the one's I had wrong.

I've see this topic in several other posts but can't see any actual answer so hoping someone can explain how the following is calculated

 

Info Given:

An employee usually receives £4000 per month for Mon-Fri working days.

Pay is being calculated for May 15

Employee is off sick 6th May to 19th May inclusive (2 weeks Wed to Tuesday)

For the period off sick the employee only receives SSP

Assume that employer was notified, no prior sickness and employee meets eligability

 

Needed:

Work out the Sick pay due and the basic gross pay due

 

I worked out the sick pay entitlement ok but strugling to get the correct gross basic pay and would be grateful if anyone can help.

I've tried several ways but can't even get within £20 of the answer given :(

  • Member PM.Dip
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  • # 113657

Hi Andy_ish,

2 possible ways to do this:

Annual salary £48000 divided by 261 working days per annum = £183.91 per day

Working days left in May after sick deducting sick days = 11

£183.91 x 11 = £2023.01

Or

Annual salary £48000 divided by 52.2 weeks = £919.54 per week

Working weeks left in May after deducting sick weeks = 2 weeks plus 1day

£919.54 x 2 = £1839.08 plus 1 day of £183.91 = £2022.99

ony 2p difference between each method.

Hope this helps.

  • Member PM.Dip
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  • # 113658

MM Bookkeeping said:

Hi Andy_ish,

2 possible ways to do this:

Annual salary £48000 divided by 261 working days per annum = £183.91 per day

Working days left in May after sick deducting sick days = 11

£183.91 x 11 = £2023.01

Or

Annual salary £48000 divided by 52.2 weeks = £919.54 per week

Working weeks left in May after deducting sick weeks = 2 weeks plus 1day

£919.54 x 2 = £1839.08 plus 1 day of £183.91 = £2022.99

ony 2p difference between each method.

Hope this helps.


 Thanks for your help with this, I haddn't considered using the 52.2 weeks and was going off either the monthly figure or annual over 52 weeks.

 

This has now made me wonder why this figure would change depending on the month the sickness was taken.

If the same two week sickness happened in June (where there are 22 working days) instead the basic would increase by an extra £183.91 then increase again if the same sickness happened in July (where there were 23 working days) insteadd of May.

Looking at it from the employee side they usually receive £4000 per month. After 10 days sickness they receive £2023 so it looks like a loss of £197.70 per day of sickness which is higher than the daily rate calculated.

  • Member PM.Dip
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Update for anyone else having trouble with this question as I think I now have the answer.

Thanks again to MM Bookkeeping although the answer gave wasn't what the mock gave this still helped me a lot.

 

The mock paper gives £2153.85 as the basic gross pay

annual salary £48,000 / 52 = weekly salary £923.08

weekly salary £923.076 / 5 = daily salary

sick days 10 x daily salary £184.615 = deducted amount for sickness

normal monthly salary £4000 - deducted for sick £1846.15 = £2153.85

 

 

  • Member PM.Dip
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  • # 113660

Hi,

Glad you got there in the end!

Seems like the 'employee' got an extra £130 odd more than I would have paid them!

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