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Help - Payroll Managment 2016/2017

  • 3 posts
  • # 113808

Can anyone help me understand where I am going wrong with the following 3 questions: They are all incorrect, and I just can't see why??

 

 

 

1.  Working out repayments of Student loans.

 

 Ex student on £33k/year

Plan1:  33,000 /12 = £2750 – 1457 (16/17) threshold = 1293 x 9% = £116.37/month repayment

 

Plan 2:  33,00/12 = £2750 – 1750 (16/17) threshold = 1000 x 9% = £90.00/montrh repayment

 

 

 

 

And

 

2. director earning £3,000 per month using cumulative method.


 Employers NIC’s for 3 rd month

 

3 months salary 9000 – 8112 = 888 x 13.8% = £90.00

  And

 3. Medical insurance premium a month is £52.00.  Employers NIC's if employee earnings are high and is into the 40% bracket.

 

£52.00 x 12 = £624 x 13.8% = £86.11 per month.


Many thanks

Susie.

 

  • Member PM.Dip
  • Practice Licence
  • 27 posts
  • # 113810

Hi Susie - who is telling you your answers are wrong?

Q1 - part 1 may just be need to be rounded down to nearest whole £. Part 2 is correct according to SL tables for 2016/7.

Q2 - £888.00 x 13.8% = £122.54

Q3 - Your figure is correct but is question really asking for employER'S Class 1a NI?  The fact that the employEE is in 40% tax bracket is irrellevant when calculating emplyERS NI so why mention it?

Are you sure your test is using 2016/7 rates? My course is still on 2014/5!

....or I missing something too? Would be interested to hear from others as I am attempting my Payroll mock this wekend.

Peter

  • 3 posts
  • # 113811

Hi Peter,

Thank you for replying.   Yes it is on the 2016/2017 mock exam.

 

I  purposely do not put the whole question up, as I didn't want to spoil it for anyone taking the mock exam.

The question 3 is only part of the question, the other was questions I anwsered, which were correct but the employers contribution for the £52.00 Medical insurance was not correct.

 

I might give them a call to see why the questions I got wrong, but can't see why, are incorrect!!!  I am going to take the other Mock exam for 2016/2017, and will see how I get on with that.

 

Good luck with your exam.

 

Susie.

  • 3 posts
  • # 113812

 

 

Also

 

I just noticed I made a typing error for the

2. director earning £3,000 per month using cumulative method.


 Employers NIC’s for 3 rd month

 

3 months salary 9000 – 8112 = 888 x 13.8% = £122.54

I did put this, and they marked it as incorrect.


Susie.

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