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mock exam question 2016/17

  • Student
  • 7 posts
  • # 115694

To work on the basis of 52 week year and 5 day week,round final answer to the nearest 1£.

 

A person with a monthly salary of 2000 is off sick for the first two weeks of May 2016, returning to work on Monday 16 May.

Employer pays him only SSP for the time he is off sick. Monthly salary is not paid for each day the employee is absent.

 

Qestion: what is the balance of his salary due in May correct to the nearest 1£?

 

My calculation: 2000 - 2x24000/52 + 7/5x88.45 = 1200.75

Rounded to the nearest pound: 1201

The answer is incorrect. What am I doing wrong? Can anyone enlighten me, PLEASE?



Edited at 25 Sep 2017 04:40 PM GMT

Edited at 25 Sep 2017 04:40 PM GMT

  • Member PM.Dip
  • Practice Licence
  • 779 posts
  • # 115695

Is the correct answer £1108?

How do you get the figure of £88.45?

  • Student
  • 7 posts
  • # 115696

I do not know the correct answer.

88.45 is the basic week SSP  for 2016/17

  • Member PM.Dip
  • Practice Licence
  • 779 posts
  • # 115697

Hi,

If you do not know the answer how do you know your figure of 1201 is incorrect?

As per your initial question:

Question: what is the balance of his salary due in May correct to the nearest 1£?

As per my calculations:

Answer: Annual salary is £24000 which when divided by 52 equals a weekly figure of £461.54 and then divided by 5 equals a daily figure of £92.31. (or you could just divide the annual salary by 260 working days)  

(Some people divide the annual salary by 261 working days due to the year having 365 days less 52 weekends (104) which would result in £91.95 salary per day) .As long as you are consistent with the calculation every time the situation arises in your payroll then both methods are acceptable.

So the balance of his salary would be as follows:

16th - 20th May = 5 days worked, 23rd - 27th May = 5 days worked and 30th -31st  = 2 days worked gives a total of 12 worked days in May at £92.31 per day equals £1107.72 - rounded up to £1108.

This figure does NOT include the SSP payable which would be £123.83 for 7 days at the figure you stated of £88.45 per week.  

Hope this now answers your query.



Edited at 24 Sep 2017 08:22 PM GMT

  • Student
  • 7 posts
  • # 115705

Thank you MM Bookkeeping for your answer. That is completely different way of calculating it than I was taught on my payroll course. 

I can not say whether your answer would be treated as correct by the ICB sytem. I know mine wasn't as it was marked red and I lost 2 points on it, and no correct answer was given...

Thank you once again.

  • Student
  • 7 posts
  • # 115706

Ok, now I got it. The balance of salary should not include SSP, is that correct?

I thought it was the total including SSP. 

  • Member PM.Dip
  • Practice Licence
  • 779 posts
  • # 115707

Gauranga said:

Ok, now I got it. The balance of salary should not include SSP, is that correct?

I thought it was the total including SSP. 


Yes - The balance of salary should not include SSP.

Would be interested to know the way you were taught to do the calculation on your payroll course as I have been doing payroll for years using that method.

Did the ICB exam too many years ago to remember the questions but would have used this method if the situation had arisen.

Marilyn

  • Student
  • 7 posts
  • # 115708

Would be interested to know the way you were taught to do the calculation on your payroll course as I have been doing payroll for years using that method.

Did the ICB exam too many years ago to remember the questions but would have used this method if the situation had arisen.

Marilyn


 I was taught the way I put it in my first post. For the sake of the course we worked on the basis of 52 week year, of course in real situation the way you presented would be more accurate.

  • Associate
  • Practice Licence
  • 1 post
  • # 115712

Dont forget they the question is asking forthe BALANCE of the salary that they would pay, this will not include the SSP

  • Member PM.Dip
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  • 779 posts
  • # 115713

Gill1009 said:

“Dont forget they the question is asking forthe BALANCE of the salary that they would pay, this will not include the SSP”

Eh? I have already explained that to Gauranga.

Did you not read the whole post and responses?

  • Student
  • 7 posts
  • # 115714

Gill1009 said:

“Dont forget they the question is asking forthe BALANCE of the salary that they would pay, this will not include the SSP”

Yes, I got it. But anyway thank you for confirmation :).

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