Forum

• # 85687
• Thu 04 Oct 2012 09:12 AM

Hello,

I have just started to study Payroll Management I am using Sage Instant Payroll Self-study materials and I need your help.

I am doing my first Creative Remedies Ltd mock exam and I got stuck on my very first pay.

e.g. Wendy Bachelor

       Pay                           Weekly

       Total gross                £650

       PAYE deduction         £101.20

       N.I deduction            £61.38   but my software shows £59.45
All N.I deductions to all employees are incorrect compare to the answers. 

The Tax Period: Week 1: Month 1: Year 2011/2012.

What did I do wrong? Did I miss something in the books? I can’t find any mistakes…

Thank you very much for your help. 

Regards

Indre

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• # 85689
• Thu 04 Oct 2012 10:41 AM

Hi Indre,
The only thing I can suggest is that the NI legislation figures are wrong in the program and will have to be corrected.
If you go to Company then Legislation and then NI Bands & Rates - you will have to look at the correct NI bands on HMRC website for this particular year - and then compare details.
Regards,
Marilyn    

• A clever person solves a problem.

  A wise person avoids it.

  Albert Enstein

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• # 85693
• Thu 04 Oct 2012 11:34 AM

MM Bookkeepingsaid:

“Hi Indre,
The only thing I can suggest is that the NI legislation figures are wrong in the program and will have to be corrected.
If you go to Company then Legislation and then NI Bands & Rates - you will have to look at the correct NI bands on HMRC website for this particular year - and then compare details.
Regards,
Marilyn    ”

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• # 85694
• Thu 04 Oct 2012 11:57 AM

Hi Indre,
Glad to be of help and everything is ok now.
Marilyn  

• A clever person solves a problem.

  A wise person avoids it.

  Albert Enstein

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• # 85697
• Thu 04 Oct 2012 03:11 PM

Hi again :-)

I have another quastion... the first's weeks amounts are correct but when I'm doing second week the PAYE amount deducted is incorect. Nothing has changed except that it is a second week. Do you know why is that happening? 

Thank you!

Regards

Indre 

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• # 85709
• Thu 04 Oct 2012 09:12 PM

Hi Indre,
Possibly the same problem as the NI - check the paye details.
Same as before: go to company then legislation then PAYE.
I have looked back my software for the year 2011-12 and the bands are as follows:
Band 1- 0.01p up to £35000 is 20%
Band 2- £35000.01 up to £115000 is 40%
Band 3- £115000.01 to excess is 50%
Emergency Tax Code - 747L
Let me know if you need any more help.
Marilyn

Edited at 04 Oct 2012 09:14 PM GMT

• A clever person solves a problem.

  A wise person avoids it.

  Albert Enstein

• 
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• # 85728
• Fri 05 Oct 2012 01:00 PM

Hi,

No I still have the same problem.

Here are the details:

Tax Bands:

Band 1- 0.00-35000.00                               20%

Band 2- 35000.01-150000.00                      40%

Band 3- 150000.01- Excess                         50%

NI Bands:                                                          Yearly

Lower earnings limit                                           5304.00

Earnings Threshold                                             7228.00

Upper accrual point                                            40040.00

Upper earnings limit                                           42484.00

NI Rates:       NI category : A

Yearly earnings                                       Employer rate                              Employee rate

5304.01-7228.00                                               0.00                                                 0.00

7228.01-40040.00                                            13.80                                               12.00

40040.01-42484.00                                          13.80                                               12.00

42484.01and over                                             13.80                                                2.00

First salary is on 08/04/11                 

Gross -  £650.00              PAYE - £101.20            NI - £61.38           Net - £487.42

Second week is on 15/04/11

Gross -  £650.00              PAYE - £72.40                NI – £61.38          Net - £516.22

Why PAYE deductions are different? They should be exactly the same…

Please help me because I don’t know what to do 

Thank you very much!!!

Regards

Indre

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• # 85730
• Fri 05 Oct 2012 02:45 PM

Hi Indre,

I have processed the 2 weeks as per your info into my payroll program for that year and it comes out correct.
The only thing I can think of that you either entered the wrong date for payroll or there is something else not right in the setup.
Email me at:  
mms@mmauran.plus.com
Regards,
Marilyn 

• A clever person solves a problem.

  A wise person avoids it.

  Albert Enstein

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  Quote