Payroll

1. V21a Published June 2021
Assessment of Pay and Benefits
Module Workshop Day
Exercise Questions
In Partnership with

2. Assessment of Pay – MW Exercise Questions
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Manual calculations
Group Exercise 1(a)
Calculate the tax due for the following employee’s October pay.
Gross pay for October: £5,000 Tax code: S441L
Previous taxable pay: £10,000 Previous tax paid: £2,027.53

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Group Exercise 1(b)
1 A weekly-paid employee has a tax code of K490 and is an English taxpayer.
a) In Week 1, gross pay is £240. Calculate the tax due.
b) In Week 2, the employee receives only £50. Calculate the tax due.

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c) In Week 3, the employee’s earnings plus a bonus total £340. Calculate the tax due.

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Group Exercise 1(c)
Morgan is weekly-paid and has asked for one week's holiday money to be paid in advance,
along with the normal pay for this week. Morgan’s normal pay is 40 hours at £9.00 per hour.
One week's holiday pay is equal to one week's normal pay; Morgan is 23 years old.
Calculate the net pay, assuming:
Tax code: C455T
Date of payment: 9 April
Payroll Giving scheme member: no

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Group Exercise 2
Identify the elements you might be likely to see in the contracts of employment for each of
the following examples of workers.
Worker example 1
A cashier working for a supermarket chain; part time hours, three months’ service to date
Worker example 2
A bank manager with 35 years’ service

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Worker example 3
A payroll manager for a chain of restaurants with 10 years’ service and qualified to CIPP
Diploma level
Worker example 4
A technician on the production line of a car manufacturing company; two years’ service,
currently on an apprenticeship.

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Group Exercise 3
Calculate the different elements of gross pay from each of the briefs provided below. Write
your answers on a flip chart showing your calculations
Calculation 1
Chris works for the ‘Brand New Customers Only’ Bank in the city. Their annual salary is
£60,000 and they receive an annual car allowance of £6,000. Chris is paid monthly.
Calculate Bob’s gross pay elements for this month’s calculation.
Calculation 2
Pat has just started work as a full-time office manager on 1 June 2021 for the ‘Tin Can
Recycle Plant’. Pat’s salary is £30,000 per annum with a clothes cleaning allowance of £5.00
per week because the factory is dirty from the recycling.
Unfortunately, Pat has caught ‘flu and been sick from 11 June 2021 to 21 June 2021
(inclusively).
In Pat’s contract, it states that Occupational Sick Pay will only be paid once an employee
has completed six months’ service and that the clothes cleaning allowance is only due when
employees are in work (so not due when on holiday or sick).
Calculate Pat’s gross pay elements for June.

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Calculation 3
Sam works for the high street clothes retailer ‘Trendy Togs’. For the last year, Sam has been
working as a sales assistant paid hourly at a rate of £8.95 per hour. In June, Sam gained a
promotion to Sales Manager, effective from 14 June 2021 and now receives an annual
salary of £22,000.
Before the promotion, Sam worked hours as follows:
Week ending 28 May 2021 – 6 hours
Week ending 4 June 2021 – 40 hours
Week ending 11 June 2021 – 28 hours
Calculate Sam’s gross pay elements for payment this month.

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Calculation 4
At the ‘Joyful Eater Restaurant’, there is a pay grade table for the different jobs that are
carried out as follows:
Type of job Rate per hour
Waiting on tables £8.96
Bar serving duties £9.14
Kitchen duties £8.91
Alex normally works 20 hours per week as a waiter. This particular week, the restaurant has
been short staffed due to a virus so Alex has also worked 15 hours in the kitchen and
10 hours at the bar. Overtime is not normally paid until staff have worked 40 hours in a
week. After that, hours are paid at time and a half.
Calculate the gross pay elements due to Alex this week.