1. Copy and fill in the blanks. a. ___________ is an employee’s wages paid directly into their bank account.
b. The amount of money earned by an employee, not including additions, is called ___________ pay.
c. ___________ pay is pay before deductions. ___________ pay is pay after deductions. d. Statutory ___________ are deductions that must be paid. For example, income tax.
e. ___________ deductions are deductions that an employee chooses to pay. For example, health insurance.
f. Tax credits ___________ the amount of tax a person owes to the government. g. A ___________ is a record of an employee’s pay.
2. Name and explain two statutory deductions that may be taken from an employee’s gross pay. 3. Name and explain two non-statutory deductions that may be taken from an employee’s gross pay. 4. Name two advantages of paying commission to employees.
5. Look at the payslip below and answer the questions that follow. EMPLOYEE: Pauline White
PAY BASIC OVERTIME € DEDUCTIONS
900.00 PAYE 225.00 PRSI USC
SAVINGS GROSS PAY 1,125.00 TOTAL DEDUCTIONS €
280.00 45.00 61.88 50.00
436.88 Week 11
NET PAY 688.12
a. What is Pauline’s basic pay per hour if her normal working week is 40 hours? b. How many hours overtime did Pauline do if overtime is paid at double time? c. What percentage of Pauline’s total deductions are savings? d. Are there any other non-statutory deductions you would advise Pauline to pay? Give reasons. e. Calculate Pauline’s yearly net pay.
f. Draft a bar chart that shows the four deductions from Pauline’s pay (you can round USC to the nearest euro).
g. Prepare another payslip for Pauline, taking the following information into account: i. Pauline did three hours less overtime.
ii. The USC rate dropped to 3.5%. iii. PAYE is €230. iv. PRSI is 4% of gross. v. Savings decreased to €40.
