Introduction To Payroll Systems - Qp2

Paying less than the minimum wage is indeed illegal. The minimum wage is the lowest wage that employers are legally required to pay their employees. It is set by the government to ensure that workers receive fair compensation for their work. Failing to pay the minimum wage is a violation of labor laws and can result in penalties and legal consequences for employers. Therefore, it is true that paying less than the minimum wage is illegal.

Bonuses are commonly regarded as a form of incentive for employees. They are typically given as a reward for achieving certain goals or exceptional performance. Bonuses can motivate staff to work harder, increase productivity, and enhance job satisfaction. By providing financial rewards, organizations aim to encourage employees to go above and beyond their regular duties, resulting in improved overall performance and increased loyalty towards the company. Therefore, it can be concluded that bonuses are indeed seen as an incentive to staff.

Piecework is a system of payment where employees are compensated based on the amount of work they produce. This means that the more output an employee generates, the more they will be paid. Therefore, the statement that piecework pays employees according to their output is true.

To be eligible for SPP (Statutory Paternity Pay), the father must have started working for the employer at least 26 weeks before the end of the qualifying week and must still be employed at the time the baby is born. This means that if the father meets these conditions, he will be entitled to receive SPP.

SSP (Statutory Sick Pay) is a form of financial support provided to employees who are unable to work due to illness or injury. It is considered as part of the employee's gross pay, which means it is subject to taxation and National Insurance contributions. Therefore, the statement that SSP is treated as part of gross pay and is subject to tax and National Insurance is true.

The correct answer is "Period of incapacity to work". PIW stands for "Period of incapacity to work". This term is commonly used in the context of employee benefits or insurance claims to refer to a period of time during which a person is unable to work due to illness, injury, or disability.

The statement is true because under the law, employees have a statutory right to take a reasonable amount of time off work to deal with emergencies involving their dependents. This includes situations where a dependent falls ill, has an accident, or requires urgent care. This right allows employees to prioritize their family responsibilities without fear of losing their job or facing any negative consequences.

The explanation for the given correct answer is that net pay is the amount payable to the employee after all deductions (such as taxes, insurance, and retirement contributions) have been made. It is the actual amount that the employee receives in their paycheck. Therefore, the statement that net pay is the total amount payable to the employee before any deductions have been made is false.

An employee can be required to provide a doctor's sick note even if they are off work for less than a few weeks.

The statement suggests that the pay for extra hours is usually higher than normal hours. This implies that employees are typically compensated at a higher rate for working additional hours beyond their regular work schedule. Therefore, the correct answer is False.

The statement is false because the maximum entitlement to parental leave is not 16 weeks. The actual duration of parental leave entitlement varies from country to country and can also depend on factors such as the number of children and the employment status of the parent. Therefore, without further information, we cannot determine the exact maximum entitlement to parental leave.

The correct answer is for the first 6 weeks, 90% of average weekly earnings. This means that for the first 6 weeks of receiving SMP (Statutory Maternity Pay), the individual will receive 90% of their average weekly earnings. This is a common practice in many countries to provide financial support to individuals during their maternity leave. After the first 6 weeks, the rate of SMP may change or decrease.

The statement is false because the correct answer is that the weekly rate of SAP and SPP is the higher of 80% of average weekly earnings and £138.18, not the lower.

The statement suggests that the basic pay method of processing payroll is called a 'positive payroll', but the correct answer is False. This means that the basic pay method of processing payroll is not referred to as a 'positive payroll'.