Introduction To Payroll Systems - Qp4

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| By Jackson Matthews
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Jackson Matthews
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Quizzes Created: 595 | Total Attempts: 682,368
Questions: 8 | Attempts: 2,868

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Payroll Quizzes & Trivia

Are you a human resource or accounting officer and need to practice on your understanding of the payroll systems? The introduction to payroll systems below is set to help you revise and advance your knowledge. All the best.


Questions and Answers
  • 1. 

    Where an employee is unwilling or unable to pay debts out of their net pay the Courts may issue an ‘attachment of earnings order (AEO)’ to the employer requiring the employer to make deductions from the employee’s pay and pay them to the courts direct.

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    An attachment of earnings order (AEO) is a legal mechanism used by courts to collect unpaid debts from an employee's wages. If an employee is unable or unwilling to pay their debts out of their net pay, the courts can issue an AEO to their employer. This order requires the employer to make deductions from the employee's pay and pay them directly to the courts. Therefore, the statement is true.

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  • 2. 

    GAYE stands for ______.

    • A.

      Get as you earn

    • B.

      Give as you estimate

    • C.

      Get as you estimate

    • D.

      Give as you earn

    Correct Answer
    D. Give as you earn
    Explanation
    GAYE stands for "Give as you earn." This suggests that the acronym represents a system or program where individuals contribute or donate money as they earn it.

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  • 3. 

    Student loan deductions can only be made on instructions by HMRC or if there is a Yes in the Student Loan box on the P46. 

    • A.

      True

    • B.

      False

    Correct Answer
    B. False
    Explanation
    Student loan deductions can only be made on instructions by HMRC or if there is a Yes in the Student Loan box on the P46. This statement is false because student loan deductions can also be made if the employee has a student loan and the employer receives instructions from the Student Loans Company (SLC) to make deductions. It is not solely dependent on HMRC or the P46 form.

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  • 4. 

    Student loan is payable at a rate of ______ above the employee earnings threshold.

    • A.

      6%

    • B.

      9%

    • C.

      12%

    • D.

      15%

    Correct Answer
    B. 9%
    Explanation
    The correct answer is 9% because it is the rate at which the student loan is payable above the employee earnings threshold. This means that if an employee's earnings exceed the threshold, they will be required to pay 9% of their earnings towards their student loan.

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  • 5. 

    The employee’s authority is required for deductions to recover wages and expenses which were overpaid by mistake.

    • A.

      True

    • B.

      False

    Correct Answer
    B. False
    Explanation
    The statement is false because an employee's authority is not required for deductions to recover wages and expenses that were overpaid by mistake. In such cases, an employer has the legal right to make deductions from an employee's wages without their consent, as long as the deduction is reasonable and lawful. However, it is generally good practice for employers to inform and consult with employees before making any deductions.

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  • 6. 

    Statutory deductions include: (Select four)

    • A.

      PAYE

    • B.

      GAYE

    • C.

      Class 1 NI contributions

    • D.

      Court and Child Support Agencies

    • E.

      Trade Unions

    • F.

      Student Loan Deductions

    Correct Answer(s)
    A. PAYE
    C. Class 1 NI contributions
    D. Court and Child Support Agencies
    F. Student Loan Deductions
    Explanation
    Statutory deductions are mandatory deductions from an employee's salary or wages as required by law. PAYE (Pay As You Earn) is a system used in the United Kingdom to deduct income tax from employees' salaries. Class 1 NI contributions are National Insurance contributions deducted from employees' earnings to fund various social security benefits. Court and Child Support Agencies deductions refer to court-ordered deductions for things like child support payments or fines. Student Loan Deductions are deductions made from an employee's salary to repay their student loan. Trade Unions are not statutory deductions, so they are not included in the answer.

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  • 7. 

    Puck earns £70,250 per annum.  His tax code is 1000L and it is 30 April 2014. Puck's net monthly pay is______. (Ignore NIC contributions and personal allowance for the sake of simplicity.)

    • A.

      2,000.50

    • B.

      4,000.35

    • C.

      4,035.00

    • D.

      4,683.33

    Correct Answer
    D. 4,683.33
  • 8. 

    Some deductions are statutory, and must be made and some are voluntary.

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    This statement is true because deductions can be categorized into two types: statutory and voluntary. Statutory deductions are mandatory deductions that employers are legally required to make from an employee's paycheck, such as taxes and certain benefits contributions. On the other hand, voluntary deductions are deductions that an employee chooses to have taken out of their paycheck, such as retirement contributions or health insurance premiums. Therefore, the statement accurately states that some deductions are statutory and must be made, while others are voluntary.

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