EPayMe National Payroll Week Quiz

1. Where does the word TAX derive from?

From the latin word TAXO a financial charge or levy imposed on individuals to fund various Public expenditures.

Governmemt Word used to reduce employees pay

2. What percentage of your salary is deducted for employee National Insurance contributions?

12% on earnings over £155

15.5% on earnings over £100.00

3. What do the letters after your tax code mean?

This indicates the level of tax allowance that employees of pensioners are entitled to.

Your position in the tax alphabet

4. If your tax code letter is “D0”, what is the rate percentage of income tax applied and what percentage of your income is taxed at this rate?

This is used when all your income is taxed at 40% (common if you have a second job.

Do not Offer

5. What is Automatic enrolment and how long do you have to be working for a company before this applies.

This is in relation to the Pension scheme, and it can depend on the company policy it can be deferred

This is when you sign your contract of employment with new company

6. Including a standard tax free allowance, how much can you earn up to before entering the 40% tax bracket? (to the nearest £1000)?

£38,000.00

£42,000.00

7. How many weeks Statutory Sick pay are you entitled to?

8. During shorter months of the year, your pay will be less?

True

False

9. What does PAYE stand for?

Pay As You Earn

Process Actual Yearly Earnings

10. What is the difference between Gross & Net pay?

Gross is the total payment received in to your bank account

Gross pay is the amount earned before deductions. Net pay is the total paid to the employee

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