Chapter 25 - The Employer☀️

Question 1

What is an entrepreneur?

Answer 1

An entrepreneur is a person who comes up with an idea and sets up a business to develop that idea at a profit.

Question 2

Name 3 rights of an employer.

Answer 2

1. To hire the most suitable people to fill vacancies that may arise
2. To dismiss employees due to bad conduct or a poor standard of work
3. To receive loyalty from the employees e.g. Respecting Property

Question 3

Name 3 responsibilities of an employer.

Answer 3

1. To obey all employment laws e.g. Holidays
2. To be an ‘equal opportunities employer’ i.e. Not to discriminate on the grounds of gender, race, religion etc.
3. To pay a fair wage for the work that is done

Question 4

What is a human resource manager?

Answer 4

The human resource manager is responsible for the employees of the firm.

Question 5

Name some of the main steps taken when employing new staff.

Answer 5

1. Draw up a plan for each job showing what the person is required to do and what qualifications and experience they should have (job description).
2. Draw up a job advertisement, making sure to say ‘person’ and to not discriminate
3. Decide where the advertisement should be placed.
4. Collect all the replies which include curriculum vitae. Draw up a shortlist.
5. Arrange for interviews to be held
6. Send the most suitable staff contracts
7. Arrange for the new staff to be introduced to the other staff

Question 6

What does ‘discriminate’ mean?

Answer 6

Discriminate means to treat one person less favourably then another, for example because one is a man and one is a woman

Question 7

What is a probationary period?

Answer 7

A probationary period is a trial period. The new employee may be let go after this period if they are not suitable for the job.

Question 8

What is a wage?

Answer 8

If the payment is based on the number of hours worked or the quantity of goods produced, it is called a wage.

Question 9

What is a salary?

Answer 9

If the employee receives a fixed amount act time they are paid, it is called a salary.

Question 10

What is an employer?

Answer 10

An employer is a firm who hire others, i.e. Employees, to work for them in return for payment.

Question 11

What is basic pay?

Answer 11

The amount that the employee receives for a normal working week before any deductions have been made is called their basic pay. When an employee works extra hours, this is known as overtime.

Question 12

What is gross pay?

Answer 12

Basic pay plus any overtime and bonus payments, is called their gross pay. This is what they earn before any deductions have been taken away.

Question 13

What is time rate?

Answer 13

Where an employee is paid by the hour. The more hours you work, the more you get paid.

Question 14

What is piece rate?

Answer 14

When an employee is paid for each unit of the firm’s product they produce.

Question 15

What is commission?

Answer 15

Commission is where an employee is paid a percentage of the sales they make during the week or month.

Question 16

What is the net pay?

Answer 16

An employee’s net pay (take home pay) is the actual amount of money they take home.

Question 17

What are statutory deductions?

Answer 17

Deductions that the law says must be taken. They are:
PAYE (Pay as you Earn)
PRSI (Pay Related Social Insurance)/ USC (Universal Social Charge)

Question 18

What is PRSI/USC used for?

Answer 18

• To pay Jobseeker’s Benefit
• To pay a regular income to those on maturity leave
• To pay a regular income to those who are retired

Question 19

What are non-statutory deductions?

Answer 19

These are voluntary deductions. These include:

• Union subscriptions
• Private pension payments
• Health insurance such as VHI

Question 20

What is a payslip?

Answer 20

A document that shows an employees:

• Gross pay
• Deductions
• Net pay

Question 21

What are tax credits?

Answer 21

Employees do not have to pay all of their income tax. A certain amount, known as tax credit, is subtracted from the tax owed and the amount remaining is what the employee has to pay.

Question 22

What are the methods of paying staff?

Answer 22

• In cash
• By cheque
• By electronic transfer to the employees account PAYPATH

Question 23

Name one advantage and disadvantage of cash payment.

Answer 23

Adv: Being paid in cash may suit employees who do not have a bank account
Dis: There is a risk of theft, both from the employer while the cash is on premises and from the employee once they have been paid.

Question 24

Name one advantage and disadvantage of cheque payment.

Answer 24

Adv: It is a very safe method of payment since the cheques are only of use to the person named on the cheque.
Dis: Employees must go to the bank to lodge their cheque before they can spend their money.

Question 25

Name one advantage and disadvantage of Paypath.

Answer 25

Adv: Employees can get access to their money at any ATM
Dis: You must have a bank account.