Chapter 5 Flashcards
When must an employer register as an employer ?
Before the first payday
An employer can not register as an employer ____ months before it starts to pay its employees
Two
What type of payroll does HMRC require employers to use ?
Computerised
Why does HMRC require employers to use a computerised payroll software ?
It allows employers to transmit up to date information electronically to HMRC about who they employ and what they have paid the employees
If a business decides to hire a commercial payroll bureau is its job to do for the business ?
Takes the payroll information from the business and use a software to give it to HMRC on behalf of the client
What dates does the tax year run from and to ?
6th of April to the following 5th of April
How much is a penalty for failure to maintain payroll records ?
£3,000
Employees have the right to be told …….
What records are kept about them and how they are used & the confidentiality of these records
Everyone responsible for using personal data including detailed about employees for payroll purposes has to follow rules called……..
Data protection principles
What do data protection principles help ensure ?
That data is used fairly lawfully and transparently and also used for specific explicit purposes and is accurate and kept up-to-date
What is gross pay ?
Pay before any deductions like tax and national insurance
Apart from hours worked, what other payments can share in the gross pay?
Holiday pay, sick pay, maternity pay and paternity pay
What is taxable pay?
Taxable pay is the gross payment of an employee minus any tax-free elements
What is net pay?
The amount of the employee takes home this is the total pain allowances minus the total deductions
What is a statutory deduction on an employees pay?
A deduction that the employee does not have to give written or authorisation for as it is required by law
