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MODULE NAME: MODULE CODE:
PAYROLL ADMINISTRATION, GOVERNANCE AND ETHICS PAGE5112/p
ASSESSMENT TYPE: EXAMINATION (PAPER ONLY)
TOTAL MARK ALLOCATION: 120 MARKS
TOTAL HOURS: 2 HOURS (+10 minutes reading time)
INSTRUCTIONS:
1. Please adhere to all instructions in the assessment booklet.
2. Independent work is required.
3. Ten minutes is dedicated to reading time before the start of the assessment. You may make
notes on your question paper, but not in your answer sheet. Calculators may not be used
during reading time.
4. You may not leave the assessment venue during reading time, or during the first hour or
during the last 15 minutes of the assessment.
5. Ensure that your name is on all pieces of paper or books that you will be submitting. Submit
all the pages of this assessment’s question paper as well as your answer script.
6. Answer all the questions on the answer sheets or in answer booklets provided. The phrase
‘END OF PAPER’ will appear after the final set question of this assessment.
7. Remember to work at a steady pace so that you are able to complete the assessment within
the allocated time. Use the mark allocation as a guideline as to how much time to spend on
each section.
Additional instructions:
1. This is a CLOSED BOOK assessment.
2. Calculators are allowed.
3. For multiple-choice questions, give only one (1) response per question. The marker will
ignore any question with more than one answer, unless otherwise stated. You should,
therefore, be sure of your answer before committing it to paper.
4. Answer All Questions.
5. Show all calculations, where applicable (marks may be awarded for this).
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Examination Outcomes
Learning Unit/s Objectives covered in this exam: All learning units.
At the end of this assessment, students should be able to:
• Demonstrate knowledge and understanding of the development, role and functions of
Bookkeeping as a Business Information System.
• Demonstrate knowledge and understanding of the principles of payroll and statutory returns.
• Demonstrate a basic understanding of the legal framework for business operations in the
South African context as it relates to bookkeeping in general and to payroll administration
specifically.
• Apply accounting principles for payroll.
• Evaluate the ethical implications for the tax practitioner working with payroll as a bookkeeping
function.
• Identify the legislation that regulates the employment relationship as it relates to payroll in
business.
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Question 1 (Marks: 20)
Match the description in column B with the correct term/concept from column A. In your answer
booklet, write down only the question number and, next to it, the letter of the correct answer.
Column A Column B
Q.1.1 Parental leave A At least 21 consecutive days on full pay.
Q.1.2 Annual leave B This leave type is applicable to an employee who
becomes a parent.
Q.1.3 Family responsibility C Ten consecutive weeks of leave are allowed for one of
leave the adoptive parents if the child is younger than two
years old.
Q.1.4 Maternity leave D Full-time employees who have been employed longer
than four months are entitled to 3 days of this leave.
Q.1.5 Adoption leave E A worker who occasionally works on a Sunday must
receive double pay.
Q.1.6 Sunday work F 45 hours normal time in any given week.
Q.1.7 Public holidays G An employee is entitled to four consecutive months of
this leave, which may start at any time from four weeks
before the expected date of birth.
Q.1.8 Ordinary hours H An employer may not force an employee to work on
such a day, except in accordance with an agreement
between the two.
Q.1.9 Gross salary I Fringe benefit
Q.1.10 Payroll form J Total salary before deductions.
K Weekly remuneration
L Discloses the number of hours worked by an employee
during a specified period.
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Question 2 (Marks: 10)
Payroll practices are determined by various rules, regulations and legislation. Indicate whether the
following statements relating to the rules, regulations and legislation determining payroll
practices are TRUE or FALSE. Should the answer be false, provide the correct statement that
would make the statement true, for example: 3 False because A + B = C not D.
Please note that mark allocation per question is not provided as it will guide students towards the
correct answer. This question in total is equal to 10 marks.
Q.2.1 UIF contributions constitute 5% (2% paid by employee and 3% paid by employer)
on every employee’s gross remuneration.
Q.2.2 Gross salary refers to the amount paid out to the employee after deductions have
been accounted for.
Q.2.3 Skills Development Levy (SDL) is paid out to employees who are unable to work
due to ill health, maternity leave or adoption leave.
Q.2.4 A worker who occasionally works on a Sunday must receive double pay.
Q.2.5 An employer must grant an employee at least 21 consecutive days of annual leave
on full pay in respect of each leave cycle.
Q.2.6 The Compensation for Occupational Injuries and Diseases Fund pays benefits to
members of the South African Police Service.
Question 3 (Marks: 50)
Q.3.1 Explain any five benefits where the Unemployment Insurance Fund relief can (20)
become effective for workers.
(Note: One mark for listing the benefit and 3 marks for the explanation.)
Q.3.2 Major Management Consulting (Pty) Ltd has provided the following table with (30)
incomplete information in relation to PAYE transactions for seven (7) of its
permanent employees.
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As the company’s new Payroll Administrator, you are requested to verify values for
the Total Annual Earnings, calculate the amounts for tax payable per annum/year
and per month for each of the below employees.
Show your calculations for that particular tax year and/or month by referring or
using the sliding scale of the tax year that ended on 28 February 2023, as per below.
2023 tax year sliding scale:
Taxable income (R) Rates of tax (R)
1 – 226 000 18% of taxable income
226 001 – 353 100 40 680 + 26% of taxable income above 226 000
353 101 – 488 700 73 726 + 31% of taxable income above 353 100
488 701 – 641 400 115 762 + 36% of taxable income above 488 700
641 401 – 817 600 170 734 + 39% of taxable income above 641 400
817 601 – 1 731 600 239 452 + 41% of taxable income above 817 600
1 731 601 and above 614 192 + 45% of taxable income above 1 731 600
(Note: 4 marks for the correct calculation and 1 mark for the correct amount
payable per month.)
Name Age Monthly Annual Rate of Amount payable Amount
salary equivalent tax per year payable
per month
Duncan Mokaba 29 R8 000 R96 000 Given (a) ?
Dumi Mulaudzi 34 R19 800 R237 600 Given (b) ?
Hen Baloyi 30 R31 000 R372 000 Given (c) ?
Ben Spanner 65 R42 000 R504 000 Given (d) ?
Gerald Ford 76 R63 500 R762 000 Given (e) ?
Bheki Sibanyoni 48 R74 000 R888 000 Given (f) ?
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Question 4 (Marks: 30)
Q.4.1 Roles and responsibilities for payroll administrators are individually developed by (18)
each company.
Name nine duties of a payroll administrator.
Q.4.2 Briefly explain the purpose of each of the following:
Q.4.2.1 Unemployment Insurance Fund (4)
Q.4.2.2 Value-Added Tax (4)
Q.4.2.3 Pay-As-You-Earn (4)
Question 5 (Marks: 10)
Discuss the meaning of any five of these six business principles and how they should be reflected
in a code of ethics.
Integrity
Transparency
Service delivery
Competence
Accountability
Fairness
END OF PAPER
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