Topic outline

  • General

    Introduction

    In this unit you will work as a trainee payroll assistant for a traditional toy manufacture named Tinka Toys. The company which originally started as a family business now employs over 150 people. Tinka Toys prides itself on using traditional methods to create a wide range of traditional wooden toys including rocking horses, spinning tops, jigsaws and stacking blocks. More recently they have started creating wooden kitchens, work benches, tools and bespoke pieces for the rich and famous. As the trainee payroll assistant you will need to learn about all stages involved in paying the company employees, from understanding the different types of pay to calculating individual wages.

     Rocking Horse

    Learning Objectives

    You will learn:

    • About the roles of a payroll department
    • The difference between a wage and a salary
    • About the different types of pay How to calculate wages
    • The benefits of using a spreadsheet
    • About the different methods of payment
    • About the different terms used on a wage slip How to calculate commission
    • About the different types of fringe benefits

    Preparation

    Please ensure you have set up a folder in your home area named Tinka Toys

    Key words

    BACS

    Bankers Automated Clearing System. A system where money is directly transferred from one bank into another

    Net Pay

    The amount of money an employee gets after all the deductions have been taken out

    Bonus

    A lump sum added to pay

    Piece Rate

    Wages for workers who are paid for each thing they make

    Commission

    Additional money earned for every item they sell

    Profit Sharing

    Each worker is given an agreed share of the company profits

    Fringe Benefit

    Extra benefits given to employees on top of their wages/salary

    Salary 

    Wages for workers who are paid a fixed amount each month

    Gross Pay

    The amount of money an employee is paid

    Time Rate Pay

    Wages for workers who are paid an hourly rate

    These are just a small number of keywords that are covered in this unit. Completing the tasks will introduce you to many others.

  • Topic 1

    Wages and Salaries

    People who do different jobs in the company will be paid in different ways. Some workers may receive the same amount of pay each month whilst other workers pay might be dependent on the number of hours they work or how well they work. In this task you explore the different methods for calculating a workers pay and explain what work incentive each method will give them.

     Wage

    By the end of this task you will be able to:

    • Describe the difference between a wage and a salary
    • Explain the different methods for calculating a workers pay
    • Describe incentives for each method of pay

  • Topic 2

    Calculating Wages

    One of the main duties of working within a payroll environment will be to ensure that each employee is paid the correct amount. This can be very complicated to calculate especially when different workers are being paid different amounts and by different methods. In this task you will create a spreadsheet model to calculate the wages of the workers paid by the time rate method. You will also create a graph to illustrate the pay earned by each employee.

     Calculator

    By the end of this task you will be able to:

    • Create a spreadsheet model to calculate pay
    • Create a graph to present the amount earned by each employee
    • Describe the benefits of using a spreadsheet to calculate and present information

  • Topic 3

    Methods of Payment

    Most employees now prefer to be paid directly into their bank account rather than receiving a handful of cash. Alongside payment every employee must also receive a payslip detailing the gross pay and details of any deductions. In this task you will decide on the most suitable method of payment for two different kind of workers. You will also explore the terms used on a pay statement so that you will be able to answer any individual payment queries.

     Bank

    By the end of this task you will be able to:

    • Explain┬áthe different methods of payment┬á
    • Outline┬áthe different terms used on a payslip

  • Topic 4

    Fringe Benefits

    All employees of the company receive a 25 percent discount of all of its products. Employees also have to opportunity to join the local gym at take out a health care plan at a subsidised rate. In addition managers and directors either receive a generous car allowance or have a company car. These benefits are designed to motivate and reward the employees. In this task you explore the different ways of rewarding employees. You will also decide on a new commission arrangement to offer employees.

    Car

    By the end of this task you will be able to:

    • Explain the term 'fringe benefit'
    • Discuss whether fringe benefits are an effective way to reward employees
    • Explain what is meant by profit sharing
    • Explain the difference between and cash bonus and commission
    • Caluculate percentages using a spreadsheet model

  • Topic 5

    Creating a Podcast

    In this task you will produce a podcast which you will be able to use for revision purposes. You will create a podcast on one of the following topics:

    • Different methods for calculating a workers pay
    • Methods of payment
    • Pay slip terminology
    • Fringe benefits

    This task will allow you to revisit a particular topic and clarify your understanding, but also present the content in a different format which you may find helpful for revision.

    Audacity

    By the end of this task you will be able to:

    • Consolidate knowledge on a particular topic
    • Identify key points from the chosen topic to write a script
    • Create a podcast using sound recording software
    • Convert your recording into an mp3 file
    • Reflect on your own learning methods and styles
  • Topic 6

    End of Unit Assessment

    This assessment has been designed to test what you have learnt throughout the unit and comprises of practical and theory based questions. The assessment is 50 minutes in length and must be completed under controlled conditions. All evidence must be submitted electronically for marking.

     Submission

    By the end of this task you will be able to:

    • Assess your learning throughout this unit
    • Critically reflect on the unit