The purpose of the Trial Exam Paper

is to assist you in your preparation for

the ICB Summative Assessment.
Please note that this is a ‘mock’ exam
and not an actual assessment. It is
also by no means exhaustive or
prescriptive, and the ICB may present
alternative assessment questions. The
Payroll & Monthly Trial Exam Paper is an assessment
preparation tool and should not replace
SARS Returns your studying the content and
outcomes.

Your final ICB assessment will consist

Trial assessment of 3 sections. Section A will be Multiple
choice questions. Section B will be

Solutions compulsory long questions. Section C

will comprise of 2 questions; you will
have a choice to answer 1 of the 2
questions. The below mark allocations
are merely illustrative and may differ
from your final assessment. It will be 3
½ hours long, and consist of 180
marks.

SECTION A: SHORT QUESTIONS - COMPULSORY

QUESTION 1: 20 MULTIPLE CHOICE QUESTIONS 40 MARKS

SECTION B: ALL QUESTIONS ARE COMPULSORY

QUESTION 1: PAYROLL CALCULATIONS AND RETURNS 40 MARKS

QUESTION 2: SHORT THEORY QUESTIONS 40 MARKS

SECTION C: CHOOSE 1 OF 2 QUESTIONS

QUESTION 1: VAT CALCULATIONS AND RETURNS & THEORY QUESTIONS 60 MARKS

QUESTION 2: PAYROLL ACCOUNTING & THEORY QUESTIONS 60 MARKS
Section A: Short questions - Compulsory

QUESTION 1 MULTIPLE CHOICE QUESTIONS

1.1. C

1.2. B

1.3. C

1.4. A

1.5. D

1.6. B

1.7. D

1.8. A

1.9. D

1.10. A

1.11. C

1.12. B

1.13. C

1.14. A

1.15. B

1.16. B

1.17. D

1.18. D

1.19. A

1.20. D
Section B: All questions are Compulsory

QUESTION 1 PAYROLL CALCULATIONS AND RETURNS

(a)

Taxable
Taxable Taxable
Travel portion of Pension fund PAYE/SDL UIF
February 2016 Age Salary Commission value of portion of PAYE deduction
allowance travel deduction remuneration remuneration
company car medical aid
allowance
M.Girlls 51 R 9 908.00 R 1 982.00 R 1 239.00 R 1 585.60 R 0.00 R 1 684.00 R 743.10 R 13 673.50 R 13 177.60 R 816.48
W.Antunes 67 R 54 492.00 R 13 623.00 R 0.00 R 10 898.40 R 0.00 R 3 270.00 R 4 086.90 R 64 573.50 R 14 872.00 R 19 175.48
C.Brown 76 R 29 723.00 R 4 458.00 R 3 418.00 R 3 566.40 R 0.00 R 4 458.00 R 2 229.23 R 38 936.17 R 14 872.00 R 7 977.58
G.Mangwane 33 R 34 677.00 R 0.00 R 0.00 R 0.00 R 1 820.00 R 5 548.00 R 2 600.78 R 39 444.22 R 14 872.00 R 7 977.42
R.Collins 42 R 11 394.00 R 0.00 R 968.00 R 0.00 R 0.00 R 1 253.00 R 854.55 R 12 760.45 R 12 647.00 R 922.13
S.Berndt 20 R 11 394.00 n/a n/a n/a n/a n/a n/a R 11 394.00 n/a R 2 848.50
T.Breede 19 R 12 385.00 n/a n/a n/a n/a n/a n/a R 12 385.00 R 12 385.00 R 3 096.25

Totals R 163 973.00 R 20 063.00 R 5 625.00 R 16 050.40 R 1 820.00 R 8 485.00 R 10 514.56 R 193 166.84 R 82 825.60 R 42 813.84
Calculations:

1. Calculation of monthly PAYE/SDL and UIF remuneration

Taxable
Monthly Monthly PAYE/SDL UIF
portion of Monthly
Monthly taxable value taxable value remuneration remuneration
Monthly salary monthly pension fund
Employee Age commission of company of medical aid (g) = (a) + (b) + (h) = (g) - (c) +
(a) travel allowable
(c) car fringe fringe benefit (c) + (d) + (e) - (f) but limited
allowance deduction (f)
benefit (d) (e) (f) to R 14 872
(80 %) (b)
M.Girlls 51 R 9 908.00 R 1 585.60 R 1 239.00 R 0.00 R 1 684.00 R 743.10 R 13 673.50 R 13 177.60
W.Antunes 67 R 54 492.00 R 10 898.40 R 0.00 R 0.00 R 3 270.00 R 4 086.90 R 64 573.50 R 14 872.00
C.Brown 76 R 29 723.00 R 3 566.40 R 3 418.00 R 0.00 R 4 458.00 R 2 229.23 R 38 936.17 R 14 872.00
G.Mangwane 33 R 34 677.00 R 0.00 R 0.00 R 1 820.00 R 5 548.00 R 2 600.78 R 39 444.22 R 14 872.00
R.Collins 42 R 11 394.00 R 0.00 R 968.00 R 0.00 R 1 253.00 R 854.55 R 12 760.45 R 12 647.00
S.Berndt 20 R 11 394.00 - - - - - R 11 394.00 n/a
T.Breede 19 R 12 385.00 - - - - - R 12 385.00 R 12 385.00

Totals R 163 973.00 R 16 050.40 R 5 625.00 R 1 820.00 R 16 213.00 R 10 514.56 R 193 166.84 R 82 825.60
2. Calculation of monthly PAYE deduction

Annual PAYE as Monthly PAYE

Deductible Annual taxable
Monthly PAYE per the sliding Total applicable Annual PAYE deduction Medical Aid Monthly PAYE
Annual bonus pension on income
Employee remuneration scale/flat rate rebates payable before medical Tax credits deduction
(b) annual bonus (d) = [(a) x 12] +
(a) before rebates (f) (g) = (e) - (f) Aid Tax credits (i) (j) = (h) - (i)
(c) (b) - (c)
(e) (h) = (g)/12
M.Girlls R 13 673.50 R 0.00 R 0.00 R 164 082.00 R 29 534.76 R 13 257.00 R 16 277.76 R 1 356.48 R 540.00 R 816.48
W.Antunes R 64 573.50 R 54 492.00 R 4 086.90 R 825 287.10 R 259 421.71 R 20 664.00 R 238 757.71 R 19 896.48 R 721.00 R 19 175.48
C.Brown R 38 936.17 R 29 723.00 R 2 229.23 R 494 727.81 R 129 685.01 R 23 130.00 R 106 555.01 R 8 879.58 R 902.00 R 7 977.58
G.Mangwane R 39 444.22 R 0.00 R 0.00 R 473 330.64 R 121 982.03 R 13 257.00 R 108 725.03 R 9 060.42 R 1 083.00 R 7 977.42
R.Collins R 12 760.45 R 0.00 R 0.00 R 153 125.40 R 27 562.57 R 13 257.00 R 14 305.57 R 1 192.13 R 270.00 R 922.13
S.Berndt R 11 394.00 - - R 136 728.00 R 34 182.00 - R 34 182.00 R 2 848.50 R 0.00 R 2 848.50
T.Breede R 12 385.00 - - R 148 620.00 R 37 155.00 - R 37 155.00 R 3 096.25 R 0.00 R 3 096.25

Totals R 193 166.84 R 84 215.00 R 6 316.13 R 2 395 900.95 R 639 523.08 R 83 565.00 R 555 958.08 R 43 329.84 R 3 516.00 R 42 813.84
(b)

Name of business: Whirler EMP 201

Return for: February 2016 "Extract"
Submission date: On or before 7 March 2016 For illustrative
purposes only
Payment Details
PAYE SDL UIF
R c R c R c
Amounts payable 4 R 42 813.84 5 R 1 931.67 6 R 1 656.51
R c
Control total (4 + 5 + 6 = 7) 7 R 46 402.02
QUESTION 2 SHORT THEORY QUESTIONS

PART A

1. J
2. K
3. I
4. B
5. H
6. D
7. A
8. F
9. E
10. C

PART B

1. Steps involved during the process of payroll verification:

1. Verification of all changes or corrections from the previous month.

2. Compilation of an error report that is sent to the input department.
3. Once information has been recorded, there must be verification of the input on the pay slips in
order to ensure that earnings and deductions codes are correct.
4. Indication of any corrections.
5. Submission of a final report for authorisation.

2. Two electronic payment facilities that users can select to make a payment through eFiling:

 The normal return payment facility: payment is set up for an outstanding amount reflected on a
submitted return immediately after online submission of the return.
 The ADHOC payment facility: this facility can be used to make a payment in respect of any
outstanding taxes, penalties and interest and does not require a return to be submitted with the
payment.

3. How leave pay is calculated for normal monthly paid employees:

 BCEA states that an employee’s salary should not be less when they are on leave.
 The employer must provide all the normal benefits while an employee is on leave.
 The employer must still continue making the normal employer contributions.

 All cash payments must be included in the remuneration except:

 Cash payments to ‘enable an employee to work’
 Relocation allowances
 Gratuities and gifts
 Discretionary payment not related to an employee’s hours of work
 Entertainment allowances
 Education or schooling allowances.

 If a payment fluctuates, it must be calculated over a period of 13 weeks or if the employee is

employed for a shorter period, for that period.
 4. Compressed working week:

 An agreement in writing may require or permit an employee to work up to twelve hours in a day,
inclusive of the meal intervals, without receiving any overtime pay.

 Such an agreement may not permit an employee to work:

 More than 45 ordinary hours of work in any week

 More than ten hours’ overtime in any week
 On more than five days in any week.

5. Points to ensure that performance reviews are successful:

 Keep focused on the results: Make sure you have a good understanding of the job and
knowledge of what has been achieved during the review period.
 Approach the review as an opportunity to motivate your staff, improve enthusiasm and gain
commitment: Listen to the employee and encourage employees to share success and failure,
joys and disappointments.
 Use it to build relationships and understanding: Allow as much participation as possible and
use the ideas of your team volunteers to effect performance improvement.
 Be positive: Remember that recognising, praising and rewarding positive outcomes generates
energy and vitality.
 Support the values of the company: Is there a sincere desire to empower staff, motivate them
and build mutual trust or not? If your company values include participation, honesty, openness and
transparency these values must be reflected in the reviews.

PART C

1. FALSE
2. FALSE
3. FALSE
4. TRUE
5. FALSE
6. TRUE
7. TRUE
8. FALSE
9. FALSE
10. TRUE
Section C: Choose 1 of 2 questions

QUESTION 1 VAT CALCULATIONS AND RETURNS & THEORY QUESTIONS

PART A

VAT INPUT
Description and calculation VAT amount

Purchases (R 40 620.33 x 14/114) - Purchases of inventory from a VAT vendor is a standard rated supply. R 4 988.46
Entertainment - (Although this may have been purchased from a VAT vendor and VAT paid, it may not be regarded as
0.00
VAT input because it is a non-allowable item)
Telephone expense (R 8 748.99 x 14/114) - This is a standard rated supply and will be deductible as VAT input if the
1 074.44
invoice is a tax invoice.
Charity donations (This is an exempt supply) 0.00
Property assessment rates (Property rates are a tax in themselves and therefore an exempt supply) 0.00
Amenities/services (R 861.15 x 14/114) - Amenities such as water, refuge and electricity are standard rated supplies
105.76
and therefore deductible if supplied by a registered VAT vendor
Petrol (zero-rated supply) 0.00
Stationery (for business use) (R 624.93 x 14/114) - Standard rated supply 76.75
Instalment payment (not a supply of goods or services) 0.00
Equipment (R 149 982.75 x 14/114) - Standard rated supply 18 418.93
Coffee Machine (Non-allowable item) 0.00
Electricity expense (R 2 499.71 x 14/114) - Standard rated supply 306.98
EMP201 (not a supply of goods or services) 0.00
Payment on account (not a supply of goods or services) 0.00
Cleaning Services (not a VAT vendor) 0.00
EFT-direct debit for Design work (R 43 744.97 x 14/114) - Standard rated supply 5 372.19
Debit order for security account (R 68 742.09 x 14/114) - Standard rated supply 8 442.01
Stop order for interest on government levies (Exempt) 0.00
Debit order for Passenger sedan vehicle (Non-allowable) 0.00
Credit Losses/Bad debts written off (R 323 587.78 x 14/114) - Standard rated supply 39 738.85
Credit notes issued (R 163.35 x 14/114) - Credit note on a standard rated supply 20.06

Total VAT input R 78 544.43

 VAT OUTPUT
Description and calculation VAT amount

Cash sales (R 1 187 363.44 x 14/114) - Standard rated supply R 145 816.56
Exports (Zero rated) 0.00
Credit sales (R 249 971.25 x 14/114) - Standard rated supply 30 698.22
Receipt from a debtor (not a supply of goods or services) 0.00
Interest on overdue debtors account (Exempt supply) 0.00
Service income (R 15 623.20 x 14/114) - Standard rated supply 1 918.64
Furniture (R 70 866.85 x 14/114) - Standard rated supply 8 702.95
Insurance payout on stock sold (R 97 238.82 x 14/114) - Standard rated supply 11 941.61

Total VAT output R 199 077.98

VAT input on VAT 201 VAT amount

Capital goods or services: Equipment R 18 418.93

Other goods or services (R 4 988.46 + R 1 074.44 + R 105.76 + R 76.75 + R 306.98 + R 5 372.19 + R 8 442.01) 20 366.59
Adjustments: Credit losses/Bad debts 39 738.85
Adjustments: Other - Credit notes issued 20.06

R 78 544.43

VAT output on VAT 201 Supplies VAT amount

Standard rated supplies excl. capital goods (R 1 187 363.44 + R 249 971.25 + R 15 623.20) R 1452 957.89 R 178 433.42
Standard rated supplies on capital goods 70 866.85 8 702.95
Adjustments: Other - Insurance payout on stock sold 97 238.82 11 941.61

R 199 077.98

Total VAT payable on VAT 201 (R 199 077.98 - R 78 544.43) R 120 533.55
PART B

1. Employer’s and employee’s duties:

Employer’s duties Employee’s duties

 To receive the worker into service and to
 To enter and remain in service
retain him or her
 To maintain reasonable efficiency  To the worker’s wages

 To further the employer’s business interests  To provide safe working conditions

 Not to expect the worker to do work
 To be respectful and obedient
inconsistent with his or her status
 To refrain from misconduct  To provide work for the worker

 Not to compete in his or her private capacity

with the business of his or her employer

2. Typical movements that will have an effect on the payroll:

 New employee appointment

 Transfer of employees
 Promotion of employees
 Termination of service

3. Aims of The Skills Development Act 97 of 1998:

 To develop the skills of the South-African workforce.
 To increase the levels of investment in education and training.
 To encourage employees to create an environment supportive of skills development.
 To encourage workers to participate in training programmes.
 To improve employment prospects for previously disadvantaged persons.
 Ensure the quality of workplace education and training.
 To assist the unemployed to find employment.
 To provide and regulate employment services.

4. Code of Ethics:
 It is also known as a code of conduct.
 It is a formal way in which an employer provides employees with a set of rules stating
exactly what the organisation expects of them with regard to their conduct while acting on
behalf of the organisation.
 It will inform employees on how management will implement ethical behaviour towards
employees and other stakeholders.
 It will provide guidelines on how management and employees are expected to behave.
QUESTION 2 PAYROLL ACCOUNTING & THEORY QUESTIONS

PART A

General ledger of Uxera

EMP201 control B7

Date Details Fol. Amount Date Details Fol. Amount

2015 2015
Jan. 31 Bank CBP1 52 120.24 Jan. 31 Salaries expense (UIF) SR1 783.86
Salaries expense (PAYE) SR1 48 883.90
UIF contributions SR1 783.86
SDL contributions SR1 1 668.62

52 120.24 52 120.24

Creditors for salaries B8

Date Details Fol. Amount Date Details Fol. Amount

2015 2015
Jan. 31 Bank CBP1 107 908.66 Jan. 31 Salaries expense SR1 107 908.66

Victoro Pension Fund B9

Date Details Fol. Amount Date Details Fol. Amount

2015 2015
Jan. 31 Bank CBP1 17 961.16 Jan. 31 Salaries expense SR1 8 980.58
Pension contributions SR1 8 980.58

17 961.16 17 961.16

Cronia Health B10

Date Details Fol. Amount Date Details Fol. Amount

2015 2015
Jan. 31 Bank CBP1 17 150.00 Jan. 31 Medical aid contributions SR1 17 150.00

Salaries expense N8

Date Details Fol. Amount Date Details Fol. Amount

2015
Jan. 31 Gross salaries SR1 166 557.00

Medical aid contributions N9

Date Details Fol. Amount Date Details Fol. Amount

2015
Jan. 31 Cronia Health SR1 17 150.00
 UIF contributions N10

Date Details Fol. Amount Date Details Fol. Amount

2015
Jan. 31 EMP201 control SR1 783.86

SDL contributions N11

Date Details Fol. Amount Date Details Fol. Amount

2015
Jan. 31 EMP201 control CBP1 1 668.62

Pension contributions N12

Date Details Fol. Amount Date Details Fol. Amount

2015
Jan. 31 Victoro Pension Fund SR1 8 980.58

PART B

1. Employer’s and employee’s duties:

Employer’s duties Employee’s duties

 To receive the worker into service and to
 To enter and remain in service
retain him or her
 To maintain reasonable efficiency  To the worker’s wages

 To further the employer’s business interests  To provide safe working conditions

 Not to expect the worker to do work
 To be respectful and obedient
inconsistent with his or her status

 To refrain from misconduct  To provide work for the worker

 Not to compete in his or her private capacity

with the business of his or her employer

2. Typical movements that will have an effect on the payroll:

 New employee appointment

 Transfer of employees
 Promotion of employees
 Termination of service
3. Aims of The Skills Development Act 97 of 1998:
 To develop the skills of the South-African workforce.
 To increase the levels of investment in education and training.
 To encourage employees to create an environment supportive of skills development.
 To encourage workers to participate in training programmes.
 To improve employment prospects for previously disadvantaged persons.
 Ensure the quality of workplace education and training.
 To assist the unemployed to find employment.
 To provide and regulate employment services.

4. Code of Ethics:
 It is also known as a code of conduct.
 It is a formal way in which an employer provides employees with a set of rules stating
exactly what the organisation expects of them with regard to their conduct while acting on
behalf of the organisation.
 It will inform employees on how management will implement ethical behaviour towards
employees and other stakeholders.
 It will provide guidelines on how management and employees are expected to behave.

SECTION A: 40 MARKS
SECTION B: 95 MARKS
SECTION C: 45 MARKS
TOTAL : 180 MARKS