Junior Cycle Business Studies Understanding Pay: Conor Kavanagh is employed as a

Question

Conor Kavanagh is employed as a manager at Bonbon Ltd. His normal working week is 35 hours but occasionally he works overtime. His basic wage rate is €770 for a 35-hour week. Overtime is paid at time and a half for the first five hours and double time for hours in excess of that. In Week No. 5 he worked 42 hours.

Conor pays PAYE at the rate of 40% and PRSI/USC at 10.5%. His annual tax credit is €3,380. He pays €40 for health insurance and invests €75 in a savings fund. His employer deducts both of these at source.

(i) Explain the difference between ‘basic pay’ and ‘overtime’.

(ii) Complete Conor's Wage Slip for Week No. 5 using the blank document on page 12 of Section A. Show your workings (on the same page).

(iii) Using Conor’s Wage Slip, identify his Statutory Deductions.

(B) As Conor will be employed at Bonbon Ltd for five years at the end of 2017 he will be able to negotiate his own benefit in kind.

(i) Explain the term ‘benefit in kind’ and give two examples.

(ii) State two rights Conor has as an employee of Bonbon Ltd.

Conor Kavanagh is employed as a manager at Bonbon Ltd - Junior Cycle Business Studies - Question 6 - 2017

Worked Solution & Example Answer:Conor Kavanagh is employed as a manager at Bonbon Ltd - Junior Cycle Business Studies - Question 6 - 2017

Explain the difference between ‘basic pay’ and ‘overtime’.

Complete Conor's Wage Slip for Week No. 5.

Using Conor’s Wage Slip, identify his Statutory Deductions.

Explain the term ‘benefit in kind’ and give two examples.

State two rights Conor has as an employee of Bonbon Ltd.

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