Remuneration GCSE Business and Communication Systems 1 Business and Communication Systems

Students should be able to:  Explain the difference between a wage and a salary;  Identify and explain the contents of a payslip (gross pay, income tax, National Insurance and Net Pay); and  Describe the impact that technology has had on the processing of wages and salaries. Business and Communication Systems

 Someone who is paid wages receives a pay rate per hour, multiplied by the number of hours worked. A person who receives wages is also entitled to overtime pay of 1.5x their normal rate of pay if they work more than 40 hours per week.  A salary is a fixed regular payment, typically paid on a monthly basis over a full year summing to the amount of the salary. The person receiving a salary is not paid a smaller amount for working fewer hours nor are they paid more for working overtime. Difference between a wage and a salary Business and Communication Systems

Identify and explain the contents of a payslip  Name – so that the named individual receives his/her payslip  Employee number – a unique number to identify the individual  National insurance number – for query purposes  Pay date – date paid into employee’s account  Pay period – to identify the weekly / monthly period that the pay relates to in case of a pay query by the employee  Details of pay – that the employee is in receipt of pay for the correct responsibilities that they hold and the hours worked or rate of pay  PAYE tax code and amount of tax paid – showing the amount paid in tax and to check that the tax code is correct Business and Communication Systems

Cont.  Gross pay – to check that the employee is paid the correct amount before tax is deducted  Net pay – the employee can check with their bank statement that the correct amount of pay has been deposited into their account  Bank account number – to permit the business / organisation with the bank account to pay the wage / salary into and that the payment is made to the correct account  Superannuation – shows the amount that the employee sets aside during their working life for use as retirement income Business and Communication Systems

Describe the impact that technology has had on the processing of wages and salaries  BACS is actually the central payment system used to process wages and salaries for organisations / businesses.  BACS – Bankers Automated Clearing System OR Banks Automated Clearing Systems. It is a simple and cost effective way to make payments directly from your bank account to another bank account. It is the most popular way for suppliers and employees to be paid. Business and Communication Systems

Benefits to the employee  It gives the employee cleared funds guaranteed to be available on pay day. No risk of postal delay. No need to wait for cheques to be cleared through the banking system.  If the employee opens a bank or building society account in order to receive their pay directly, she may find it easier to budget for savings and expenses.  There is no threat to the employee from payroll robbery, or the loss or theft of wage packets.  There is no need for the employee to collect or pay in wages or salaries. Their money is automatically credited to their account on known dates, even when they are sick, on holiday or on shift work outside normal hours. Business and Communication Systems