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payroll -SP

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AA Exams › payroll -SP

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by AvatarKim Smith.
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  • July 29, 2021 at 6:11 am #629728
    AvatarNoah098
    Member
    • Topics: 935
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    • ☆☆☆☆☆

    Calculate statutory deductions as a percentage of gross pay and compare to the prior year to assess the reasonableness of the statutory deductions. Investigate any significant variances.

    maam can you help me understand how this process makes sense? I mean if wages this yr are higher due to more no.of employees being recruited then of course the statutory deductions will be more this yr compared to last year, so then how is it even a valid substantive procedure?

    July 29, 2021 at 7:16 am #629743
    AvatarKim Smith
    Keymaster
    • Topics: 138
    • Replies: 8468
    • ☆☆☆☆☆

    That’s why it says PERCENTAGE – so if national insurance/social security contributions are 13.2% of gross pay this year is that reasonable if last year this was 13.6?

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