Payroll & Monthly

SARS Returns
(PMSR)

ICB ASSIGNMENT 3

QUESTION PAPER

Apr 2023 to Mar 2024

THIS PAPER CONSISTS OF 1 ASSIGNMENT

ASSIGNMENT 3: 5 QUESTIONS

INSTRUCTIONS:

1. ICB Assignments form part of the formative mark and are to be completed in an open book environment.
2. This Question Paper Book contains all the questions for Assignment 3.
3. All questions are to be completed in the Assignment Answer Book.
4. Check that you have the correct number of pages.
5. Please be neat, as illegible handwriting cannot be marked. You must write in blue or black ink. In practice it is
unacceptable for Bookkeepers to use correcting fluid (Tipp-ex). Marks will be deducted for the use of correction fluid.
6. All questions must be completed.
7. This question paper must NOT be returned to the ICB. You must retain this Assignment Question Paper Book.
8. Upon completion of your Assignment, remember to submit (upload) this Assignment Answer Book into MACCI.

PMSR-ICBASG3–QP-2023 Page 1 of 11
 PAYROLL & MONTHLY SARS RETURNS (PMSR)
ICB ASSIGNMENT 3 QUESTION PAPER – APR 2023 TO MAR 2024

ASSIGNMENT 3

QUESTION 1 THEORY QUESTIONS

PART A

The following information relates to the work within the payroll environment (plan, organise, implement &
monitor), verification of employee records, basic conditions of employment, statutory registrations, Efiling and
Ethics:

COLUMN A COLUMN B

1. Supply of exported services A Estimation basis

2. Supply of life assurance B Non-allowable item
3. Input VAT on recreational club fees C SDL
4. Input VAT on professional subscriptions D Retirement contributions
One day for every 26 days worked during the first six months of
5. Accounting methods for VAT include invoice basis and … E
employment
Payable by an employer at a rate of 1% where payroll
6. F Zero-rated
exceeds R 500 000 per annum
7. Capped at R 17 712 per month G An employee who works continuously for more than 5 hours
The Compensation Fund pays the following benefit in terms
8. H Responsible for the management of training within a company
of the COID Act
The result of decisions taken in the past which cannot be changed at
9. Determines the tax threshold for individuals I
present
10. Deductible for taxable remuneration purposes J Allowable item
11. Maternity leave K UIF remuneration
12. SAQA L Compensation for Occupational Injuries and Diseases
13. Eligible for a meal interval of at least one continuous hour M Exempt
14. Night work N South African Qualifications Authority
15. Sick leave O Employee entitled to four consecutive month’s leave
16. COID P Payments basis
17. Sunk costs Q The Unemployment Insurance Act
18. Labour statute R Death benefits to the next of kin of the deceased
19. Basic Conditions of Employment Act S Takes responsibility for the management of training within the company
20. SDF T Tax rebates
U South African Quality Association
V Workers are able to work fewer hours for the same amount of money
X Centre for Occupations Internships and Development

Required:

Match the items listed in COLUMN B with those listed in COLUMN A. Write down only the letter of your choice
next to the corresponding number. For example: 1. J
2. B, etc.

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 PAYROLL & MONTHLY SARS RETURNS (PMSR)
ICB ASSIGNMENT 3 QUESTION PAPER – APR 2023 TO MAR 2024

PART B

1. (a) Give three reasons why employees’ records need to be kept confidential.
(b) List four security measures that have been put in place to ensure that all records are kept safe.

2. List four elements of an employment contract.

3. Name and briefly explain the two electronic payment facilities that are available when making a payment to
SARS via eFiling.

4. What is the general remuneration rule for working on a Sunday?

5. Explain the difference between morals and ethics.

6. Explain the difference between compulsory and voluntary VAT registration and the requirements of each?

7. List the two main allowable deductions in determining taxable remuneration for a salaried employee for
PAYE purposes as well as the section or limitation that applies to this deduction.

8. List any four aims of the Skills Development Act

9. List any four UIF benefits

10. List 4 circumstances where a person providing tax advice or completing tax returns is not required to
register as a tax practitioner

PART C

1. Which of the following is a controllable cost?

A Being late for work

B Rates to the local government
C Sunk costs
D All of the above

2. Which of the following duties and rights sit with the Employer?

A Maintain reasonable efficiency

B Respectful and obedient
C Safe working conditions
D To compete with the business’s interests

3. Which of the following is NOT a Group incentive scheme?

A Profit sharing
B Commission plans
C Skill based pay
D ESOP’s

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 PAYROLL & MONTHLY SARS RETURNS (PMSR)
ICB ASSIGNMENT 3 QUESTION PAPER – APR 2023 TO MAR 2024

4. Which of the below form part of the four basic types of internal control?

A Preventative
B Detective
C Directive
D All of the above

5. The following is a Recognised Controlling Body for Tax Practitioner purposes

A SARS
B UIF
C SAIT
D The Government

6. Which of the following professional bodies exist for accountants and auditors in South Africa?

A CIMA
B SAICA
C ICB
D All of the above

7. A professional code of conduct includes:

A being impartial and objective

B being open and providing full disclosure
C demonstrating due diligence
D All of the above

8. Which of the below is not a benefit provided by UIF?

A Illness benefit
B Dependent benefit
C Housing benefit
D Adoption benefit

9. If completing a tax return on you own behalf, you would register as the following on e-filing…

A an individual.
B an organisation.
C a tax practitioner.
D None of the above

10. Which of the following statements is true?

A A tax practitioner is required to register with a recognised controlling body or SARS

B Tax evasion is legal
C Tax avoidance is illegal
D Failing to register as a tax practitioner when required to do so is a criminal offense

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 PAYROLL & MONTHLY SARS RETURNS (PMSR)
ICB ASSIGNMENTS 1&2&3 QUESTION PAPER – APR 2023 TO MAR 2024

QUESTION 2 PAYROLL CALCULATIONS & RETURNS

You have been provided with the following information for Highlight for the month of December 2022.

Taxable
Taxable Taxable
value Taxable Pension
Travel portion of value of PAYE/SDL UIF PAYE
December 2022 Age Salary Commission of value of fund
allowance travel pension remuneration remuneration deduction
company medical aid deduction
allowance fund
car

Z. Mathini 42 R 9 483.00 R 1 920.00 R 3 185.00 ? R 0.00 ? ? ? ? ? ?

C. Nel 65 R 64 185.00 R 0.00 R 0.00 R 0.00 ? ? ? ? ? ? ?
M. Mafu 72 R 41 240.00 R 0.00 R 0.00 R 0.00 R 0.00 ? ? ? ? ? ?
S. Thomas 35 R 38 975.00 R 5 880.00 R 2 789.00 ? R 0.00 ? ? ? ? ? ?
A Barnard 24 R 16 634.00 R 3 240.00 R 1 750.00 ? R 0.00 ? ? ? ? ? ?
F. Louw 27 R 10 745.00 n/a n/a n/a n/a n/a n/a ? ? ? ?
G. Welthagen 19 R 9 880.00 n/a n/a n/a n/a n/a n/a ? ? ? ?

Totals R 191 142.00 R 11 040.00 R 7 724.00 ? ? ? ? ? ? ? ?

Additional information:

The following tax sliding scale for individuals applied for the tax year ending 28 February 2023:
Taxable income Rates of Tax
R 0 to R 226 000 18 % of each R1
R 226 001 – R 353 100 R 40 680 + 26 % of the amount above R 226 000
R 353 101 – R 488 700 R 73 726 + 31 % of the amount above R 353 100
R 488 701 – R 641 400 R 115 762 + 36 % of the amount above R 488 700
R 641 401 – R 817 600 R 170 734 + 39 % of the amount above R 641 400
R 817 601 – R 1 731 600 R 239 452 + 41 % of the amount above R 817 600
R 1 731 601 + R 614 192 + 45 % of the amount above R 1 731 600

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 PAYROLL & MONTHLY SARS RETURNS (PMSR)
ICB ASSIGNMENT 3 QUESTION PAPER – APR 2023 TO MAR 2024

i. Both Z. Mathini and M.Mafu receive a guaranteed 13th cheque. The business ‘smooths’ the tax on the
bonus throughout the year and the bonus is paid in February 2023
ii. C. Nel has the full use of a company car. This car had cost the business R 192 800 (including VAT) when it
was bought and allocated to him last year, there is no maintenance plan on this car. The value of the
monthly taxable fringe benefit for the use of a company car is 3.50% of the cost of the vehicle (including
VAT). 80 % of this monthly taxable fringe benefit is included in remuneration for the purposes of
determining PAYE payable.
iii. Permanent employees contribute 8 % of their basic salary to a Pension Fund (13th cheques are also
pensionable). Highlight contributes to the pension fund on a rand-for-rand basis.
iv. F. Louw and G.Welthagen are part time employees that worked for 28 and 18 hours for the month
respectively.
v. There are no independent contractors or employees on registered learnerships.
vi. Only 80 % of the travel allowance is taxable
vii. Assume a maximum UIF funding salary of R 17 712.00
viii. All permanent employees belong to HG Medical, a registered medical scheme and have all provided
adequate proof of membership to their employer. The company pays the whole contribution to the medical
aid. The following tax rebates apply to medical fund contributions:
• R 347.00 for the sole member.
• R 347.00 for the first additional dependant.
• An additional R 234.00 is allowed as a rebate for each additional dependant other than the first
dependant.

ix. The staff members have the following number of dependants and medical aid contributions:

No. of Total monthly contribution paid

Employee
dependants to medical aid

Z. Mathini 0 R 1 886.00
C. Nel 3 R 4 796.00
M. Mafu 1 R 2 645.00
S. Thomas 4 R 3 841.00
A Barnard 2 R 2 150.00

x. The rebates allowed in the South African tax system are as follows for the 2022 / 2023 tax year:
• Primary rebate R 16 425.00
• Secondary rebate (65 years and older) R 9 000.00
• Tertiary rebate (75 years and older) R 2 997.00

Required:

2.1. Complete the table provided in your answer book. Make use of the sliding scale schedule.
2.2. Complete the abbreviated EMP201 in your answer book.

Note: Show all your calculations

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 PAYROLL & MONTHLY SARS RETURNS (PMSR)
ICB ASSIGNMENT 3 QUESTION PAPER – APR 2023 TO MAR 2024

QUESTION 3 VAT CALCULATIONS & RETURNS

Breeze (Pty) Ltd is a registered VAT vendor and accounts for VAT on the invoice basis. You have been supplied
with the following information for the September/October 2022 VAT period. Assume a standard VAT rate of 15 %.

All amounts include VAT unless VAT is not applicable. Transactions with non-vendors are indicated with an
asterisk (*). Assume that all vendors have submitted valid source documents in accordance with the VAT Act
(where applicable).

Sep/Oct invoices received:

Invoice Date Particulars Allocation Amount

1/09/22 Axle supplies Trading inventory R 86 326.46

2/09/22 The Catering Company Office refreshments 3 742.22
7/09/22 CellU Telephone 4 875.48
Property assessment rates 1 849.62
12/09/22 The Western Municipality
Amenities/services 974.32
15/09/22 Max Garage Petrol 3 250.00
19/09/22 Sparkle Stationers Business cards 2 894.60
25//09/22 The Traffic department Vehicle over-loading fine 1 750.00
01/10/22 Clever Computers Office computer 24 986.50
05/10/22 Fridgeland Staff room fridge 8 742.68
10/10/22 Quick Couriers Courier fees 1 052.44
31/10/22 B. Rex Maintenance services* 846.22

Additional Sep/Oct debits on the bank statement:

• Debit order for Sep/Oct short-term insurance, R 1 569.45

• Bank fees, R 658.76
• Interest on overdraft, R 135.00.
• Animal welfare donation of R 500.00
• Settlement of creditor invoice dated 25 Aug 2021, R 10 845.60
• SARS VAT payment, R 3 185.50

Sep/Oct credits on the bank statement:

• Receipt no’s 8745 to 9143 for cash sales, R 987 624.33

• Received R 10 124.88 from E Finnegan in settlement of his outstanding invoice dated 30 June 2022 (no
discount given)

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 PAYROLL & MONTHLY SARS RETURNS (PMSR)
ICB ASSIGNMENT 3 QUESTION PAPER – APR 2023 TO MAR 2024

Receipts not included above:

• On 4 October 2022, an amount of R 185 625.44, was transferred from Argentina for goods, which were
exported there and invoiced on 1 October 2021
• On 8 October 2022, an original cash invoice was issued for consulting income of R 15 678.24.
• On 13 October 2022, office computers were sold for cash of R 18 426.33.
• On 29 October 2022, the business received an insurance pay-out on stock damaged in an accident,
R 106 425.33

Other Sep/Oct transactions

• Credit losses written off on Standard-rated supplies, R 4 326.55

• Credit notes issued (on standard-rated goods previously sold), R 3 024.12
• On 31 October 2022 a journal entry was processed for interest of R 2 156.55 on the overdue account of a
debtor.
• On 17 September 2022 Marsh Ltd purchased goods on credit from Breeze (Pty) Ltd for R 58 625.34. The
amount was still outstanding on 31 October 2022.

Required:

3.1. Calculate the total input and output VAT which Breeze (Pty) Ltd can claim or account for on the above-
mentioned transactions for September/October 2022. In your answer, please indicate the VAT implication
of each line item, even if the particular answer in R nil.
3.2. Complete the VAT return for remittance provided in your answer book.

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 PAYROLL & MONTHLY SARS RETURNS (PMSR)
ICB ASSIGNMENT 3 QUESTION PAPER – APR 2023 TO MAR 2024

QUESTION 4 PAYROLL ACCOUNTING

The following information relates to the salaried employees of Tuope Trading CC for the month of December
2022. Assume a maximum UIF funding salary of R 17 712,00. Ignore voluntary deductions. Assume that all
payroll creditors were paid in full by EFT on 31 December 2022.

Salaries register of Tuope Trading CC - December 2022 SR 12

Deductions Employers contributions

Employee no. & Gross
Net salary
name salary
Pension Pension
Total/ Medical aid
UIF PAYE fund fund UIF SDL
balance contribution
contribution contribution

(178) T.Olea 9 543.00 177.12 2 188.27 668.01 3 033.40 6 509.60 2 386.00 668.01 177.12 203.81
(179) B.Pandor 65 609.00 177.12 19 222.01 3 674.09 23 073.22 42 535.78 6 298.00 3674.09 177.12 656.09
(180) C.Nthini 36 215.00 177.12 7 024.41 2 004.03 9 205.56 27 009.44 4 008.00 2004.03 177.12 373.60
(181) W.Buekes 43 588.00 177.12 9 653.96 2 338.07 12 169.15 31 418.85 5 010.00 2338.07 177.12 450.58
(182) A.Arendsa 11 908.00 129.50 77.92 768.25 975.67 10 932.33 1 207.00 768.25 129.50 123.47
(183) F.Afrika 10 975.00 n/a 2 743.75 - 2 743.75 8 231.25 - - n/a 109.75
(184) M.Moseby 11 929.00 119.29 2 982.25 - 3 101.54 8 827.46 - - 119.29 119.29

189 767.00 957.27 43 892.57 9 452.45 54 302.29 135 464.71 18 909.00 9 452.45 957.27 2 036.59

Required:

Open, post to and balance the following accounts in the general ledger of Tuope Trading CC:

• EMP201 control (B7)

• Creditors for salaries (B8)
• Queens Pension Fund (B9)
• Kings Medical Aid (B10)
• Salaries expense (N8)
• Medical aid contributions (N9)
• UIF contributions (N10)
• SDL contributions (N11)
• Pension contributions (N12)

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 PAYROLL & MONTHLY SARS RETURNS (PMSR)
ICB ASSIGNMENT 3 QUESTION PAPER – APR 2023 TO MAR 2024

QUESTION 5 COMPUTERISED PAYROLL

PART A

The following information relates to the computerised payroll system:

COLUMN A COLUMN B

1. Average Tax method A Tax is calculated at 25%

2. Annual leave entitlement B Calculates tax by annualising the earnings

3. ETI C Do not use BCEA for leave taken

4. Moving payroll into the next period D Retirement Fund Income

On setup, this is selected if the employee is between 18 – 29 years old and
5. Periodic tabs E
salary is below the ETI threshold.
6. Employee Master files > Rate details F Used to select the type of payslip format for printing

7. What type of income does a pension fund get calculated on? G Process > Pay period update

8. Part-time Tax method H Fields are mostly system generated once first payslip has been setup

9. Setup > Transactions > Processing rule I Income, deductions and Benefits

10. Payment tab > Paper Style J To be entered as 15 working days

Required:

Match the items listed in COLUMN B with those listed in COLUMN A. Write down only the letter of your choice
next to the corresponding number. For example: 1. J
2. B, etc.

PART B

1. Pastel payroll has set aside codes that the payroll administrator can use. Complete the table in your
answer book by correctly identifying the payroll transaction codes or Transaction types.

2. In the table below calculate which income of Mr Ndlovu is RFI (Retirement Fund Income) and which is
NRFI (Non-Retirement Fund Income). The Employee’s pension fund contribution is 7.5% on Salary and
commission.

RFI NRFI
Basic Salary R32,000.00
Travel Allowance R6,000.00
Annual Bonus R25,000.00
Commission R8,000.00
Overtime @ 1.5 R6 752.67
TOTAL

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 PAYROLL & MONTHLY SARS RETURNS (PMSR)
ICB ASSIGNMENT 3 QUESTION PAPER – APR 2023 TO MAR 2024

3. When setting up the BCEA leave periods, there are two groupings to make use. These are dependent on
how often an employee gets paid. Briefly explain the leave period and match this to the terms of payment.
Complete the table in your answer book.

4. There are various Tax methods that can be selected when setting up Employee profiles. Which method is
recommended?

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