Payroll Basic ?
Clue: This is the total salary an employee earns before deductions.
What is Gross Pay?
Name one statutory deduction in Jamaica.
NIS, NHT, Education Tax or Income Tax
What is deducted from an employee’s salary to contribute to housing benefits?
a) NIS
b) NHT
c) Income Tax
b) NHT)
True/ False - PAYE is an optional deduction that employees can choose to pay or not.
False
A payroll register is a record of employee earnings and deductions.
True
What is the total salary before deductions called?
Gross Pay
What percentage of an employee’s salary is deducted for NIS?
3%
What is the amount an employee takes home after deductions called?
Net Pay
How often is a biweekly salary paid?
a) Once a week
b) Twice a month
c) Every two weeks
Every two weeks)
True/False - Self-employed individuals do not need to pay NIS.
False – They must contribute to NIS but remit it themselves
What does PAYE stand for?
Pay As You Earn
Who is responsible for remitting statutory deductions in a company?
a) The employee
b) The employer
c) The supplier
b) The employer
If an employee earns $50,000 per month and pays 5% towards pension, how much is deducted for pension
$2,500
Clue: This payroll schedule pays employees once a month.
What is a Monthly Pay Cycle?
What does NIS provide to employees?
a) Tax Exemptions
b) Pension & Social Security Benefits
c) Higher salaries
b) Pension & Social Security Benefits
Clue: The document issued to employees showing their salary breakdown, deductions, and take-home pay.
What is a Payslip?
What happens if an employer fails to submit statutory deductions?
a) No consequence
b) Fines and penalties
c) Employees receive higher salaries
b) Fines and penalties
Which of the following is NOT a statutory deduction in Jamaica?
a) PAYE
b) Lunch Allowance
c) NIS
b) Lunch Allowance
Clue: A payroll system where employees are paid twice a month, often on the 1st and 15th.
What is a Semi-Monthly Pay Cycle?
Clue: Employees who work beyond their regular hours may receive this additional payment.
What is Overtime Pay?
Clue: This statutory deduction helps provide housing benefits to employees.
What is NHT?
Clue: The portion of salary deducted for an employee’s retirement savings.
What is a Pension Contribution?
What is the percentage of Education Tax paid by employees?
a) 2.25%
b) 5%
c) 3%
a) 2.25%
Clue: The employer's record that tracks earnings, deductions, and payments for each employee
What is a Payroll Register?
Clue: The portion of salary deducted for an employee’s retirement savings.
What is a Pension Contribution?