# 2016 Assessment 2 - Task 4 part c and d

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c)
Firstly the splits of the labour costs between standard working hours and over time:

March- £426,666 Standard Hours due in March (64,000 / 15 * 100)
£180,000 Overtime Hours due in April

April - £455,000 Standard hours due to be paid in April
£195,000 Overtime Hours due to be paid in May

May- £476,000 Standard hours due to be paid In May
£204,000 Overtime due to be paid in June

June- £462,000 Standard hours due to be paid In June
£198,000 Overtime hours due to be paid in July

July- £490,000 Standard hours due to be paid in July
£210,000 Overtime Hours due to be paid In August

Then the NIC Payment, based on the splits above, the NIC payments are due the month following the period in which the original labour costs were incurred. Therefore the proportion of standard hours will be payable + 1 month to which they were worked and overtime will be payable + 2 months to which they were incurred (as the overtime is paid the following month).

March- £64,000 (outstanding amount in March) payable in April
£27,000 15% Overtime Hours payable in May

Apr- £45,500 10% Standard hours payable In May
£29,250 15% Overtime hours payable In June

May- £47,600 10% Standard hours payable In June
£30,600 15% Overtime hours payable In July

June- £46,200 10% Standard hours payable In July
£29,700 15% Overtime hours payable In August
£47,250 15% of bonus payable in July

July- £49,000 10% Standard hours payable In August
£31,500 15% Overtime hours payable In September

Therefore:

April = 180,000 + 455,000 + 64,000 = £699,000
May = 195,000 + 476,000 + 27,000 + 45,500 = £743,500
June = 204,000 + 462,000 + 29,250 + 47,600 + 315,000 = 1,057,850
July = 198,000 + 490,000 + 30,600 + 46,200 + 47250 = 815050

I Hope this helps.