Valiant Sportswear runs a small factory. The following information relates to four employees for a typical week. LO2 Hours worked Name Basic Overtime Number of items produced J Oldridge 36 3,400 K Bullard 40 10 5,400 H Downing 40 7

5,600 L Beech 40 8

4,900 Valiant Sportswear pays a basic rate of £6.45 per hour with an overtime rate of time and a third. They are offering to pay piece rates of £6.00 per 100 items produced.

You are required to:

(a) Calculate the gross pay for each employee at time rates and at piece rates.

(b) Indicate which would be most favourable to each one.

(c) When calculating net pay, statutory and voluntary deductions may be made from gross pay. State which of the following are statutory deductions and which are voluntary deductions:

Income Tax Contributions to a firm’s social club Trade Union contributions National Insurance contributions.