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CIMAPRA19-F01-1 Exam - Topic 6 Question 115 Discussion

DEF is considering introducing a Pay-As-You-Earn (PAYE) system but unsure of the advantages of using it.Which of the following statements are advantages from the employees perspective of an entity using a PAYE system for collecting taxes from employees.Select ALL that apply.
B) The employee will avoid being charged penalties for paying late. and D) The employee does not have to complete a self assessment tax return. and E) The employee does not have to budget for their tax payments because the tax is deducted at source.
A) The employee will be able to deal with tax authority directly to make payments.
C) The employee will calculate their own tax payment.

CIMAPRA19-F01-1 Exam - Topic 6 Question 115 Discussion

Actual exam question for CIMA's CIMAPRA19-F01-1 exam
Question #: 115
Topic #: 6
[All CIMAPRA19-F01-1 Questions]

DEF is considering introducing a Pay-As-You-Earn (PAYE) system but unsure of the advantages of using it.

Which of the following statements are advantages from the employees perspective of an entity using a PAYE system for collecting taxes from employees.

Select ALL that apply.

Show Suggested Answer Hide Answer
Suggested Answer: B, D, E

Contribute your Thoughts:

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Micaela
7 months ago
Totally agree with B, no late penalties is a win!
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Robt
7 months ago
Wait, can employees really deal with tax authority directly?
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Stanford
8 months ago
C seems off, why would they calculate their own tax?
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Hui
8 months ago
I think E is a big plus too!
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Julieta
8 months ago
B and D are definitely advantages!
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Sabra
8 months ago
A seems off to me; I don't think employees deal directly with tax authorities under PAYE.
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Jerilyn
8 months ago
I practiced a similar question, and I feel like E is definitely an advantage since tax is deducted at source.
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Annice
9 months ago
I'm not entirely sure, but I think D makes sense since employees wouldn't need to do a self-assessment with PAYE.
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Fannie
9 months ago
I remember that one of the advantages is avoiding late payment penalties, so I think B could be correct.
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Jamey
9 months ago
Okay, I think I understand the PAYE system and how it works. I'll select the options that clearly describe advantages for the employees.
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Izetta
9 months ago
The options cover a range of potential benefits, I'll need to evaluate each one to determine which ones are truly advantages from the employee's perspective.
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Elke
9 months ago
Hmm, I'm a bit unsure about this one. I'll need to think through the PAYE system and how it impacts employees to make sure I choose the right advantages.
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Rozella
9 months ago
This question seems straightforward, I'll go through the options carefully and select the ones that are clear advantages for employees.
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Leslee
10 months ago
I disagree with option A, I don't see how dealing with tax authority directly is an advantage for employees.
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Amber
10 months ago
D and E are the way to go. The employee doesn't have to do anything except show up and get paid. It's like tax magic!
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Daniel
10 months ago
I'd go with B, D, and E. Anything that makes tax time less of a headache is a win in my book. Though I do enjoy a good calculator workout, so C is tempting too.
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Marlon
10 months ago
I also think option B is an advantage, as you won't get charged penalties for late payments.
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Laticia
11 months ago
I agree with Andree, option E is definitely a benefit of using a PAYE system.
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Miesha
11 months ago
B, D, and E are the best options in my opinion. Avoiding penalties and not having to worry about budgeting or filing a tax return? Sign me up!
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Willow
10 months ago
B, D, and E are definitely the best options. Who wants to deal with penalties and extra paperwork?
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Andree
11 months ago
I think option E is an advantage because you don't have to worry about budgeting for tax payments.
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Fernanda
12 months ago
I think D and E are the clear advantages here. Who wants to deal with the tax authority directly or calculate their own tax payment? That's just asking for trouble!
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Tammy
10 months ago
I think A could also be seen as an advantage, some people might prefer dealing with the tax authority directly.
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Dominic
11 months ago
I agree, D and E are definitely the main advantages. It's much easier when the tax is deducted at source.
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