CIMA Exam CIMAPRA19-F01-1 Topic 5 Question 100 Discussion

Actual exam question for CIMA's CIMAPRA19-F01-1 exam

Question #: 100
Topic #: 5

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.

AThe employee will be able to deal with tax authority directly to make payments.

BThe employee will avoid being charged penalties for paying late.

CThe employee will calculate their own tax payment.

DThe employee does not have to complete a self assessment tax return.

EThe employee does not have to budget for their tax payments because the tax is deducted at source.

Show Suggested Answer

Suggested Answer: B, D, E

by Launa at Sep 15, 2024, 12:22 PM

Limited Time Offer

25%

Off

Get Premium CIMAPRA19-F01-1 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Malinda

2 months ago

Ha, the employee doesn't have to 'deal with the tax authority directly'? What, are they going to send the tax collector to your house for a friendly chat? I'm all for B, D, and E!

upvoted 0 times

...

Jenise

2 months ago

I'd go with B, D, and E. The employee doesn't have to worry about a thing, it's all taken care of. Although, I'd be careful not to spend that tax money before it's deducted, you know?

upvoted 0 times

Lanie

29 days ago

That's true, it definitely makes things easier for the employee. It's like set it and forget it.

upvoted 0 times

...

Vi

1 months ago

E) The employee does not have to budget for their tax payments because the tax is deducted at source.

upvoted 0 times

...

Josphine

1 months ago

D) The employee does not have to complete a self assessment tax return.

upvoted 0 times

...

Maurine

2 months ago

E) The employee does not have to budget for their tax payments because the tax is deducted at source.

upvoted 0 times

...

Wilda

2 months ago

B) The employee will avoid being charged penalties for paying late.

upvoted 0 times

...

Maurine

2 months ago

D) The employee does not have to complete a self assessment tax return.

upvoted 0 times

...

Maurine

2 months ago

B) The employee will avoid being charged penalties for paying late.

upvoted 0 times

...

Arleen

3 months ago

Definitely B, D, and E. Avoiding penalties and not having to do a self-assessment return? Sign me up! Oh, and not having to budget for taxes? That's just pure convenience.

upvoted 0 times

Kanisha

2 months ago

I think the convenience of having taxes deducted at source is a game-changer.

upvoted 0 times

...

Laticia

2 months ago

It's great not having to worry about budgeting for taxes every month.

upvoted 0 times

...

Lindsey

2 months ago

Not having to do a self-assessment return is definitely a time-saver.

upvoted 0 times

...

Rebbecca

2 months ago

I agree, avoiding penalties is a huge advantage.

upvoted 0 times

...

Tomoko

3 months ago

I also think option B is important. Avoiding penalties for late payments is a big advantage for employees using a PAYE system.

upvoted 0 times

...

Thersa

3 months ago

I agree with Nakisha. Option E makes it easier for employees to manage their finances without worrying about setting aside money for taxes.

upvoted 0 times

...

Nakisha

3 months ago

I think option E is an advantage because it saves employees the hassle of budgeting for tax payments.

upvoted 0 times

...

Vannessa

3 months ago

I think options B, D, and E are the obvious advantages for employees. I mean, who wants to deal with the tax authority directly or calculate their own taxes? No, thanks!

upvoted 0 times

Valentin

2 months ago

User 2

upvoted 0 times

...

Tegan

3 months ago

User 1

upvoted 0 times

...