Final answer:
To find the employees' gross wages before deductions, we add the net wages to the PAYE, and both the employees' and employer's National Insurance contributions. The calculation results in a total of £17,780, which is option D.
Step-by-step explanation:
To determine the employees' gross wages before deductions, we need to add back the deductions that were withheld from their net wages, which include the PAYE (Pay As You Earn) tax, and both the employees' and the employer's National Insurance contributions. The business paid out £12,450 in net wages, the PAYE payable was £2,480, the employees' National Insurance contribution was £1,350, and the employer's National Insurance contribution was £1,500.Using this information, we can calculate the gross wages as follows:Gross Wages = Net Wages + PAYE + Employees' NI + Employers' NI.Gross Wages = £12,450 + £2,480 + £1,350 + £1,500.Gross Wages = £17,780Therefore, the correct answer is D £17,780, which represents the employees' gross wages before any deductions.In this question, we are given that a business paid out £12,450 in net wages to its employees.
We are also provided with information about the deductions and taxes associated with these wages. From the given information, we can calculate the employees' gross wages before deductions.The total deductions are PAYE payable (£2,480) and National Insurance payable - employees' (£1,350) and employer's (£1,500). To find the gross wages, we need to subtract the total deductions from the net wages:Gross wages = Net wages + DeductionsGross wages = £12,450 + (£2,480 + £1,350 + £1,500)Gross wages = £12,450 + £5,330 = £17,780Therefore, the correct answer is option D: £17,780.