Association of Chartered Certified Accountants (ACCA) Certification Practice Test

Which of the following data types would be included in variable payroll data?

1. Tax code details

2. Gross pay to date

3. Holidays

4. Employee engagement data

The correct answer is: Gross pay to date

The inclusion of gross pay to date as a type of variable payroll data is appropriate because it directly reflects the actual earnings of an employee over time, which can change based on hours worked, overtime, bonuses, or deductions. Variable payroll data is characterized by its fluctuation depending on the specific circumstances of the pay period, such as changes in hours worked or variable pay components. In contrast, tax code details tend to remain consistent over a period unless there are changes in tax legislation or personal circumstances, making them more fixed rather than variable. Holidays generally refer to accrued leave or holiday entitlements, which are also not variable in the same way as gross pay, as they do not fluctuate based on the current pay period. Employee engagement data is usually qualitative and not directly tied to payroll, focusing more on satisfaction and morale rather than financial remuneration. This categorization emphasizes the dynamic nature of variable payroll data that directly impacts compensation.