FNSTPB402 Establish And Maintain A Payroll System Assessment 1 Answer

Question :

FNSTPB402 Establish and maintain a payroll system

Assessment 1: Portfolio of activities

Answer :

Task 01A (5 marks) - GST Registration, Calculation & Lodgement

Describe cash accounting and accrual accounting systems and the relevant advantages and disadvantages of each. (0.50 Marks)

When would you advise an owner or manager of more than one trading business to trade under a single ABN umbrella? (0.50 Marks)

From what sources would you gather information about the legislative, regulatory, industry and organisational requirements relating to activity statements and information to clarify issues that might arise? List at least eight. (0.50 Marks)

Where can you find information about legislation related to taxes reported on activity statements? (0.50 Marks)

Briefly summarise the Professional Code of Conduct that should be adhered to by tax and BAS agents. Conduct independent research as needed. (0.50 Marks)

Under the Code of Professional Conduct, what action should you take if you become aware of discrepancies between what the client has told you and some of the documentation that you have examined? (0.50 Marks)

A professional client for whom you have acted for many years has provided documents and claims for an overseas trip that was taken to attend a conference. You have prepared the tax return on the basis of that information. (0.50 Marks)

You have been acting as a tax agent for a married couple for many years. They are jointly involved in a business. They have recently been divorced and you are preparing their individual tax returns. They have continued to run the business.

In the past you have legitimately claimed certain deductions from the husband’s income. Now that they are divorced it is clear that claiming deductions for the ex-husband means that the ex-wife is unable to make similar claims to reduce her taxation liabilities.

What would you do to resolve this situation? (0.50 Marks)

You have sought advice from a tax agent who has failed to correctly provide you with advice. You have had to pay penalties as a consequence and have made a complaint to the TPB. What options are available to the TPB when responding to your complaint about the agent? Conduct independent research as needed. (0.50 Marks)

You have been asked to assess the organisation’s compliance with statutory requirements. This is outside of your scope of operation. The requirements are that you examine current policies and practice, assess compliance and make recommendations for improvement. With whom might you consult and what information/ assistance might you need? (0.50 Marks)

Task 01B (3 marks) - GST Registration, Calculation & Lodgement

List the annual GST registration turnover threshold levels applicable to businesses/enterprises.
General businesses
Not for profits
Taxi drivers
Advise the annual turnover threshold rule to be allowed to account for GST on a cash basis. (1 Mark)
Advise the annual turnover threshold rule to be allowed to account for GST on an accrual basis.

Task 02 (1 mark) - Tax Codes

Indicate with an ‘X’ which category the following supplies fall into (0.50 Marks):

Supply	Taxable (10% rate)	GST-free (zero rated)	Input taxed (no rate)	Exempt
Wages or Superannuation paid or received				X
All supplies out for exported goods or services		X
Residential rent income or expenses			X
Money (lent, borrowed, accounts)			X
Fresh food (unprocessed) or medicines		X
Purchase or sale of an asset	X
Commercial rent income or expenses	X
Childcare & education		X
Depreciation				X
Council rates		X
Fruit sales		X
Interest received			X
Commercial rental income	X
Electricity paid	X
Milk purchased		X
Office furniture purchased	X
Bank charges/fees			X
Bag of oranges sold		X
Interest paid			X
Stamp duty paid		X
Water rates paid		X

2. Conduct research and complete the table showing the minimum registration needed to provide the services described. You will need to use the relevant information from the Tax Practitioner Board. (0.50 Marks)

Service	BAS service	Not a tax agent service or BAS service
Applying to the Registrar for an ABN on behalf of a client.
Installing computer accounting software without determining default GST and other codes tailored to the client.
Coding transactions, tax invoices and transferring data onto a computer program for clients through processes that require the interpretation or application of a BAS provision.
Coding transactions, tax invoices and transferring data onto a computer program for clients through processes that do not require the interpretation or application of a BAS provision.
Confirming figures to be included on a client’s activity statement.
Completing activity statements on behalf of an entity or instructing the entity which figures to include.
General training in relation to the use of computerised accounting software not related to client's particular circumstances.
Preparing bank reconciliations.
Entering data without involvement in or calculation of figures to be included on a client's activity statement.
Confirming the withholding tax obligations for the employees of a client.
Services declared to be a BAS service by way of a legislative instrument issued by the TPB.
Preparation and provision of a payment summary that may include reportable fringe benefits amounts and the reportable employer superannuation contributions,
Registering or providing advice on registration for GST or PAYG withholding.
Services under the Superannuation Guarantee (Administration) legislation to the extent that they relate to a payroll function or payments to contractors.
Determining and reporting the superannuation guarantee shortfall and associated administrative fees.
Dealing with superannuation payments made through a clearing house.
Completing and lodging the Taxable payments annual report to the ATO on behalf of a client.
Sending a TFN declaration to the Commissioner on behalf of a client.

Task 03 (2 marks) - GST Registration, Calculation & Lodgement

Glen’s Manufacturing Pty Ltd, a panel beating business reports and pays GST quarterly. The following tables summarise its sales and purchases over time.

Sales:

Invoice date	Payment received	Customer	Amount (GST Inclusive)
13 May 2016	16 July 2016	P Lang	$3,300 Q4
23 June 2016	30 June 2016	J Kennedy	$6,600 Q4
30 June 2016	14 July 2016	D Jay	$9,900 Q4

Purchases:

Invoice date	Payment date	Supplier	Amount (GST inclusive)
12 Nov 2016	10 Jan 2017	Coloured Metal P/L	$1,100
23 Mar 2016	11 April 2016	Oxy Supplies Pty Ltd	$5,500
25 June 2016	30 June 2016	Tools Pty Ltd	$8,800 Q4

Required:

Using the tables provided, determine which quarterly BAS period each of the following transactions would be reported in using:

Cash method of reporting for GST

Accrual method of reporting for GST (0.50 Marks)

Calculate the net GST payable / (refundable) for the quarter ending 30^th June 2016 if the entity reports GST on:

Cash basis

Accrual basis (0.50 Marks)

How will you ensure that sufficient and current records are maintained to comply with lodgement requirements? (0.50 Marks)
Describe how a business will determine the GST lodgement dates for the upcoming fiscal year. (0.50 Marks)

Task 04 (2 marks) - Prepare IAS and PAYG Instalment Income

Rinaan Little operates a small business and receives investment income. She accounts for

GST and PAYG Instalments on a cash basis, reports GST annually and reports PAYG

instalment income quarterly.

This is a list of revenue (GST inclusive where applicable) received for the July – September

2012 quarter by Rinaan Little:

Sales GST	$ 55,000
Commercial rent received GST	$ 22,000
Residential rent received	$ 8,800
Interest received	$ 1,200
Dividend income	$ 3,300
Sale of business printer*	$ 2,200
Sale of shares*	$ 4,400
Total Revenue	$96,900

*asset(s)

Required:

Calculate the PAYG instalment income. (0.50 Marks)
Calculate the PAYG income tax instalment assuming a PAYG income tax instalment rate of 6.20%. (0.50 Marks)
Prepare the Instalment Activity Statement for the quarter using option 2. (0.50 Marks)
What amounts to be reported at G1 label of BAS? (0.50 Marks)

(a)

Sales	$ 55,000	50,000
Commercial rent received	$ 22,000	20,000
Residential rent received	$ 8,800	8,800
Interest received	$ 1,200	1,200
Dividend income	$ 3,300	3,300
Sale of business printer	$ 2,200	2,200
Sale of shares	$ 4,400	4,400
Total Income	$96,900	83,300

b) Calculate the PAYG income tax instalment assuming a PAYG income tax instalment rate of 6.20%. Answer: _____________________________________________________________

c)

(d) Amount reported at G1:______________________

Task 05 (5 marks) - BAS Accruals Method

You are the accountant of Accurate Accounting Pty Ltd. Nice Scent Shoppe is one of your clients of which you prepare BAS on quarterly basis. You have received the following P & L and Balance Sheet information from Nice Scent Shoppe for the current quarter.

Required: Prepare BAS for Nice Scent Shoppe for the current quarter.

GST-inclusive quarter 2 information				Current Quarter
Ordinary income/expense
Income
		Export sales G2			770.00
	Taxable supplies
		Delivery of sales		60.00
		Dried arrangements		2 660.00
		Flower arrangements
			Baskets	5 280.00
			Large arrangements	14 250.00
			Medium arrangements	14 025.00
			Posies	2 910.00
			Small arrangements	10 406.00
			Sprays	1 170.00
			Wedding bouquets	4 500.00	55 261.00
		Sales of accessories		4 700.25	4 700.25
	Total taxable supplies				59 961.25
	Interest received				500.00
Total income G1 +990					61 231.25
Purchases of goods sold
		Fresh flowers		9 768.00
		Sundry items		738.00
		Other stock items COST GOOD SOLD		2 805.59	13 311.59
Expenses
	Creditable acquisitions
		Advertising		1 109.00
		Commercial rent paid		7 440.00
		Delivery expenses		286.00
		Gas and electricity		520.00
		Insurance
			Business	412.50
		Motor vehicle running costs		4 069.35
		Printing postage stationery		763.00
		Professional fees
			Accounting	2 200.00
		Repairs
			Equipment repairs	1 045.00
		Replacement tools		186.70
		Software expense		110.00
		Subscriptions		110.00
		Sundry office expenses		45.00
		Telephone
			Internet	125.00
			Telephone—other COST GOOD SOLD	375.60	18 797.15
	GST- free
		Staff amenities		231.30
		Water rates COST GOOD SOLD		231.25	462.55
	No GST in the price
		Bank service charges		82.88
		Interest expense		502.85	585.73
	Payroll expenses
		Leave accrued (not yet paid)		1 868.44
		PAYG tax withheld (not yet paid)		2 899.00
		Superannuation		1 608.32
		Wages		17 104.00	23 479.76
Total expenses					43 325.19

Capital supplies and acquisitions information:

The firm sold an old refrigerator for $990
Purchased a new refrigerator for $2200 (GOST GOOD SOLD ) G1

Additional information:

The FBT instalment is $3000 for the quarter
The firm used 150 litres of petrol in business operations (generators). The fuel tax credit rate for retail activities is 32.623 cents per litre (rate from 1st of July 2012 to 30th June 2013)
Commissioner's rate is 4.69%

Complete the following BAS summary. Check later in the class

ABN XX XXX XXXXXX
Choose No.1 option			Summary
Option 1 Quarterly GST report and pay			Amounts you owe the ATO
Total sales and income and other supplies including capital (GST inclusive)	G1	62221	GST on sales or GST instalment	1A	5541=(62221-770-500)/11
			Wine equalisation tax	1C
Does this amount at G1 include GST? Mark with X		X	Luxury car tax	1E
Exports	G2	770	PAYG tax withheld	4	2899
Other GST-free supplies	G3	0	PAYG income tax instalment	5A	(62221-5541)*4.69%=2658
Capital acquisitions (GST inclusive)	G10	2200	FBT instalment	6A	3000
All other acquisitions (GST inclusive)	G11	32108	Fuel tax over claim	7C
			1A + 4 + 5A + 6A + 7C	8A	14098

			Amounts the ATO owes you
			GST on purchases	1B	3118=13311.59+2200/11
			Wine equalisation tax refundable	1D
			Luxury car tax refundable	1F
These boxes represent the various boxes on the BAS form			Credit from PAYG income tax variation	5B
			Credit from FBT variation	6B
			Fuel tax credits	7D	48
			1B + 5B + 6B + 7D	8B	3166

			Payment or refund?
			Is 8A more than 8B? (indicate with an X)
			Yes, then write the result of 8A minus 8B at 9. This is the amount payable to the ATO.
					10932
			No, then write the result of 8B minus 8A at 9. This amount is refundable to you (or offset against any other tax debt you have).
					Payment due
				9	10932

Reconciliation:

Reconciling PAYG instalment Income:

Balance as per Balance Sheet
Balance as per BAS Summary
Difference
Reconciled?	☐ *Yes* ☐ No

Reconciling GST Control Account:

GST Collected amount extracted from BAS summary

GST collected

GST Paid amount extracted from BAS summary

GST paid

Net GST Payable

Net GST Payable to ATO

GST control as per Balance Sheet

As per Balance sheet

Difference between Net GST Payable to ATO and the GST Control amount as per Balance sheet
Reconciled?	☐ *Yes* ☐ No

Task 06 (5 marks) - BAS Cash book Method

Ms Justyna Jason operates two related businesses; a fruit shop and a cake shop. The two related businesses have applied to form a GST group and have satisfied certain membership requirements. Damon trades under the business names: ‘Jason the Fruiter’ and ‘Dillinger’s Cakes’ respectively. The GST group are treated as a single entity. The Cake business, ‘Justyna’s Cakes’ is known as the ‘representative member’, managing the group’s GST affairs. The group accounts for GST on a cash basis and have chosen to report GST monthly. PAYG income tax instalment and PAYG tax withheld are reported quarterly.

The following page(s) are the extracts of April’s monthly Cash Receipts Book and Cash Payment’s Book.

Required:

Complete the Business Activity Statement for the month on September 2018 by extracting the data from the Cash Receipts and Cash Payments Book.

Note 1: PAYG withholding amount from Tom Win’s salary is $1,236

Note 2: The business has got ATO given PAYG Instalment Payment which pre-printed in T7. The amount is $2,322

Note3: Use the Spreadsheet template to complete this task.

Cash Receipts Book

Date	Details	Inv/ Rec #	Total Receipts	Total Sales (including any GST)	Amount of GST collected	Non-capital amount (excluding GST)	Capital amount (ie asset sales excluding GST)	GST-Free Sales	Input Taxed Sales	Other Receipts	Banking
02/04	Fruit Sales		32,500.00	32,500.00				32,500.00			32,500.00
09/04	Cake Sales		22,000.00	22,000.00	2000.00						22,000.00
15/04	Fruit Sales		4,200.00	4,200.00				4,200.00			4,200.00
24/04	Cake Sales		109,450.00	109,450.00	9,950.00						109,450.00
30/04	Bank Interest		2,190.00	2,190.00					2,190.00

Total			170,430.00	170,430.00	11,950.00			36,700.00	2,190.00		168,150.00

Cash Payment’s Book

Date	Detail	Chq #	Total Payments	Non-Capital	Capital	GST Claim	Materials / stock	Bank Fees	Wages	Super	Capital incl P&E	Private Use %	Drawing
04/04	Fruit Mkt	103	38,885.00	31,108.00			31,108					20%	7,777.00
08/04	Cake Supplies	104	14,095.00	11,276.00		1,025	10,251					20%	2,819.00
12/04	Tom .Wins	105	4,695.00						4,695.00
18/04	Cash Register	106	15,400.00		15,400	1,400					14,000.00
26/04	Superannuation	107								422.00
30/04	Bank Fees	DD	300.00	300.00				300.00
Total			73,375.00	42,684.00	15,400	2,425	41,359	300.00	4,695.00	422.00	14,000.00		10,596.00

ABN XX XXX XXXXXX
Choose No.1 option			Summary
Option 1 Quarterly GST report and pay			Amounts you owe the ATO
Total sales and income and other supplies including capital (GST inclusive)	G1	170,430	GST on sales or GST instalment	1A	11,950
			Wine equalisation tax	1C
Does this amount at G1 include GST? Mark with X		x	Luxury car tax	1E
Exports	G2		PAYG tax withheld	4	*1,236*
Other GST-free supplies	G3	36,700	PAYG income tax instalment	5A	*2,322*
Capital acquisitions (GST inclusive)	G10	15,400	FBT instalment	6A
All other acquisitions (GST inclusive)	G11	42,684	Fuel tax over claim	7C
			1A + 4 + 5A + 6A + 7C	8A	15,508

			Amounts the ATO owes you
			GST on purchases	1B	2,425
			Wine equalisation tax refundable	1D
			Luxury car tax refundable	1F
These boxes represent the various boxes on the BAS form			Credit from PAYG income tax variation	5B
			Credit from FBT variation	6B
			Fuel tax credits	7D
			1B + 5B + 6B + 7D	8B

			Payment or refund?
			Is 8A more than 8B? (indicate with an X)
			Yes, then write the result of 8A minus 8B at 9. This is the amount payable to the ATO.

			No, then write the result of 8B minus 8A at 9. This amount is refundable to you (or offset against any other tax debt you have).
					Payment due
				9	13083

Task 07 (5 marks) - BAS using a classification worksheet

Classification worksheet (Output)

Account Details	Outputs	Taxable	Exports	GST-Free	Input Taxed	Excluded
Commercial rent received	6,600	6,600
Residential rent received	7,700				7,700
Sales of goods and services	51,100	51,100
Interest received	480.00				480
Dividends received
Export sales	18,000		18,000
Sale of old photocopier	660	600.00
GST free sales	4,619.00			619.00
Total	89,159	58,300	18000	4,619	8,180	$ -
GST Classification	G1	G6	G2	G3	G4
Worksheet Reference

Classification worksheet (Input)

	Amount	Capital Purchases	Non Capital	Taxable	Input taxed	GST-Free	Excluded
Purchases	Supply
Wage & salaries (Gross)	60,000						60,000
Stationary	4,400		4,400	4,400
Depreciation	5,000						5,000
Accounting fees	3,300		3,300	3,300
Electrical repairs	550		550	550
Business insurance premiums	220		220	220
General expenses	990		990	990
Bank Charges	70		70		70
Motor vehicle operating costs	990		990	990
Telephone	550		550	550
Council and water rates	330		330			330
Residential rent expense	450		450		450
Membership Fee	66		66	66
Superannuation contributions	1,970						1,970
Inventory purchases	7,700		7,700	7,700
Commercial rent expenses	460		460	460
Computer system update	12,147	12,147		12,147
Purchase of new printer	3,300	3,300		3,300
PAYG withholding	14,000						14,000
Totals	116,493	15,447	20,076	34,673	520	330	80,970
GST Classification		G10	G11	G17	G13	G14
Worksheet Reference

GST Calculation Worksheet

Total Sales (incl any GST)

89,159

G10

Capital Purchases (incl any GST)

15,447

Exports

18,000

G11

Non-Capital Purchases (incl any GST)

20,076

Other GST –Free Sales

4,619

G12

G10 + G11

35523

Input Taxed Sales

8,180

G13

Purchases for making Input Taxed Sales

520

G2 + G3 + G4

30799

G14

Purchases without GST in the price

330

Total Sales subject to GST (G1 minus G5)

58360

G15

Estimated Purchases for Private Use or not Income Tax Deductible

Adjustments (if applicable)

G16

G13 + G14 + G15

850

Total Sales subject to GST after Adjustments (G6 +G7)

58,360

G17

Total Purchases subject to GST (G12 minus G16)

34673

GST on Sales (G8 divided by eleven)

5305.45

G18

Adjustments (if applicable)

G19

Total Purchases subject to GST after adjustments
(G17 + G18)

34673

G20

GST on Purchases (G19 divided by eleven)

3152.09

NET GST PAYABLE

2153.36

(G9 minus G20)

c) Cash flow

Jumping Jacks Pty Ltd has provided an extract of their forecasted cash flow and you have prepared the BAS for the September quarter, the payment due as shown on the BAS is $30,000.

Extracted forecasted cash flow

	September	October	November	December
Estimated Closing bank balance	$30,000	($70,000)	($50,000)	$10,000

Required:

Jumping Jack’s Pty Ltd reports and pays GST quarterly. From the above information what would you bring to the attention of your client regarding the payment of this amount? Describe the main cash inflow and outflows that a business might experience.

Task 08 (5 marks) - LCT, WET and FTC

Luxury Car Tax

Luxury Car Pty Ltd is in the business of selling motor vehicles. A luxury motor vehicle is made available for sale and is priced initially at $85,200. Based on the 2016/2017 luxury car tax threshold of $75,526and LCT rate of 33%:

Required:

Calculate:

the Luxury Car Tax (LCT) amount (1 Mark)
the new selling price of the vehicle (1 mark)

Solution:

Luxury car tax (LCT)	2016/2017
Luxury car threshold
Motor vehicle for sale GST inclusive priced at …
LCT rate
Amount exceeding threshold (GST inclusive)
Amount exceeding threshold (GST exclusive)
Apply LCT to excluded amount
Enter whole dollars only at LCT at 1E on BAS Summary
Therefore, new sale price is …

Wine Equalisation Tax

LWS Wine Wholesalers is voluntarily registered for GST and has not made an election to pay GST by instalments, hence has chosen to report and pay / claim a refund of GST annually. The tax agents have advised that for the 2016/2017 financial year the business is required to lodge its income tax return by 15^th May 2018.

During 2016/2017 it derived ‘assessable dealings’ from the sale of its taxable wine supplies amounting to $70,404 (GST and WET inclusive) for the quarter.

Required:

Calculate the WET payable (1 Mark)
When is the WET due date? (1 Mark)

Solution:

Fuel Tax Credit

Western Union Landscaping Supplies Pty Ltd mines sand to use in landscaping. They dominate the sand mining industry and have a GST turnover of more than $20 million dollars! Due to this they must report and pay GST monthly and lodge his activity statement electronically.

Western Union’s records show that they used $392,000 of diesel at $1.42 per litre and $120,800 of unleaded petrol at $1.29 per litre for the business excavations for the month of June 2016.

The diesel and unleaded petrol they use in their excavators are eligible for fuel tax credits. The current fuel tax credit rate for mining activities is 40.10 cents per litre.

Required:

Calculate the fuel tax credit Western Union Landscaping Supplies Pty Ltd may claim using the basic ‘constructive method’ calculation. (1 Mark)

Solution:

Litres of diesel used
Litres of unleaded used
Total litres used in business activities

Fuel tax credit

Task 09 (5 marks) - Research Task and Adjustment

What are the advisory services a bookkeeping business can provide? (0.50 Marks)
How can you ensure that the lodged activity statement has met the legislative and regulatory requirements? (0.50 Marks)
What is the purpose of a code of conduct and what do they normally contain? How will a code of practice assist you in guiding your actions? (0.50 Marks)
List the types of Accounting Software used to maintain and record GST records and for GST Lodgments. (0.50 Marks)
As a Bookkeeper you receive confidential financial records of your clients. Explain:
1. Which section of Privacy Act 1988 prohibits you to disclose these financial records to other clients and fellow bookkeepers? (0.50 Marks)
2. What role industry codes of practice and industry codes of ethics play here? (0.50 Marks)
What qualification you need to sign off BAS/IAS to ATO? (0.50 Marks)
Research Income Tax Assessment Act 1997 and explain:
1. Which division discusses about GST and what are the areas? (0.50 Marks)

You are given some unrelated examples of errors/ omissions that were made on prior BAS reports. Advise whether they are errors requiring lodgement of a Revised Activity Statement or adjustments (increasing / decreasing) to account for when lodging the next BAS. (1 Mark)

Error / Omission	Select one appropriate solution from the following: Lodgement of revised activity due to Error Increasing Adjustment Decreasing Adjustment
You have just discovered that 2 years ago you left out $44,000 of taxable supplies from the BAS
A previous purchase of $12,500 included in a prior BAS has been cancelled
You have failed to claim input tax credits on an invoice of $3,300 in the last BAS
A sale of $8,800 reported in a prior BAS has become taxable
A taxable sale of $3,500 from the last quarterly BAS has now been cancelled

Part B: Establish and Maintain a Payroll System (35 Marks)

Task 10 (7.5 marks) - Payroll Basics

Instruction for student:

This is an individual task with written response. You need to visit the following websites to answer the questions,

www.ato.gov.au

www.fairwork.gov.au

(Answer all questions)

A new member of the staff-Sahara has been working with you for two months. She is new to the financial services industry. She needs a clear understanding of how this industry’s system works in practice. She studied the structure of the industry in her Diploma of Business class but she has forgotten most of what she learnt. You are given a job by your supervisor to provide a comprehensive orientation on payroll, particularly focusing in the following areas:

Australian Business Number (ABN) (0.50 Marks)

Tax File Number (TFN) Declaration (0.50 Marks)

HELP (0.50 Marks)

Medicare levy (0.50 Marks)

ATO Pay as You Go (PAYG) withholding tax laws (0.50 Marks)

Australian Bureau of Statistics (ABS) Act 1975 (0.50 Marks)

ATO Fringe Benefits Tax laws (0.50 Marks)

ATO Superannuation Laws (0.50 Marks)

Tax Agent Services Act 2009 (TASA 2009) (0.50 Marks)

Industry Awards (0.50 Marks)

Leave Acts: annual, sick and long service (0.50 Marks)

Payroll tax laws (0.50 Marks)

Privacy Act 1988 (0.50 Marks)

Workers compensation and occupational health and safety (0.50 Marks)

(OHS) Acts and regulations (0.50 Marks)

Task 11 (2.5 marks) - Payroll Basics

Sandra has just finished her Bachelor of Accounting from the University of Sydney. She wants to become a registered tax agent. Please advise Sandra the registration requirements and codes of professional conduct from Tax Practitioners Board (www.tpb.gov.au) and Business Activity Statement Agent.

Registration Requirements for Tax Agent (0.50 Marks)
Who can be a BAS Agent? (0.50 Marks)
Can BAS agent provide payroll services? (0.50 Marks)
Discuss the scope of BAS agent in payroll services. (0.50 Marks)
Who else can provide payroll services? identify the need for independent expert advice providers. (0.50 Marks)

Task 12 (2 Marks) - PAYG & HELP

Instruction for student:

This is an individual task. You need to calculate PAYG Tax and HELP debt for the following employees (Use current year Weekly tax table and Weekly HELP table available in ATO website www.ato.gov.au) assuming all employees are residents below.

Employee	TFN Quoted	Tax Free Threshold Claimed	Weekly Wage	PAYG Tax	HELP	Net Wages
Alberto Matador	NO	NO	$431.00	47%		202.57
Lance Livestrong	YES	YES	$687.00	74,00		635,00
Robbie McEven	YES	NO	$775.00	221,00	31,00	190,00
Cadel Stevens	YES	YES	$690.00	74,00		627,00
Stuart McGrady	NO	NO	$520.00	47%		244,40
Total

PAYG & HELP

Task 13 (3 marks) - PAYG, Pay Frequency & Withholding Calculation

Instruction for student:

This is an individual task. You need to fill the following table using appropriate tax table from ATO website www.ato.gov.au (Please show your calculations / break down below the table). All these employees have worked 52 weeks in the 2014- 2015 financial year.

Yearly Income ($)	Resident/ Non-Resident	Tax File Number	Pay Frequency	Pay / Pay Frequency (Gross Pay)	Withholding	Yearly Withholding
Tax/ Pay Frequency	Total
18,200	Non-Resident	Not Quoted	Weekly	$ 350.00	$ 157.50	$ 8,190.00
182,000	Resident	Quoted	Forth Nightly	$ 7,000.00	$ 2,164.66	$ 56,293.38
76,000	Resident	Not Quoted	Forth Nightly	$ 2,923.08	$ 1,315.38	$ 35,720.00
92,000	Resident	Quoted	Weekly	$ 1,769.23	$ 428.00	$ 22,256.00
90,000	Non-Resident	Quoted	Forth Nightly	$ 3,461.54	$ 1,070.00	$ 27,820.00
45,000	Resident	Quoted	Weekly	$ 865.38	$ 115.00	$ 5,980.00
36,000	Non-Resident	Quoted	Weekly	$ 692.31	$ 177.00	$ 9,204.00
25,000	Resident	Quoted	Weekly	$ 480.77	$ 27.00	$ 1,404.00
32,000	Resident	Quoted	Weekly	$ 615.38	$ 61.00	$ 3,172.00

Task 14 (2 marks)- Medicare Levy and MLS Calculation

Instruction for student:

This is an individual task. You need to calculate Medicare Levy & Medicare Levy Surcharge based of individual’s yearly income. All these employees are adult, single and have no private health insurance cover. Please show your calculations / break down below the table.

Yearly Income	Resident/ Non-Resident	Medicare Levy	Medicare Levy Surcharge
18200	Non-Resident	NO	NO
182000	Resident	3,640	2,730
76000	Resident	152,00	NO
92000	Resident	1,840	920
90000	Non-Resident	NO	NO
45000	Resident	900	NO
36000	Non-Resident	NO	NO
25000	Resident	500	NO
32000	Resident	640	NO

Task 15 (10 marks) - Record Employee Information & Process Payroll

Instruction for student:

This is an individual task. You need to create a company file in MYOB using the given information and enter employee details and their payroll details applying relevant legislation and standards. Send your MYOB file at your teacher’s email address. (Refer to eLearning for other employee information and weekly timesheet)

Required: Create a company using the following information in MYOB and Process Payroll

Set up a company with your name- Your First Name-Last Name-Your Student ID Mount Isa Cleaners Pty Ltd with ABN 99 999 999 999. Use current year (you don’t need to change any details, like conversion month, current year). Select Retail industry with business type- Garden Centre/ Nursery. Load tax level. Load payroll tax. Use 9.50% for all super rate. Set up the opening Balance:

Account Name	General Ledger Number	Account Balance Debit ($)	Account Balance Credit ($)
Cheque Account	1-1110	120000.00
Petty Cash	1-1140	500.00
Undeposited Fund	1-1180	1500.00
Accounts Receivable	1-1200	3000.00
Inventory	1-1300	20000.00
Accounts Payable	2-1200		35000.00
Payroll Accruals payable	2-1410		1400.00

Set up the following employees:

(Refer to eLearning for other employee information and weekly timesheet)

Employe employment details

Task 16 (5 marks)- Process Weekly Payroll Using MYOB

Instruction for student:

This is an individual task. You need to create a company file in MYOB using the given information and enter employee details, their payroll details and process Weekly payroll. You need to print 2 payslips and 2 paycheques and send your MYOB file at your teacher’s email address.

Process Weekly payroll using MYOB

Set up a company with your name- ABC LTD with ABN 99 999 999 999. Use current year (you don’t need to change any details, like conversion month, current year). Select Retail industry with business type- Garden Centre/ Nursery. Load tax level. Starting day of the week is Monday and the following Monday is the pay day. Current super rate is 9.50%.

Set up the opening Balance

Account Name	General Ledger Number	Account Balance Debit ($)	Account Balance Credit ($)
Cheque Account	1-1110	120000.00
Petty Cash	1-1140	500.00
Undeposited Fund	1-1180	1500.00
Accounts Receivable	1-1200	3000.00
Inventory	1-1300	20000.00
Accounts Payable	2-1200		35000.00
Payroll Accruals payable	2-1410		1400.00

Load payroll tax. Tick timesheet to process payroll.

Create the following Employee

Name	John Carr	Tony Mills
Address	43 Williams Street Rosebay NSW 2167	333 Kent St Sydney NSW 2000
Employee ID	EMP003	EMP001
Date of Birth	01/11/1968	30/05/1972
Pay Basis	Salary ($ 45000/ Year)	Hourly ($ 25/ Hour)
Pay Frequency	Weekly	Weekly
Start Date	01/12/2012	05/07/2011
Tax File Number	111 111 111	222 222 222
Weekly Hours	40
Tax Free Threshold Claimed	Yes	No
Superannuation Guarantee
Super Fund	Use default fund # MN: 122345	Use default fund # MN: 122346
Wages:
Base Salary
Base Hourly
Holiday Pay
Overtime 1.5X
Overtime 2X
Sick pay
Entitlements:
Holiday Leave Accrual
Sick Leave Accruals

Deductions:
Union Fee ($40/year)

Time Sheets (Last 2 week)

You have found the following information after looking their time sheets,

Tony Mills worked 8 hours in each weekdays and he was sick on Friday. None employee worked during weekends.

Required:

Process weekly payroll for the last week ended on June and first week ended on July this year and present payroll report for verification and approval to your supervisor. (1 mark)
Print and attach Pay Cheque for all employees. (1 mark)
Print and attach Payslips for all employees. (1 mark)
Print payroll liability by category, payroll tax, payroll journal. (1 mark)
Email your MYO file to your supervisor’s email (Your teacher’s email). (1 mark)

Task 17 (1 mark)- Reconciliation

Reconcile the payroll for the month

To reconcile the payroll, you will need to do the following:

Print a Payroll Register Report for the month
Print a Profit & Loss Statement for the month
Print a Balance Sheet for the month
Using an appropriate format given below, reconcile your monthly payroll and submit the completed reconciliation as part of your Assessment.

Task 18 (1 mark)- Handle Payroll Queries

You are required to answer the following questions in short written answer form. Dot point is also acceptable if all parts of each question are answered.

1. The Manager is checking the cash flow for the period and can’t find the figures for the payroll to date this month. He asks you to provide him with the following information:

•The superannuation payable on the staff wages for the two weeks

•The PAYG tax payable for the two weeks

What figures would you provide to the Manager?

2. An employee has contacted you requesting details of his total superannuation payments. He also requested, on behalf of his wife (Also works in the same organisation), details of her total superannuation payments. He would like a total year to date figure for him and his wife.

What advice would you provide?

3. An employee has advised that she may need to take some additional personal leave for a hospital stay in the next few weeks. She thinks she might need to take about two days for the hospital stay and maybe another day or two after that at home. She asks you to check that she will have enough personal leave.

What advice would you give her?

4. One employee has a query regarding his superannuation. He is concerned that no superannuation has been calculated on his Pay Slip for the week.

What advice would you give him?

Task 19 (1 mark)- BAS and IAS

Complete PAYG Tax withheld portion of the Business’s Activity Statement from the following information:

Information 1:

Payroll Reconciliation for the month ending 30 June

Wages and Salaries

"Wages and Salaries" as per Profit and Loss		70,104.15
Payroll Register Summary Reports - Wages		70,104.15
Difference		Nil


PAYG

"PAYG Withholding Payable" as per Balance Sheet		18,087.00
Payroll Summary Report - Taxes		18,087.00
Difference		Nil


Superannuation

Superannuation Guarantee - Payroll Register Detail Report		6,309.38
Salary Sacrifice - Payroll Register Detail Report	3,100.00
Employee Additional - Payroll Register Detail Report		2,400.00
Total Superannuation		11,809.38
Less Payments - Superannuation Payments by Fund		2,053.84
Superannuation to be paid		9,755.54
Superannuation Payable as per Balance Sheet		9,755.54
Difference		Nil

Complete PAYG Tax withheld portion of the Business’s Activity Statement from the following information (5 marks):

Information 2:

The company has also paid $5,243 to a contractor where no ABN was quoted in the invoice.

Requirement:

It is the 21^st July and you are preparing your monthly Business Activity Statement (BAS). From the above information please complete the following section from the company’s Business Activity Statement (BAS):

PAYG Tax withheld
Total salary, wages & other payments	W1
Amount withheld from payments shownatW1	W2
Amount withheld where no ABN is quoted	W4
Other amounts withheld	W3
Total amounts withheld	W5

You must submit:

All tasks provided in the assignment must be submitted.
The assignment on due date.

Your assessor will be looking for:

Successfully completion of each task.

Tags:fnstpb402

FNSTPB402 Establish And Maintain A Payroll System Assessment 1 Answer

Question :

Answer :

Reconciliation:

Wine Equalisation Tax

Solution:

Fuel Tax Credit

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