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FNSTPB402 Establish and Maintain a Payroll System Assessment 1 Answer

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

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


Commercial rent income or expensesX


Childcare & education
X

Depreciation


X
Council rates
X

Fruit sales
X

Interest received

X
Commercial rental incomeX


Electricity paidX


Milk purchased
X

Office furniture purchasedX


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)

ServiceBAS serviceNot 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 datePayment receivedCustomerAmount (GST Inclusive)
13 May 201616 July 2016P Lang$3,300 Q4
23 June 201630 June 2016J Kennedy$6,600 Q4
30 June 201614 July 2016D Jay$9,900 Q4


Purchases:

Invoice datePayment dateSupplierAmount  (GST inclusive)
12 Nov 201610 Jan 2017Coloured Metal P/L$1,100
23 Mar 201611 April 2016Oxy Supplies Pty Ltd$5,500
25 June 201630 June 2016Tools Pty Ltd$8,800 Q4

Required:

  1. 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)

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

Cash basis 

Accrual basis (0.50 Marks)

  1. How will you ensure that sufficient and current records are maintained to comply with lodgement requirements? (0.50 Marks)
  2. 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:

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

(a)

Sales$  55,00050,000
Commercial rent received $  22,00020,000
Residential rent received$    8,8008,800
Interest received$    1,2001,200
Dividend income$    3,3003,300
Sale of business printer$    2,2002,200
Sale of shares$    4,4004,400
Total Income$96,90083,300

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

c) PAYG income tax instalment


(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 informationCurrent Quarter
Ordinary income/expense

Income




Export sales G2
770.00

Taxable supplies



Delivery of sales60.00


Dried arrangements2 660.00


Flower arrangements




Baskets5 280.00



Large arrangements14 250.00



Medium arrangements14 025.00



Posies2 910.00



Small arrangements10 406.00



Sprays1 170.00



Wedding bouquets4 500.0055 261.00


Sales of accessories4 700.254 700.25

Total taxable supplies
59 961.25

Interest received
500.00
Total income G1 +990
61 231.25
Purchases of goods sold



Fresh flowers9 768.00


Sundry items738.00


Other stock items  COST GOOD SOLD2 805.5913 311.59

Expenses




Creditable acquisitions



Advertising1 109.00


Commercial rent paid7 440.00


Delivery expenses286.00


Gas and electricity520.00


Insurance




Business412.50


Motor vehicle running costs4 069.35


Printing postage stationery763.00


Professional fees




Accounting2 200.00


Repairs




Equipment repairs1 045.00


Replacement tools186.70


Software expense110.00


Subscriptions110.00


Sundry office expenses45.00


Telephone




Internet125.00



Telephone—other COST GOOD SOLD 375.6018 797.15

GST- free



Staff amenities231.30


Water rates COST GOOD SOLD 231.25462.55

No GST in the price



Bank service charges82.88


Interest expense502.85585.73

Payroll expenses



Leave accrued (not yet paid)1 868.44


PAYG tax withheld (not yet paid)2 899.00


Superannuation1 608.32


Wages17 104.0023 479.76
Total expenses
43 325.19


Capital supplies and acquisitions information:

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

Additional information:

  1. The FBT instalment is $3000 for the quarter 
  2. 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) 
  3. Commissioner's rate is 4.69% 


Complete the following BAS summary. Check later in the class 

ABN XX XXX XXXXXX
Choose No.1 optionSummary

Option 1 Quarterly GST report and payAmounts you owe the ATO  
Total sales and income and other supplies including capital (GST inclusive)G162221GST on sales or GST instalment1A5541=(62221-770-500)/11
  

Wine equalisation tax1C
Does this amount at G1 include GST? Mark with X
XLuxury car tax1E
ExportsG2770PAYG tax withheld42899
Other GST-free suppliesG30PAYG income tax instalment5A(62221-5541)*4.69%=2658
Capital acquisitions (GST inclusive)G102200FBT instalment6A3000
All other acquisitions (GST inclusive)G1132108Fuel tax over claim7C



1A + 4 + 5A + 6A + 7C8A14098









Amounts the ATO owes you 



GST on purchases1B3118=13311.59+2200/11



Wine equalisation tax refundable1D



Luxury car tax refundable1F
These boxes represent the various boxes on the BAS form

Credit from PAYG income tax variation5B



Credit from FBT variation6B



Fuel tax credits7D48



1B + 5B + 6B + 7D8B3166









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

DateDetailsInv/ Rec #Total ReceiptsTotal Sales (including any GST)Amount of GST collectedNon-capital amount (excluding GST)Capital amount (ie asset sales excluding GST)GST-Free
Sales
Input Taxed SalesOther ReceiptsBanking
02/04Fruit Sales
32,500.0032,500.00


32,500.00

32,500.00
09/04Cake Sales
22,000.0022,000.002000.00




22,000.00
15/04Fruit Sales
4,200.004,200.00


4,200.00

4,200.00
24/04Cake Sales
109,450.00109,450.009,950.00




109,450.00
30/04Bank Interest
2,190.002,190.00



2,190.00













Total

170,430.00170,430.0011,950.00

36,700.002,190.00
168,150.00


Cash Payment’s Book

DateDetailChq #Total PaymentsNon-CapitalCapitalGST
Claim
Materials / stockBank FeesWagesSuperCapital incl P&EPrivate Use  %Drawing
04/04Fruit Mkt10338,885.0031,108.00

31,108



20%7,777.00
08/04Cake Supplies10414,095.0011,276.00
1,02510,251



20%2,819.00
12/04Tom .Wins1054,695.00




4,695.00



18/04Cash Register10615,400.00
15,4001,400



14,000.00

26/04Superannuation107






422.00


30/04Bank FeesDD300.00300.00


300.00




Total

73,375.0042,684.0015,4002,42541,359300.004,695.00422.0014,000.00
10,596.00


ABN XX XXX XXXXXX
Choose No.1 optionSummary

Option 1 Quarterly GST report and payAmounts you owe the ATO  
Total sales and income and other supplies including capital (GST inclusive)G1 170,430GST on sales or GST instalment1A 11,950
 
 Wine equalisation tax1C 
Does this amount at G1 include GST? Mark with X
Luxury car tax1E 
ExportsG2 PAYG tax withheld41,236
Other GST-free suppliesG3 36,700PAYG income tax instalment5A 2,322
Capital acquisitions (GST inclusive)G1015,400FBT instalment6A 
All other acquisitions (GST inclusive)G11 42,684Fuel tax over claim7C 



1A + 4 + 5A + 6A + 7C8A 15,508









Amounts the ATO owes you  



GST on purchases1B 2,425



Wine equalisation tax refundable1D 



Luxury car tax refundable1F 
These boxes represent the various boxes on the BAS form

Credit from PAYG income tax variation5B 



Credit from FBT variation6B 



Fuel tax credits7D 



1B + 5B + 6B + 7D8B 









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 DetailsOutputsTaxableExportsGST-FreeInput TaxedExcluded
Commercial rent received6,600  6,600



Residential rent received7,700


7,700
Sales of goods and services51,100 51,100



Interest received480.00


 480
Dividends received





Export sales18,000
18,000


Sale of old photocopier660  600.00



GST free sales4,619.00

 619.00

Total      89,159 58,300180004,6198,180$         -
GST ClassificationG1G6G2G3G4
Worksheet Reference

Classification worksheet (Input)



AmountCapital PurchasesNon CapitalTaxableInput taxedGST-FreeExcluded
PurchasesSupply
Wage & salaries (Gross)60,000     60,000
Stationary4,400 4,4004,400   
Depreciation5,000     5,000
Accounting fees3,300 3,3003,300   
Electrical repairs550 550550   
Business insurance premiums220 220220   
General expenses990 990990   
Bank Charges70 70 70  
Motor vehicle operating costs990 990990   
Telephone550 550550   
Council and water rates330 330  330 
Residential rent expense450 450 450  
Membership Fee66 6666   
Superannuation contributions1,970     1,970
Inventory purchases7,700 7,7007,700   
Commercial rent expenses460 460460   
Computer system update12,14712,147 12,147   
Purchase of new printer3,3003,300 3,300   
PAYG withholding14,000     14,000
Totals116,49315,44720,07634,67352033080,970
GST Classification G10G11G17G13G14 
Worksheet Reference


GST Calculation Worksheet 



G1Total Sales (incl any GST)89,159G10Capital Purchases (incl any GST)15,447
G2Exports18,000G11Non-Capital Purchases (incl any GST)20,076
G3Other GST –Free Sales4,619G12G10 + G1135523
G4Input Taxed Sales8,180G13Purchases for making Input Taxed Sales520
G5G2 + G3 + G4

30799
G14Purchases without GST in the price330
G6Total Sales subject to GST (G1 minus G5)58360


G15Estimated Purchases for Private Use or not Income Tax Deductible
0
G7Adjustments (if applicable)0G16G13 + G14 + G15
850

G8Total Sales subject to GST after Adjustments (G6 +G7) 58,360G17Total Purchases subject to GST (G12 minus G16)

34673

G9GST on Sales (G8 divided by eleven)5305.45G18Adjustments (if applicable)
  
G19Total Purchases subject to GST after adjustments
(G17 + G18)
34673
  
G20GST 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


SeptemberOctoberNovemberDecember
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:

  1.  the Luxury Car Tax (LCT) amount (1 Mark) 
  2. 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 15th 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:

  1. Calculate the WET payable (1 Mark)
  2. 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:

  1. 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

  1. What are the advisory services a bookkeeping business can provide? (0.50 Marks)
  2. How can you ensure that the lodged activity statement has met the legislative and regulatory requirements? (0.50 Marks)
  3. 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)
  4. List the types of Accounting Software used to maintain and record GST records and for GST Lodgments. (0.50 Marks)
  5. 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)
  6. What qualification you need to sign off BAS/IAS to ATO? (0.50 Marks)
  7. 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 / OmissionSelect 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.

  1. Registration Requirements for Tax Agent (0.50 Marks)
  2. Who can be a BAS Agent? (0.50 Marks)
  3. Can BAS agent provide payroll services? (0.50 Marks)
  4. Discuss the scope of BAS agent in payroll services. (0.50 Marks)
  5. 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.


EmployeeTFN QuotedTax Free Threshold ClaimedWeekly WagePAYG TaxHELPNet Wages
Alberto MatadorNONO$431.0047%
202.57
Lance Livestrong YESYES$687.0074,00
635,00
Robbie McEvenYESNO$775.00221,0031,00190,00
Cadel Stevens YESYES$690.0074,00
627,00
Stuart McGradyNONO$520.0047%
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-ResidentTax File NumberPay FrequencyPay / Pay Frequency (Gross Pay)WithholdingYearly Withholding
Tax/ Pay Frequency  Total
18,200Non-ResidentNot QuotedWeekly $                350.00  $         157.50  $      8,190.00 
182,000ResidentQuotedForth Nightly $             7,000.00  $      2,164.66  $    56,293.38 
76,000ResidentNot QuotedForth Nightly $             2,923.08  $      1,315.38  $    35,720.00 
92,000ResidentQuotedWeekly $             1,769.23  $         428.00  $    22,256.00 
90,000Non-ResidentQuotedForth Nightly $             3,461.54  $      1,070.00  $    27,820.00 
45,000ResidentQuotedWeekly $                865.38  $         115.00  $      5,980.00 
36,000Non-ResidentQuotedWeekly $                692.31  $         177.00  $      9,204.00 
25,000ResidentQuotedWeekly $                480.77  $           27.00  $      1,404.00 
32,000ResidentQuotedWeekly $                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 IncomeResident/ Non-ResidentMedicare LevyMedicare Levy Surcharge
18200Non-ResidentNONO
182000Resident            3,6402,730
76000Resident152,00NO
92000Resident1,840920
90000Non-ResidentNONO
45000Resident900NO
36000Non-ResidentNO                 NO
25000Resident500NO
32000Resident640NO

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 NameGeneral Ledger NumberAccount Balance                  Debit ($)Account Balance                  Credit ($)
Cheque Account1-1110120000.00
Petty Cash1-1140500.00
Undeposited Fund1-11801500.00
Accounts Receivable1-12003000.00
Inventory1-130020000.00
Accounts Payable2-1200
35000.00
Payroll Accruals payable2-1410
1400.00


Set up the following employees:

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

Employe employment detailsEmploye employment detailsEmploye employment details 2Employe employment details 3

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 NameGeneral Ledger NumberAccount Balance                  Debit ($)Account Balance                  Credit ($)
Cheque Account1-1110120000.00
Petty Cash1-1140500.00
Undeposited Fund1-11801500.00
Accounts Receivable1-12003000.00
Inventory1-130020000.00
Accounts Payable2-1200
35000.00
Payroll Accruals payable2-1410
1400.00


Load payroll tax. Tick timesheet to process payroll.

Create the following Employee

NameJohn CarrTony Mills
Address43 Williams Street Rosebay NSW 2167333 Kent St
Sydney NSW 2000
Employee IDEMP003EMP001
Date of Birth01/11/196830/05/1972
Pay BasisSalary ($ 45000/ Year)Hourly ($ 25/ Hour)
Pay Frequency WeeklyWeekly
Start Date01/12/201205/07/2011
Tax File Number111 111 111222 222 222
Weekly Hours40
Tax Free Threshold ClaimedYesNo
Superannuation Guarantee
Super FundUse default fund # MN: 122345Use 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: 

  1. 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)
  2. Print and attach Pay Cheque for all employees. (1 mark)
  3. Print and attach Payslips for all employees. (1 mark)
  4. Print payroll liability by category, payroll tax, payroll journal. (1 mark)
  5. 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 Loss70,104.15
Payroll Register Summary Reports - Wages70,104.15
DifferenceNil




PAYG


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




Superannuation


Superannuation Guarantee - Payroll Register Detail Report 6,309.38
Salary Sacrifice - Payroll Register Detail Report3,100.00
Employee Additional - Payroll Register Detail Report 2,400.00
Total Superannuation11,809.38
Less Payments - Superannuation Payments by Fund
 
2,053.84
Superannuation to be paid9,755.54
Superannuation Payable as per Balance Sheet 9,755.54
DifferenceNil

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 21st 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 paymentsW1
Amount withheld from payments
shownatW1
W2
Amount withheld where no ABN is
quoted
W4
Other amounts withheldW3
Total amounts withheldW5


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.
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