Assessment Instructions – Essay Furious


Task 1

Assessment Instructions

This is an individual assessment. You are required to answer a series of questions.

You must answer all of the questions below, and include examples where appropriate. Please ensure that you have answered each question with an appropriate level of detail. If you need help understanding any questions, ask your assessor to explain.

To be deemed competent you will need to successfully demonstrate the following:
– You must complete and successfully answer all questions.

Question 1
Theatre Industries provides you with the following information for 14 December 2015.

Name Hours Worked Rate per hour
V Hugo 40 $16
E Davis 45 $17
C Chaplin 35 $22
F Astair 38 $15
J Little 50 $17

There are 35 hours in a normal working week; excess hours are paid at time and a half.
Additional personal contributions for superannuation were deducted for Hugo ($30.80), Chaplin ($47.60) and Little ($33.60).
All employees are paid by electronic transfer batch.

Required:
1. Payroll Register for the week ended 14/12/2015.
2. Journal entry to record the payroll for the week ended 14/12/2015.
3. Journal entry for the payment of net wages by EFT batch.

Payroll Register for the week ended 14 December

    Hours Earnings Deductions  
 

Name

 

Rate

 

Ordinary

Times 1.5  

Ordinary

Times 1.5 Gross Pay  

Tax

 

Super

 

Net Pay

Hugo                  
Davis                  
Chaplin                  
Astair                  
Little                  
                   

Question 2
As payroll officer for Fairway Products you are given the following information and tasks:

Apple is paid $28 per hour for a 38-hour week and works 4 hours overtime (@×1.5).
Wood is paid $40 per hour for a 38-hour week and works 5 hours overtime (4 hrs @×1.5 and 1 hr @ double time). He took one day of annual leave on Monday.

Deductions from gross wages are:

PAYG withheld                 Calculate at 30% of gross wages

Medical Fund                    Apple $40, Woods $50

Union Fees                        $45 per employee

Deductions from gross wages are:
PAYG withheld Calculate at 30% of gross wages Medical Fund Apple $40, Woods $50
Union Fees $45 per employee

Required:
1. Prepare the payroll Register for 31 March
2. Prepare the General Journal entry to record the payroll for 31 March
3. Prepare the General Journal entry to pay employees individually by cheque.
4. Prepare the General Journal entry (summary form) to pay the deducted amounts at 31 March, given that the amounts owing from the previous March payrolls were:
PAYG Withheld $3,058

Health Fund $270

Union $260

Question 3
On 15 June 2016 (the end of the weekly pay period), Heather retired after joining her employer in 1997. On retirement, she had 25 hours of annual leave, and 300 hours of long service leave accrued.

Pay details:
– Pay rate is $30 per hour and nominal hours are 38 per week, giving gross weekly wage of
$1,140
– Heather claims the tax free threshold and no rebates. Heather has supplied her TFN.
– Heather is entitled to leave loading.
– Heather has accrued 100 hours of personal leave that is paid on termination.
– Heather qualifies for an early retirement scheme incentive payment of $10,000. The accountant advises that this amount is taxed at 17% including Medicare Levy.

Required:
Determine Heather's final pay, referring to the Termination Payments Summary for the tax rates of each component of gross pay.

Question 4
Noble Pluming provides plumbing services to domestic and industrial customers.
Contract services are provided by Barry Stones, who is registered for the GST. He has entered into a voluntary agreement with Noble Plumbing to withhold 20% voluntary withholdings from his invoices. He reasons that his will assist him in managing his cash. The June invoice from Barry Stones amounts to $2,000.
Also in June, Noble Plumbing received an invoice from Checks and Balances Bookkeeping who had many clients in town. After several requests to provide an ABN, this wasn't forthcoming. Noble Plumbing decided that it had no option but to withhold from the invoice, which was for a total of $280 (no GST).

Required:
1. Calculate the withholding amounts.
2. Outline the reporting responsibilities of Noble Plumbing in relation to each transaction.
3. Complete the PAYG Withheld reporting for Noble Plumbing who provide the following information for the end of September:
– PAYG Withheld $2,478 from total salary and wages
– Gross salary and wages (including tax withheld) is $13,467
– $485 withheld from a supplier who did not quote his ABN

You are required to conduct the appropriate research and answer the following questions.

Question 5
List the information provided to the payroll clerk from the following forms:
1. TFN Declaration
2. Withholding Declaration
3. Superannuation Standard Choice From

Question 6
Go to the Australian Taxation Office website. Briefly outline the responsibilities of an employer in relation to PAYG Withheld from salaries and wages:
1. For keeping records of each pay.
2. At the end of each BAS period.
3. At the end of each financial year.

Question 7
Answer the following questions in relation to the modern award:
Banking, Finance and Insurance Award 2010
1. What is the minimum annual salary for an adult Level 2 employee?
2. What percentage of the adult rate must an 18 year old be paid at a minimum?
3. What is the first aid allowance paid to a full-time employee or performing first aid duties?
4. At what rate is overtime paid on a Sunday?
5. Annual leave leading is calculated at what rate under this award?
6. At what rate are employees paid for working on a public holiday?

Question 8
Answer the following questions in relation ATO requirements:
1. What is an ABN and are you required to obtain an ABN for GST purposes?
2. What are the three main obligations for an Employer when a new Employee is hired?
3. An Employer hired a new staff member on the 15th of the month, when must the TFN Declaration be sent the ATO? Who does it need to be signed by?
4. What are the consequences of an employee not quoting their TFN to their employer?
5. What are the ATO's requirements for salary packaging? List and describe the four types of organisations (according to the ATO) in relation to salary packaging.
6. List two types of items that can be salary packaged for all organisation types – and two types of items that cannot be packaged for commercial organisations.

Question 9
1. How does the Higher Education Loan Program (HELP) work, what implications does it have on employers?
2. Why did the government introduce the Superannuation Guarantee charge? What is the current rate and how is it worked out?
3. What is the requirement to an employer if they pay a fringe benefit of $3,250 to an employee?

Question 10
1. The Code of Professional Conduct requires BAS Agents to take “reasonable care” in preparation of reports and returns and other processes required of their client. What does “reasonable care” means? What is regarded as unreasonable?
2. What guidelines do the Code of Professional Conduct give in relation to Conflict of Interest situations that a BAS Agent may encounter?

Question 11
1. What are the principles of workplace privacy?
2. What is the definition of unfair dismissal? What is Fair Work's role in relation to unfair dismissal cases?
3. John is aged 50. After 2 years service, he is to be terminated from his position and employment. How much written notice should Fred receive?

Question 12
1. What is a BAS Service?
2. What is a BAS Service Provider?
3. How many hours of experience does an individual need to have completed in the preceding three years in order to register as a BAS agent?
4. Brian Davis has been a bookkeeper for 10 years. During this time he was also a financial planner. Brian wants to become a BAS agent and as completed a Certificate IV Financial Services (Bookkeeping).
He has also accrued more than 1,500 hours of relevant experience. A few years ago Brian was fined $300 for promoting a tax exploitation scheme to some of his clients as part of its financial planning business.
Would the TPB approve Brian's application? Justify your answer?

Question 13
1. What are the advantages of a computerised payroll system over a manual system?
2. Explain the importance of accurate payroll accounting.

Question 14
1. What should you consider when handling payroll enquiries?
2. What should you do to handle a dispute that arises from a payroll enquiry?
3. Who should be notified if a discrepancy is found?
4. If an enquiry is outside your area of responsibility or knowledge, what should you do?

Task 2

– Complete Sections A and B
–           Attach this two-page cover sheet to your assessment submission
–           Submit your assessment to your trainer/assessor
–           Retain Section B as proof of submission
–           Please refer to the Plagiarism Policy and Assessment Appeal and Reassessment Policy in the Student Handbook for more information.

Assessment Instructions

This is an individual assessment. You are required to complete the following tasks using MYOB AccountRight v19. You must answer all of the questions below. If you need help understanding any questions, ask your assessor to explain.

Case Study
Harrison Photo is a small photography firm owned and managed by David Harrison. David Harrison is the Chief Financial Officer (CFO) for the company.

In this case study you are taking on the role of Payroll Clerk and you are required to prepare and process the company's fortnightly payroll for its three staff.

Staff Member Role Employment Status Salary/Wages
Mary Ricoh Photographer Full-time $28   per hour
Jack Olympus Photographer Part-time $22 per hour
Peter Canon Manager Full-time $60,000   p.a.

Contact Details

Contact: Payroll Clerk Contact: David Harrison (CFO)
Phone:   (02) 9344 4421 Phone:   (02) 9344 4420

Harrison Cheque Account details

Pay Policy
All full-time employees work a 38 hour week, and are entitled to annual leave and sick leave. Part-time employees receive the same entitlements on a pro rata basis.

All employees are entitled to the superannuation guarantee. Both Mary and Peter have requested that additional superannuation be deducted from their pays.

Jack is part-time, usually working 3 days per week. Because of the need to attend weddings and  other special events on site, Mary and Jack are entitled to a range of allowances and overtime.

Peter receives a monthly bonus.
Payroll must be verified by David Harrison and approved for distribution after the payroll clerk has prepared the fortnightly payroll.

Entitlements
All full-time employees are entitled to:
– 4 weeks annual leave;
–           10 days sick leave; and

Allowances
All employees are to be paid Car Allowance for using their own vehicles to provide their photographic services at weddings and other events. The allowance is a Wage Category and is the same amount for all employees: 50c per km. the allowance is not taxable as the allowance covers less than 5000kms p.a.

Meal Allowances are paid to Ricoh and Olympus. This allowance is not taxable and is paid when Ricoh and Olympus are working overtime. The allowance is $7.50 per meal, which is under the ATO maximum allowable amount.

Ricoh and Olympus receive a Tool Allowance. This allowance is taxable and is $15 per fortnight for Ricoh and $10 per fortnight for Olympus.

Privacy Policy
Harrison Photo handles all personal information in accordance with the Privacy Act and the National Privacy Principles. A full text of the NPP can be viewed online at http://www.oaic.gov.au/.

Record Keeping Policy
– To ensure only authorised personnel gain access to Harrison Photo's payroll, the company password protects all electronic files containing payroll information.
– At regular intervals all electronic payroll data must be backed up to an external medium.
– At the end of each month all hard copies of payroll records and reports are to be locked within the secure payroll department.
Payroll Clerk Duties
As the payroll clerk for Harrison Photo your duties include:
– Check payroll data with David Harrison and clarify any discrepancies.
– Handle payroll enquiries.
– Record and prepare pays for pay period.
– Obtain authorisation for payment and distribution of pays from David Harrison.
– Reconcile wages for pay period.
– Print hard copy of fortnightly payroll reports.

Handling Payroll Enquiries
The payroll clerk is often responsible for responding to enquiries from employees and regulatory bodies. When handling enquiries it is important to consider all relevant legislative requirements, including privacy requirements.
Common payroll enquiries:
1.         Employee enquiries:
– Payslip enquiries
– Entitlements
– Employment forms
2.         Enquiries from CFO/Accounts Staff
– Cash requirements
– Expense data
– Accruals and liabilities
3.         Enquiries from persons/agencies outside the company such as:
– Australian Taxation Office
– Centrelink
– Health insurance providers
– Unions
In accordance with the Privacy Act, the payroll clerk is only entitled to view and use information as necessary to process payroll. The clerk can access and provide to an employee only their own payroll information. In most circumstances it is not permitted to provide an employee with another employee's payroll information.

Full details of the employee pays and entitlements for Harrison Photo

Last name Olympus Canon Ricoh
First name Jack Peter Mary
Employee ID O333 C123 L453
Address 16 Reflex Rd

Snapville NSW 2560

54 Digital St

Snapville NSW 2560

25 Shot St

Snapville NSW 2560

Phone 02 9876 4795 02 9846 9751 02 9664 5845
DOB 4/09/1990 9/04/1968 2/09/1982
Gender Male Male Female
Start Date 6/12/2011 1/5/2008 25/01/2009
Wage Categories Base hourly Holiday Pay HL Loading Sick Pay   Overtime

Tool Allowance Meal   Allowance Car Allowance

Base Salary Bonus Holiday Pay HL Loading   Sick Pay

Car Allowance

Base hourly Holiday Pay HL Loading Sick Pay   Overtime

Tool Allowance Meal   Allowance Car Allowance

Super Fund Spectrum Super Sun Super Sun Super
Employee Member # 789 123 456
HL – Carry over   45 hours 70 hours
SL – Carry over   20 hours 24 hours
TFN 777 555 333 555 666 999 111 555 999
Tax table No tax free threshold Tax free threshold + HELP Tax free threshold
Tax Rebates p.a.   $1,250  
Extra    tax     per pay     $40
Tool Allowance $10   $15
Health Insurance   $52 $48
Union Fees $8   $10
Employee Additional Super   $100 $30
Payment method Electronic Electronic Electronic
Bank      Account   details BSB 111-444

A/C 499885

JACK OLYMPUS WAGES

BSB 111-555

A/C 454545

PETER CANON SALARY

BSB 111-888

A/C 466552

MARY RICOH WAGES

Year to date pay history Base hourly Holiday Pay Sick Pay   Overtime1.5 x Overtime 2x Tool Allowance Meal Allowance Car Allowance Union   Fees PAYG Withheld HL Accrual PT SL Accrual PT

Super Guarantee

20,900

nil nil 825

860

250

90

600

200

6,720

44 hrs

22 hrs

1,880

Base Salary Bonus Holiday Pay HL Loading   Sick Pay

Car Allowance Health Insurance PAYG   Withheld HL Accrual FT SL Accrual FT Super   Guarantee Employee additional

53,078

2,200

1,153

202

1,153

1,652

2,496

17,000

102 hrs

38 hrs

4,985

4,800

Base hourly Holiday Pay Sick Pay Overtime1.5 x   Overtime 2x Tool Allowance Meal Allowance Car Allowance

Health Insurance Union   Fees PAYG Withheld HL Accrual PT SL Accrual PT Super Guarantee Employee additional

51,068

nil nil 2,100

2,240

720

300

1,300

2,304

480

18,838

140 hrs

70 hrs

4,596

1,440

Procedures
Using the payroll information provided for Harrison Photo you are required to process the payroll for the months of June.

1.         Open the company file, Harrison Photo.myo

2.         Edit or Create the Payroll Categories according to the details provided.

3.         Create Employees cards for each employee.

4.         From the timesheets below, process the pays for all employees:

a.   Fortnight ending 14/06/2016 (paid 15/06/2016)

  Mary Jack Peter
Ordinary hours 76 hours 45.6 hours Salary
Overtime 1.5x 3   hours 2   hours n/a
Overtime 2x 1 hour 0 n/a
Car Allowance 50   kms 100   kms 200   kms
Meal Allowance 1 1 n/a
Annual Leave + LL 0 0 0
Sick Leave 0 0 0
Bonus n/a n/a 0

b.   Fortnight ending 28/06/2016 (paid 29/06/2016)

  Mary Jack Peter
Ordinary hours 53.2 hours 38 hours Salary
Overtime 1.5x 3   hours 3   hours n/a
Overtime 2x 4 hours 3 hours n/a
Car Allowance 50 kms 130 kms 200 kms
Meal Allowance 2 2 n/a
Annual Leave + LL 2 days 0 Requests 4 weeks AL Paid in   advance
Sick Leave 1 day 1 day 0
Bonus n/a n/a 200 (June) +

200 (July)

5.         Print the following reports for the month of June:
a.          Cash Disbursements Journal
b.         Payroll advice
c.          Entitlements Balance [Summary]

6.         Reconcile the PAYG Withholding.
a.          Compare the PAYG Withholding Payable in the Balance Sheet to the total Taxes on the Payroll Activity Summary.

7.         Prepare payments for the following employee liabilities as at 30 June 2016.
a.          Health Insurance -MQF Health Fund
b.         Union Fees – Photographers Union
c.          Superannuation – Sun Super/ Spectrum Super
d.         PAYG Withholding – ATO

8.         Print the following reports for financial year ended 30 June 2016:
a.          Payroll Summary
b.         Payroll Register [Summary]
c.          Payroll Activity [Summary]
d.         Profit and Loss
e.          Balance Sheet

9.         From your reports, answer the following employee enquiries:
a.          Mary needs to go to hospital for an operation and would like to know how many days sick  leave and annual leave in total are owing to her.

b.         Peter would like to know how much superannuation will be paid into his super fund for the  June 2016 quarter.

c.          David Harrison (CFO) is preparing a cash budget and has requested the total PAYG Withheld for the financial year 2015/16.

10.       Complete reconciliation of payroll on the checklist provided.

11.       Prepare and print the Payment Summaries for the 30 June 2012 financial year for each employee. Additional information required:

Mandatory Contact Name: David Harrison
Mandatory   Phone: 02   9344 4420
Re-enter   mandatory ABN: 53   086 760 303

3

12.       Create a backup of your data file using the name Harrison Photo 2016 EOY[your Student ID].zip

13.       Roll over the payroll into the 2017 financial year.

To be deemed competent you will need to successfully demonstrate the following:
You must complete and successfully answer all questions.
You must submit the following reports:
– Cash Disbursements Journal for the month of June
– Payroll advice for the month of June
– Entitlements Balance [Summary] for the month of June
– Payroll Summary for financial year ended 30 June 2016
– Payroll Register [Summary] for financial year ended 30 June 2016
– Payroll Activity [Summary] for financial year ended 30 June 2016
– Profit and Loss for financial year ended 30 June 2016
– Balance sheet as at 30 June 2016
– Payment Summaries for the 30 June 2016 financial year for each employee.

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