What is the purpose of establishing security procedures

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Reference no: EM132189723

Establish and maintain a payroll system

For this assessment you are required to answer all of the questions. You are permitted to research the answers by reading your text book, theory notes and accessing the internet. If more room is needed label each task with the question number and use headings or dot points to make your work clear for your trainer and assessor.

Please follow the Referencing Guide contained on your Course handbook.

1. What is the purpose of establishing security procedures in relation to managing payroll information? There are three aspects of this purpose.

2. Claims for allowances require substantiation documentation. Explain how substantiation procedures guarantee that an employee's claim for an allowance is substantiated?

3. Identify three (3) different records relating to managing payroll that an organisation is required to keep for employees and the minimum period that these records must be kept?

4. Payroll enquiries must be in accordance with organisational and legislative requirements. List at least five (5) possible queries employees and/or contractors might have regarding their pay?

5. List the key items that are required in order to calculate an employee's gross pay and where you would obtain the required information.

6. Identify two (2) statutory deductions that can apply to a wage or salary earner and provide a brief description of each including how the amount of each deduction would be calculated and determined.?

7. Describe your current job and provide two (2) allowable tax deductions that you could claim to reduce your overall taxable income. Justify the deductions.

8. Explain three (3) checks that an organisation can perform when reconciling payroll.

9. Explain three (3) advantages of a computerised payroll system.

Using a computerised payroll system can save you time. Accounting software allows faster data entry than manual accounting,
Computerised payroll system allows documents such as invoices, purchase orders and payroll to be collated and printed quickly and accurately.

10. Explain the purpose of a Tax File Number (TFN) declaration and the time lines for completion and lodgement with the Australian Taxation Office (ATO).

11. Log onto the Office of State Revenue Queensland website (https://www.payrolltax.gov.au/) and answer the following questions relating to payroll tax as a business.

i. What is payroll tax and when does a business need to register?
ii. What is the current payroll tax exemption yearly threshold?
iii. What is the current payroll tax rate?
iv. How often does a business have to lodge a return for payroll tax?
v. When is the return due after the end of the return period?
vi. Using the information you have just found on the website, calculate the payroll tax payable for a Queensland business that has a total payroll of $1 million.

12. Provide an explanation of the following terminology and also the importance of each in the management of a payroll system:

i. Fringe Benefits Tax (FBT)
ii. Higher Education Loan Program (HELP)
iii. Superannuation
iv. Pay As You Go Tax (PAYG)
v. Medicare Levy

13. For each of the following pieces of legislation or codes of practice describe why each is relevant to the management of a payroll system:

i. Anti -discrimination Laws
ii. Ethical principals
iii. Australian Accounting and Auditing Standards code of practice
iv. Superannuation Guarantee (Administration) Act
v. Privacy laws

14. List the steps you would take in MYOB to set up salary packaging.

15. Explain the National Employment Standards (NES) ten minimum workplace entitlements and where they are outlined.

Question 1:

From the following employee history cards, complete the payroll register for three staff from RJ SMITH INDUSTRIES in the three steps:

Name:	J Sullivan	L Johnson	J Tunney
Employee No:	27	28	29
Address:	22 Benowa Road Benowa QLD 4215	18 Burns Street Helensvale QLD 4212	19 Kelly Street Runaway Bay QLD 4216
Current wage rate:	$16 per hour	$22 per hour	$17 per hour
Tax file number provided:	Yes	Yes	Yes
Tax free threshold:	Yes	Yes	Yes
Leave loading:	Yes	Yes	Yes
Deduction (union fees):	$4 per week	$4 per week	$4 per week
Deduction (medical fund):	$20 per week	$35 per week	Nil

Extracts from the clock cards for the week ending 15 July 20xx

Name:	J Sullivan	L Johnson	J Tunney
Ordinary hours	40	40	40
Overtime hours	8	4	Nil

Overtime is paid at 1.5 times the ordinary rate:

The payroll register is prepared step by step. Please complete the following steps:

Step 1: Calculate the gross earnings of each employee:

J Sullivan	__ hours ordinary time	@	$__	=	$__
	__hours overtime	@	$__	=	$__
	Gross earnings			=	$__
L Johnson	__ hours ordinary time	@	$__	=	$__
	__hours overtime	@	$__	=	$__
	Gross earnings			=	$__
T Tunney	__ hours ordinary time	@	$__	=	$__
	__hours overtime	@	$__	=	$__
	Gross earnings			=	$__

Step 2: Calculate the tax to be withheld for each employee: (using the current weekly tax rates)

Name:	PAYG tax with tax free threshold (payable to ATO)
J Sullivan
L Johnson
T Tunney

Step 3: Complete the payroll register and total the columns

RJ SMITH INDUSTRIES

Employee

Name

Hours

Gross Earnings

Deductions

Net

Pay

Super

Ord

A/L

Other

Total

Tax

Union

Med

Total

J Sullivan

L Johnson

J Tunney

TOTALS

Step 4: Process employee payments in accordance with the policy and procedure outlined in Appendix A

Name:	J Sullivan	L Johnson	J Tunney
Employee No:	27	28	29
Account Name:	Mr J Sullivan	Ms K Beener and Mr L Johnson	Mr J and Mrs D Tunney
BSB:	062 456	084 896	306 001
Account Number:	698 874 02	324 125 85	459 9673
Date of direct transfer:
Amount paid:

Step 5: Assuming the three employees accumulate the same amount of superannuation guarantee every week, prepare a summary for payment of liabilities for the appropriate period.

Name:	J Sullivan	L Johnson	J Tunney
Accumulated period start date:	__/__/20xx	__/__/20xx	__/__/20xx
Accumulated period end date:	__/__/20xx	__/__/20xx	__/__/20xx
Payment cut off date:	__/__/20xx	__/__/20xx	__/__/20xx
Total amount payable to staff chosen super fund:	$__	$__	$__

Question 2:

Scenario - John uses his own utility (Volkswagen Transporter, registration IDX 812) for work and is able to claim the kilometres travelled as an allowable deduction. Details of his working week are:

Details	Odometer reading
Mon, 11^th July 20xx - worked on erecting frame on new house	33,345 to 33,375
Tues, 12^th July 20xx - erecting roof on house	33,412 to 33,442
Wed, 13^th July 20xx - worked on new kitchen cupboards in western suburbs	33,501 to 33,565
Thurs, 14^th July 20xx - cupboards at same house completed	33,610 to 33,669
Fri, 15^th July 20xx - repairs to offices in city	33,680 to 33,725

John has completed his logbook below for business travel. He has made three (3) errors. Find and correct the discrepancies.

Car make Volkswagen			Model Transporter			Registration number IDX 812
Date trip began	Date trip ended	Odometer at start	Odometer at finish	Business km	Purpose of trip		Name of driver	Signature
11/07/xx	11/07/xx	33,345	33,375	25	Framing		Brett	Brett
12/07/xx	12/07/xx	33,412	33,442	30	Roof		Brett	Brett
13/07/xx	13/07/xx	33,501	33,585	64	Cupboards		Brett	Brett
14/07/xx	14/07/xx	33,610	33,669	59	Cupboards		Brett	Brett
15/07/xx	15/07/xx	33,680	33,725	45	Cupboards		Brett	Brett

Question 3

Indicate yes or no for each of the following circumstances if BAS Agent registration is required.

Scenario

The services provided includedata entry, coding of transactions based on instructions provided, processing of payments, preparing bank reconciliations, and determining obligations or entitlements in relation to State or Territory payroll taxes.

Services which include dealing with the Commissioner on behalf of a taxpayer - for example, lodging statements, forms or other documents in respect of a BAS provision to the Australian Taxation Office (ATO) on behalf of a taxpayer.

The services are not provided for a fee or other reward.

Services which include advice and/or calculation of liabilities, obligations or entitlements under the pay as you go (PAYG) withholding and instalments system, under Parts 2-5 and 2-10 in Schedule 1 to the Taxation Administration Act 1953.

The services are provided to an organisation where the persons delivering the service would generally be considered to be in house employees. This includes arrangements where there may be a cost recovery and/or shared services arrangement in place for the provision of the services by entities regarded as in house service providers.

Assessment Project

Part C

i. Complete the payslip below for Mr Lucas Johnson (employee #28) only.

ii. Complete a TFN declaration form for the following new employee.
• TFN: 100 489 128
• Name: Ms Jennifer Brown
• DOB: 5/6/1988
• Address: 10 James St, Burleigh Q 4220
• Employment status: Casual

iii. Prepare the Payment Summary for the previous financial year for Mr Lucas Johnson (employee #28). Assume that Lucas worked the same shifts every week during the last financial year.

iv. Complete a Business Activity Statement (BAS) based on the following details:

Collected $15000 in GST (1A on the BAS)
Paid $9500 in GST (1B on the BAS)
Withheld $6500 in PAYG withholdings tax on staff wages (4 on the BAS)
PAYG Income Tax Instalments are $2300 (5A on the BAS)
Complete 8A and 8B then work out if you have a payment or refund

Attachment:- Asssessment.rar

Reference no: EM132189723

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