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FNSTPB402 – Establish and maintain payroll systems (using Xero)

FNSTPB402 Establish and maintain payroll systemsAssignment (using Xero)

Instructions:

1. Please complete the Declaration of Authenticity at the bottom of this page

2. To complete the assignment, read the instructions for each question carefully.

3. You may be required to refer to your learning materials or other sources to complete this

assessment.

4. You are required to type all your responses in the spaces provided

5. Once you have completed all parts of the assignment and saved it, login to the Monarch

Institute LMS to submit your assignment for grading

6. To submit your assignment click on the file ”Submit FNSTPB402 payroll assignment (using

XERO)” in the LMS module of your course and upload your assignment file and

accompanying documents.

7. Please be sure to click “Continue” after clicking “submit”. This ensures your assessor receives

notification of your submission – very important!

Declaration of Understanding and Authenticity *

I have read and understood the assessment instructions provided to me in the Learning Management System. I am aware of where to find the assessor’s feedback for the assessment. I am aware of the appeals process, should the need arise. I also understand I must be assessed as ‘satisfactory’ in all parts of the assessment to gain an overall satisfactory result for this unit of competency. I understand a person found responsible for academic misconduct will be subject to disciplinary action (refer to Student Information Guide).

I certify that the attached material is my original work. No other person’s work has been used without due acknowledgement. I understand that the work submitted may be reproduced and/or communicated for the purpose of detecting plagiarism.

Student Name*: Date:

* I understand that by typing my name or inserting a digital signature into this box that I agree and am bound by the above student declaration.

FNSTPB402 Establish and maintain payroll systems – Assignment w Xero (Rev 2019) 190701 of 39


Important assessment information Aims of this assessment

This assessment focuses on the skills and knowledge required to record and prepare payroll documentation, respond

to enquiries and process accurate payroll data for manual and computerised systems.

Marking and feedback

This assessment contains [number] [(figure)] assessment activities, each containing specific instructions. You must answer every question/complete each task within each activity. This particular assessment forms part of your overall assessment for the following units of competency:

FNSTPB402 Establish and maintain payroll systems (MPA001)

Grading for this assessment will be deemed ‘satisfactory’ or ‘not satisfactory’ in line with competency-based principles.

What does ‘satisfactory’ mean?

These answers contain sufficient evidence in response to the question/s with limited serious errors in fact or application. If incorrect information is contained in an answer, it must be fundamentally outweighed by the display of competence. This will be assessed against a marking guide provided to assessors for their determination.

What does ‘not satisfactory’ mean?

This occurs when an assessment does not contain sufficient evidence of applied knowledge and skill. These answers may not address the question specifically, or are incorrectly applied. Answers that omit to provide a response to any significant issue (where multiple issues must be addressed in a question) may also be deemed not satisfactory. Answers that have faulty reasoning, a poor standard of expression or include plagiarism may also be deemed not satisfactory. Please note, additional information regarding Monarch’s plagiarism policy is contained in the Student Information Guide which can be found here: http://www.monarch.edu.au/student-info/

What happens if you are deemed not satisfactory?

Re-assessment

As soon as practicable after you have been informed of the requirement to be re-assessed, you will be given one more opportunity to re-submit the assessment. Before you make your second attempt, you will need to consult with your trainer/ assessor and revise the training.

You are re-assessed in only the areas assessed as not satisfactory. It is at the assessor/s discretion to re-assess the entire assessment should it be demonstrated an overall understanding of this unit has not been achieved.

You will know your assessment is deemed not satisfactory if your grade book in the Monarch LMS says ‘NS’ after you have received an email from your assessor advising your assessment has been graded.

Important: It is your responsibility to ensure your assessment resubmission addresses all areas deemed unsatisfactory by your assessor. Please note, if you are still unsuccessful in reaching a satisfactory standard after resubmitting your assessment, you will be required to repeat those units.


http://www.monarch.edu.au/student-info/

https://www.monarch.edu.au/wp-content/uploads/2015/10/Student-Information-Guide-1.pdf



In the event that you have concerns about the assessment decision then you can refer to our complaints and appeals process, also contained within the Student Information Guide.

When does ‘competence’ come in to it?

If you achieve a grade of satisfactory for ALL assessments for a unit of competency, you will be deemed competent in that unit.

How to answer written questions

After each question, there is a blank text box for you to start typing your answer in, as indicated below.

1. Here is a sample task instruction, asking you to enter text in the box below.Type your answer here…

2. What is the answer to this question?

You can type as much as you like. The blank line is not an indication of how much you should write. The box will expand with the amount of text you enter. If you are not sure how much to write, look at the question hints, criteria, and word count guide. Note – the word count is a GUIDE ONLY. It’s not a maximum or a minimum, just a clue based on the model answer written by the course developers.

For some tasks, you’ll be asked to copy and paste content in to the answer box. If in doubt, ask your trainer.

Role play video activities

Some of these activities are partly or completely made up of simulations where you’ll need to play the role of a broker interacting with a client or with colleagues. For these activities, you’ll need to:

Read the activity instructions carefully. Download the right script from the LMS. Find someone to act as your client or colleague. This doesn’t have to be someone who looks/sounds like the

fictional client or colleague; it can be your partner, friend, colleague, etc. Record a video file of the role play. If in doubt, look at the tips for video recordings on the LMS. Upload the video file of the role play when you submit the rest of the materials for this assessment. If in

doubt, look at the tips on video file uploads on the LMS.

For the role play, you’ll need to:

Have a quiet, private space where you can effectively record the video. This could be your spare room at home, an office at your workplace, or even a study room at your local library.

Be professionally dressed and well groomed – like you’re ready for a day on the job! Get your partner to read the client or colleague’s part/s. Respond appropriately to what they say and do. This includes:

o Answering their questionso Addressing their concernso Asking them questions to clarify their understanding




When you’re conducting the role play, don’t forget about:

Using appropriate body language and gestures, including eye contact Speaking professionally, and at the appropriate pace Using plain English that’s suitable for the client or colleague you’re dealing with Listening without interrupting (remember your active listening skills) Not ignoring the person if you need to look something up during the discussion

Good luck

Finally, good luck with your learning and assessments. Remember, your trainers are here to assist you

The following questions are based on the material in the textbook “Payroll Accounting” by Anne Collins & Greg Pazmandy, 8th Edition (January 2017) or 9th Edition (January 2018) or 10th Edition (January 2019).

and

The supplementary materials ‘Australian Privacy Principles Fact Sheet’ (available from your Monarch LMS)

and

The ‘Guide to Information Security’ as issued by the Australian Government; Office of the Australian Information Commissioner(available from your Monarch LMS).

Activity instructions to candidates

a. This is an open book assessment activity.

b. You are required to read this assessment and answer all questions that follow.

c. Please type your answers in the spaces provided.

d. Please ensure you have read “Important assessment information” at the front of this assessment

e. Estimated time for completion of this assessment activity: 4-5 hours


Assessment Activities

Short Answer and Worked Answer Questions

FNSTPB402 – Establish and maintain payroll systems


The following questions are based on the material in Chapter 1: The Payroll System

Q1.1: From the documents provided in the LMS and in your text, list the information provided to the payroll clerk from the following forms:

Tax File Number Declaration

An employee’s Tax File Number/Name/Date of Birth/Home Address/Residency/Do they want to claim the tax-free threshold/Do they have a Higher Education Loan Program or a Trade Support Loan. Do they want to claim the seniors and pensioners tax offset by reducing the amount withheld from payments made to them? Do they have a Financial Supplement Debt?

Withholding Declaration Name/Date of Birth/Tax File Number/Residency/Are they claiming tax-free threshold/Do they want to claim or vary their tax offset by reducing the amount withheld from payments made to them. Do they want to claim or vary the seniors and pensioners tax offset entitlement? Do they have a Higher Education Loan Program or Trade Support Loan? Do they have financial Supplement Debt?

Superannuation Standard Choice Form

Employees choice of Superannuation fund – Name/Address/Employee Identification number If applicable/Tax File Number/Fund ABN/Fund Name/Fund Address/Suburb/Town/State-Territory/Postcode/Fund Phone number/USI/Membership number

Q1.2: Go to the Fair Work website (www.fwc.gov.au) to locate the Modern Award: Banking, Finance and Insurance Award 2010 (tip: use the search box at the top right of the website) then answer the following:

a) What is the minimum annual salary for an adult Level 2 employee?

$44850.00

b) What percentage of the adult rate must an 18 year-old be paid at a minimum?

70 per cent

c) What is the first aid allowance paid to a full-time employee for performing first aid duties?

Where an employer is required by legislation to appoint an accredited first aid

officer(s) to perform first aid duties, such appointed employee(s) must be paid


http://www.fwc.gov.au/


1.84% of the standard rate

d) At what rate is overtime paid on a Sunday?

Double Time

e) List 2 record-keeping obligations for employee records (go https://www.fairwork.gov.au/how-we-

will-help/templates-and-guides/fact-sheets/rights-and-obligations/record-keeping-pay-slips#What-

are-the-record-keeping-obligations).

1. Be in a form that is readily accessible to a Fair Work Inspector

2. Be in legible form and in English

Q1.3: Part A: Describe what an Enterprise Agreement is, and, what actions must be taken before they

take effect?

An Enterprise Agreement is an agreement made at an enterprise level between employees and

employers which cover terms and conditions of employment.

Start Bargaining: Draft the terms of the agreement or choose a representative or Industrial Officer to

assist. All relevant employees need to be notified within 14 days that bargaining has begun by

providing a Notice of Employee Representational Rights – this lets the employees know that a

bargaining representative can represent them.

Draft the Terms: These should cover Hours of work/Classification structure/Penalty and overtime

rates/Allowances/Rates of Pay/Breaks/Deductions authorised by an employee/Name of the employer

and employee, the work that the employee will carry out and the work location. Other terms that

should be covered in the agreement is Consultation which covers the requirement to consult with

employees if there are any major workplace changes or changes to their ordinary hours of work.

Disputes – which if there is a dispute the procedure that the company has for settling disputes.

Flexibility – Which means to be able to make individual flexibility arrangements with an employee to

be able to vary the Agreement. Must have a Nominal expiry date which must be no more than four


https://www.fairwork.gov.au/how-we-will-help/templates-and-guides/fact-sheets/rights-and-obligations/record-keeping-pay-slips#What-are-the-record-keeping-obligations



http://awardviewer.fwo.gov.au/award/show/MA000019#P126_7767


years after the date of when the Agreement gets approved.

Vote on the Agreement: Need to notify employees of where and when a vote will be. Notify

employees of how they can vote. Provide employees with a copy of the Agreement. Provide

employees any other material the Agreement may reference. Make sure the terms of the Agreement

are explained to the employees.

Lodge the Agreement: If a majority of the employees vote in its favour to agree to the terms of the

Agreement – The employer needs to lodge the Agreement within 14 days with the Fair Work

Commission along with an Application for approval of and Enterprise Agreement. A statutory

Declaration from the employer to support an application for approval of an Enterprise Agreement. A

copy of the agreement signed by the employer and the employee representative. If the Fair Work

Commission is satisfied with the agreement a copy of the Member’s approval decision will be posted

on the Fair Work Commission website and the Agreement will come into effect seven days after

approval.

Q 1.3: Part B: Describe what a Modern Award is and the type of information they contain:

A Modern Award is one that applies to all employees covered by the National Workplace Relations system. Modern awards can be based on Industry or Occupation and will apply to employers and employees who do work that is covered by the Award. Terms and conditions that are covered in the award are governed by law. An award will only apply if the employee falls within that coverage and also if the classification type is appropriate for the employee.

A Modern Award would have types of information like Pay Rate/Hours of Work/Rosters/Breaks/Allowances/Penalty Rates/Overtime



Q 1.4: Vince Smith is about to open a new hamburger joint and intends to employee 3 staff. He has asked for your advice about the actions to be taken in order to employ staff.

Required: Complete the table below listing actions to be taken, or documents required, to meet regulatory and legislative requirements when employing staff.

Business registrations (2 responses required) 1. Register for an ABN Number

2. Register to be a PAYG Witholder

Two documents to be given to employees at the start of their employment (2 responses required)

1. Fair Work Information Statement

2. Letter of Offer covering wages, hours of work, and job classification

Two documents that the employee is to provide to the Business Owner (3 responses required)

1. Tax file Number Declaration

2. Withholding Declaration

3. Superannuation Standard Choice Form

4. Bank Account Details

What information would Vince need to obtain/check from the Fair Work website(3 responses required)

1. The correct Award to pay the employee

2. Decide on the person’s employment status

3. Know the correct rates to pay the employee

Q 1.5: There are 13 Australian Privacy Principles that apply to organisations and Australian Government Agencies. List the 13 privacy principles below.

1. Open and transparent management of personal information

2. Anonymity and pseudonymity

3. Collection of solicited personal information

4. Dealing with unsolicited personal information

5. Notification of the collection of personal information

6. Use or disclosure of personal information

7. Direct Marketing

8. Cross-border disclosure of personal information

9. Adoption, use or disclosure of government related identifiers

10. Quality of personal information

11. Security of personal information

12. Access to personal information



13. Correction of personal information

Q 1.6: You have received the Tax File Number (TFN) Declaration from a new employee. Read "Appendix A –

Information security obligations in the Privacy Act" contained in the "Guide to information security" (April 2013)".

Referring to the section 'Tax File Number Guidelines 2011', list the specific requirements to ensure the

ongoing security of the TFN personal information.

Businesses must ensure that access to TFN Information is restricted only to individuals who need to handle the TFN information which can be for taxation law, personal assistance law or superannuation law purposes. The business should also take reasonable steps to make sure the TFN information is securely destroyed or in some cases permanently de-identify this information where it is no longer required by law to be retained or if it is needed for a purpose under taxation law, personal assistance law or superannuation law. Staff need to be trained in who is able to collect or access TFN information. Staff need to be made aware of the prohibitions on the use and disclosure of the TFN information. Staff and Management to be made aware of the penalties or sanctions that can apply for not complying with he TFN Guidelines or applicable laws that relate to the handling of TFN’s.

Q 1.7: Go to the Fair Work Ombudsman website to access its Record-keeping page.

List five (5) General employment records that must be kept for each employee under either a manual or computerised payroll system:

1. Employers Name and Employee’s name

2. Employers ABN number

3. Employees Commencement Date



4. Employee’s job classification eg, are they full time, part time, or casual

5. Whether the employee is permanent or casual.




List three (3) Pay records that an employer must keep for each employee under either a manual or

computerised payroll system:

1. The rate of pay paid to the employee

2. The gross and net amounts paid and any deductions from the gross amount

3. Details of any incentive-based payment, bonus, loading, penalty rate or any other monetary

allowance or separate identifiable entitlement paid


List four (4) Hours of work records that an employer must keep for each employee under either a manual

or computerised payroll system:

1. Record of hours worked by the employee in the case of a casual or irregular part time

employee who has been guaranteed a pay rate set by reference to time worked.

2. A copy of a written agreement if the employer and employee have agreed to the employee

taking time off instead of being paid for overtime worked.

3. A copy of a written agreement if the employer and employee have agreed to an averaging of

the employees work hours

4. A record of the number of overtime hours worked each day or when the employee started

and finished working overtime hours but only if penalty rates or loading need to be paid for

overtime hours actually worked, this record would apply for any type of employee not

covered as a casual or irregular part time employee.




List two (2) Leave records that an employer must keep for each employee under either a manual or

computerised payroll system:

1. Leave that has been taken

2. The balance of the employee’s entitlement


List five (5) Superannuation contributions records that must be kept for each employee under either a manual or computerised payroll system:

1. Amount of the contributions made

2. Dates on when each contribution was made

3. The time period over which the contribution has been made

4. The name of any fund to which a contribution was made

5. The basis where the employer was liable to make the superannuation contribution, including the record of any election made by the employee which would include the date to have their superannuation contributions paid into their nominated superannuation fund.

Q 1.12: Go to Workplace OHS website https://workplaceohs.com.au/legislation/record-keeping/victoria's%20record%20keeping%20requirements#4 and describe what WHS issue sec 38 OHSA relates to.

WHS Issue sec 38 OHSA relates to: A employer or a self- employed person is required to notify Worksafe of an incident and is required to keep a copy of the incident for at least 5 years.


https://workplaceohs.com.au/legislation/record-keeping/victoria's%20record%20keeping%20requirements#4

https://workplaceohs.com.au/legislation/record-keeping/victoria's%20record%20keeping%20requirements#4


The following questions are based on the material in Chapter 2: Payroll Calculations

Q 2.1: Calculate the gross wages for the employees of Bakers Emporium. The normal hours for each

employee is 38 per week. Employees paid an hourly rate are entitled to time and a half overtime for the

first 3 hours of overtime per week, thereafter they are paid double time. All Meal Allowances are

reasonable award overtime meal allowances and are not taxable.

a) Penny Lane worked 38 hours plus 7 hours of overtime. Her hourly rate is $16.50 and she is entitled

to 2 meal allowances of $12.00 each.

b) Bill Marley worked normal hours plus 2 hours of overtime. His hourly rate is $21.30 and he is

entitled to 1 meal allowance of $12.00

c) Donna Parton is on a salary package of $82,000 per annum. She worked 40 hours this week.

d) Casey Sunshine is paid 2 weeks of annual leave in advance as well as his weekly wage. He worked

42 hours this week and his award rate is $20.00 per hour. Sunshine is entitled to 1 meal allowance

of $12. He is also entitled to holiday leave loading of 17.5%.

REQUIRED: Record all of your calculations of the gross wage for each employee in the table below:

Normal time Overtime Annual Leave & Leave Loading Allowance Gross Wagea) Lane

b) Marley

c) Parton

d) Sunshine



Q 2.2: Kirsty’s Kitchens is a retail store. Employees are paid as follows:

(i) Time and a half for hours worked in excess of 7 hours on week days and the first 4 hours worked on Saturday;

(ii) Double time is paid for hours worked in excess of 4 hours on Saturday and for all hours worked on Sunday;

(iii) There are no penalty wages – only Ordinary Time Earnings (OTE) and overtime;

(iv) Assume that the hours worked (in the table below) are for the first week of a new month. Do not assume that further OTE will be worked by these employees this month.

The PAYG withholding income tax rate to be used for all employees is assumed to be 30%.

Employer superannuation contributions are in addition to the hourly rate of pay.

Round all tax calculations to the nearest 5c. Superannuation is to be rounded to the nearest cent.

Employees Hours worked Rate per hour

Mon Tues Wed Thurs Fri Sat Sun $

H Hicks 7 7 7 7 7 21.50

J James 7 7 7 8 5 12.60

L Lawson 7 7 8 7 7 16.50

M Murray 7 7 5 11.25

N Nixon 7 10 7 7 5 9.00

Required:

a. Calculate the amount of employer superannuation contributions for each employee. b. Calculate the net pay for each employee.

Please read the text book carefully in regard to when compulsory employer superannuation contributions will be payable. Note that the employee is eligible for super guarantee when they receive $450 or more (before tax) in salary or wages in a calendar month. For more details on employee eligibility for super guarantee purposes, please refer to the following ATO link:

https://www.ato.gov.au/Business/Super-for-employers/Working-out-if-you-have-to-pay-super/

Also please note that 9.5% rate should be used when calculating employer superannuation contributions.

This payroll is for the first week of the month.


https://www.ato.gov.au/Business/Super-for-employers/Working-out-if-you-have-to-pay-super/


OTE ($) Overtime ($) Gross pay ($) Net pay ($) Employer Super Contributions ($)

H Hicks

J James

L Lawson

M Murray

N Nixon



Q 2.3: Below are the records for Tim’s Tables. You are required to complete the worksheets below in order to calculate the (a) gross wages and (b) the net wages & superannuation for each employee. (Note that gross wages do not include compulsory employer superannuation contributions.)

Assume that the hours worked (in the table below) are for the first week of a new month.

* Be aware that the PAYG withholding amounts we have used below are for simplification purposes and are not derived from the ATO’s tax tables.

Employees Hourly rate Hours worked PAYG withholding tax *

Employee

Superannuation

contributions

Medical expenses/union fees

Ordinary Overtime

1.5 2.0

A Ables

$

36.50 35 4

$

392.00

$

115.00

.

$

25

B Bradman 16.50 20 82.50 29.50 25

C Charlesworth 24.00 35 4 3 282.00 15

D Dingley 30.00 35 7 341.50 15

E Ellington 26.00 35 2 253.50 82.00 20

a. Gross wages

Payroll records of Tim Tables

Employees Hourly rate

$

Hours worked Ordinary wages

$

Overtime Gross wages

$

Ordinary Overtime 1.5

$

2.0

$1.5 2.0

A Ables

B Bradman

C Charlesworth

D Dingley

E Ellington



b. Net wages and superannuation

Please read the Chapter 4.2 “Superannuation Guarantee”.Note: 9.5% should be used when calculating employer superannuation contributions.

Payroll records of Tim Tables

Employees

Gross wages

$

Deductions

Net wages

$

Employer’s

superannuation

contributions

$

PAYG withholding

tax *

$

Employee

superannuation

contributions

$

Medical expenses /

Union fees

$

Total

Deductions

$

A Ables

B Bradman

C Charlesworth

D Dingley

E Ellington

Total

a. Under certain circumstances, the ATO requires employers to pay employment termination

payments (ETPs). Briefly explain what is an ETP what is included in it.

Tip: Refer chapter 4 of your textbook.

b. Before any funds are paid, you need to present the payroll report for verification and approval.

Name any two (2) people’s role in the organisation who are likely to be authorised to review and

approve the payroll (i.e. provide likely position titles).



Q 2.4: Michelle earns $1,190 per week. She claims the tax-free threshold, has provided her Tax File Number and is

entitled to holiday leave loading of 17.5%. She also claims tax offsets of $820 per annum. This pay period, Michelle

will be paid a normal week’s pay plus 2 weeks annual leave in advance.

Required: complete a & b below:

a) How much is Michelle’s gross annual leave holiday pay and leave loading for one week? Record your

calculation & answer below:

b) Using the Tax Tables in your text, how much PAYG tax is withheld on one week of annual leave? Please record the Financial Year of the Tax Tables provided in your textbook.

PAYG Tax withheld:

Specify financial year of Tax Tables:



The following questions are based on the material in Chapter 3: Processing Payroll

Q3.1: The gross payroll of Plentiful Industries for the week ended 14th June was $16,000 with the deductions being PAYG Withholding tax of $3,100 and health insurance of $800. All wages are paid in cash.

REQUIRED: Prepare the general journal entries to record the payroll, and, the payment of net wages for the week ended 14th June.

General Journal

Date Particulars Debit Credit

GO TO NEXT PAGE FOR QUESTION 3.2



Q3.2: The following is the payroll register for Kentucky Specialists for the pay week ending 10th March. Both of the

employees are paid wages by cheque.

Kentucky SpecialistsName Hours Earnings $ Gross Pay $ Deductions $ Net pay $

ORD 1.5 2 ORD 1.5 2 - PAYG Health Union Total

Eddie 38 3 2 760 90 80 930 158 40 10 208 722

Lee 38 4 8 760 120 320 1200 252 40 10 302 898

TOTAL 2130 410 80 20 510 1620

REQUIRED:

a) Complete the General Journal entry to record the payroll for 10th March (ignore any superannuation):

General Journal


b) Complete the General Journal entry to record the separate payments of the net wages for each of Eddie and

Lee:

General Journal




Q 3.3: Wright Communications have supplied the following payroll information - the compulsory super

details have not been provided and will not be included in this exercise. The deductions include personal

contributions to employees’ superannuation funds. Net wages are paid electronically by direct deposit batch

to the employees’ bank accounts. All deductions are paid by cheque on 30 September.

Particulars Fortnight ending 11th September

Fortnight ending 25th September

Net wages paid $28,488 $27,382

PAYG withheld 5,942 6,024

Superannuation (personal contributions) 3,099 3,007

Medibank Private Health Insurance 550 510

a) Complete the General Journal Entry to record the fortnightly pay for 11th September:

General Journal


b) Complete the General Journal entry for the electronic direct deposit batch of wages paid 11th September:

General Journal




c) Complete the General Journal to record the fortnightly pay for 25th September:

General Journal


d) Complete the General Journal entry for the electronic direct deposit batch of wages paid 25th September:

General Journal


e) Complete the General Journal entries for all of the Deductions:

General Journal




The following questions are based on the material in Chapter 4: Entitlements & Reporting

Q 4.1: Future Fabrics have supplied the following payroll details to you as a BAS Agent for the week ended

6th April. Compulsory Superannuation accrues at a rate of 9.5% of ordinary time earnings on or over $450

per month.

Employee Hours Worked Deductions

Name Normal Overtime Rate p/hr PAYG Other

A Apple 35 3 at 1.5 $20 $110 Health Fund $40

B Nana 35 2 at 1.5 $19 $86 Union $15

C Able 35 0 $21 $90 Health Fund $40Union $15

D Date 35 3 at 1.5+ 2 at double

$21 $152 Union $15

REQUIRED:

( a ) Payroll register for the Week Ended 6th April

HOURS EARNINGS DEDUCTIONS NET PAY

Name Rate Ord Times 1.5

Times 2 Ordinary 1.5X 2X Gross Pay PAYG Health Ins.

Union Total Ded’ns

$

Apple $20.00

Nana $19.00

Able $21.00

Date $21.00

Total

a) Prepare the payroll register using the PAYG withholding amounts provided.

b) Prepare a General Journal entry to record the payroll and the superannuation guarantee liability:



General Journal


c) Prepare a General Journal entry for the transfer of net wages by Direct Deposit batch

General Journal


d) Is Future Fabrics required to deduct specific separate amounts (separate to the PAYGW) for

Medicare Levy from its employees’ wages? Explain why or why not.

e) For which 3 of the following activities would a BAS agent seek independent expert advice?



(Hint: go to ICB website https://www.icb.org.au/who-are-you/students/essential-information-for-students)

ascertaining liabilities, obligations or entitlements of an entity that arise, or could arise, under a BAS provision establishment of a Self-Managed Superannuation Fund structure advising an entity about liabilities, obligations or entitlements of the entity or another entity that arise, or could

arise, under a BAS provision completion of forms to determine GST amounts collected or paid completion of forms to determine Wine Equalisation Tax (WET) payable of refundable determination of Fuel Tax Credit amounts lodging of Income Tax returns advising whether it is best to pay off a mortgage versus using those funds for investment

f) What are the education and experience requirements to become a BAS agent? (Hint: Look at https://www.tpb.gov.au/qualifications-and-experience-bas-agents)


https://www.tpb.gov.au/qualifications-and-experience-bas-agents

https://www.icb.org.au/who-are-you/students/essential-information-for-students

https://www.icb.org.au/who-are-you/students/essential-information-for-students


Q 4.2: Tree Line Adventures have 4 employees. In accordance with the Fairwork Act, the normal hours for full-time employees are 38 hours per week and they are entitled to 4 weeks annual leave each year and in accordance with National Employment Standards 2 weeks personal leave. Part-time staff receive pro rata annual leave and personal leave.

REQUIRED:

a) Prepare the employee records by calculating annual leave and personal leave entitlements for the

week.

Name Full-time/part-time Hours worked Annual LeaveAccrued (hours)

Personal Leaveaccrued (hours)

Lara Full-time 38

Kate Full-time 38

Joe Part-time 10

Brett Part-time 15

b) What does the Paid Parental Leave Act 2010 relate to? Do employers pay this via their employee

payroll? Hint: Read chapter 4 of your payroll textbook or search the internet.

c) Briefly describe what long service leave relates to and name one specific Act from a state or territory.

Tip: Look at https://www.fairwork.gov.au/leave/long-service-leave

d) The Australian Bureau of Statistics (ABS) collects data about the remuneration paid to employees from

both social and economic perspectives. Provide an example of how this type of data could be useful from a

social perspective. (Note: there is no specific correct answer to this question – it is your opinion).


https://www.fairwork.gov.au/leave/long-service-leave


Q 4.3: Chopper Aviation have provided the following information for the quarter ending 31st March.

i. Gross Salaries and Wages including PAYG Withheld = $170,960ii. Car Allowances (assume: this is the gross amount and it is not subject to PAYG withholding; it has

not been included in Gross Salaries & Wages above) = $3,566iii. Bonuses paid grossed $4,000; tax on bonuses $920 (both amounts not included above)iv. PAYG Withheld from salaries and wages = $42,781v. Contractor invoices subject to voluntary withholding agreement totalling $15,000; tax withheld at

20%vi. $901 invoice subject to 47% withholding as the supplier does not hold an ABN.

REQUIRED: a) complete the PAYG tax withheld panel of the Business Activity Statement:

PAYG tax withheld

Total salary, wages and other payments W1 $

Amounts withheld from payments shown at W1 W2 $

Amounts withheld where no ABN is quoted W4 $

Other amounts withheld (excluding any amount shown at W2 or W4) W3 $

Total amounts withheld(W2 + W4 + W3) W5 $



REQUIRED: b) complete the Summary panel extract on the Business Activity Statement:

Note: Chopper Aviation are not registered for Fringe Benefit tax and not currently paying PAYG Instalments.

Summary

Amounts you owe the Tax Office

PAYG tax withheld 4

PAYG income tax instalment 5A

FBT instalment 6A

Deferred company instalment 7

1A + 4 + 5A + 7 8A

Amounts the Tax Office owes you

Credit from PAYG instalment variation 5B

Credit from FBT instalment variation 6B

1B + 5B + 6B 8B

Payment or refund

Is 8A more than 8B?

Yes 8A - 8B is payable No 8B - 8A is refundable

Your payment or refund amount

REQUIRED: c) If Chopper Aviation is advised they need to make Pay As You Go Instalments (PAYGI),

briefly explain what these are and when these PAYGI would need to be made.

Tip: Review this site https://www.ato.gov.au/General/PAYG-instalments/


https://www.ato.gov.au/General/PAYG-instalments/


REQUIRED: d) If Chopper Aviation were to provide fringe benefits to its employees list two (2) legal obligations it

would need to adhere to.

Tip: Review this site https://www.business.gov.au/finance/taxation/fringe-benefits-tax

REQUIRED: e) Think about establishing a back-up and disaster recovery system for your payroll software

system.

Using XERO payroll, explain why having the file online (in the cloud) could help protect your data from

disaster.


https://www.business.gov.au/finance/taxation/fringe-benefits-tax


Q5: The following questions are based on the material in Payroll Accounting, using XERO

With the workbook you have completed the online tasks for Your Name Pty Ltd (for example, if your name

is Lisa Smith, the file name will be Lisa Smith Pty Ltd). Login to Xero to generate the following documents in

PDF format and save each of these files to your hard drive:

1. Employee Remuneration (all)

2. Leave Requests (this financial year)

3. Pay slips for Kylie & Joe for the fortnight ending 14th of the current month

4. Pay Run Journal for Kylie & Joe for the fortnight ending 28th of the current month

5. Payroll Activity Details (All) for the current month

6. Payroll Activity Summary for the current financial year

7. Bank Payments report for the Sales team pay run for the week ending 21st of this month

8. Pay Run Journal for this month’s pay run for John & Tiffany

9. Payroll Employee Summary for the current month for John & Tiffany

10. Superannuation Accruals report for this month filtered by Employees

11. PAYG Payment Summaries for the financial year ending 30th June: Kylie Caruso, Joe Zivkov, John

Aitken, Tiffany Nguyen, Jack Tapp, Louise Bond and Mary Eden (7 staff)

12. General Ledger Summary for the current financial year

13. Balance Sheet as at the end of the current month

14. Profit & Loss report for the current financial year

REQUIRED: The 14 PDF documents that you have downloaded and saved are to be merged into one PDF

document for uploading to LMS together with your assignment submission. Follow the instructions on

the next page:

1. Go to www.ilovepdf.com

2. Click on Merge PDF


http://www.ilovepdf.com/


3. Click on the Select PDF files button to locate the five PDF files from your hard drive

Continue clicking on ‘Select PDF files’ until you have added all five PDF documents to be merged.

4. Click on the Merge PDF button

5. When the following message appears, click on the Download merged PDF button. This will

automatically download the document for saving to your hard drive.

6. Save the document to your hard drive with the file name ‘Your Name Pty Ltd – Xero payroll’

(i.e. if your name is Lisa Smith, the file name is to be called ‘Lisa Smith Pty Ltd – Xero payroll’)

NOTE: You will only be uploading one Merged PDF file for ‘Your Name Pty Ltd – Xero payroll’ to LMS.



Q 6: Video role play taskYou are the Payroll Officer and you need to provide some information to Sally, one of the employees of

your firm who has come into your office to discuss her leave.

Specifically, during your conversation with Sally, you will need to address the following queries that she

has:

a. How are pay advice notices distributed to employees? (Suggest 2 ways in which these notices could

be distributed).

b. According to legislative requirements for the distribution of pay advice notices to employees, what

is the maximum time limit allowed to distribute these notices to employees?

(Hint: access this link https://www.fairwork.gov.au/how-we-will-help/templates-and-guides/fact-

sheets/rights-and-obligations/record-keeping-pay-slips#What-are-the-record-keeping-obligations )

c. Are there any legislative considerations regarding the handling of confidential information?

d. Sally, a full time office employee who works 38 hours per week, is paid on hourly basis and has an

entitlement to 4 weeks annual leave as specified under the National Employment Standards. Sally

wants to know how her accumulated annual leave, shown on the payslip, has been calculated.

Specifically she wants to know:

- how annual leave accumulation calculation works

- how the number of annual leave hours on her pay slip has been calculated

(Hint: refer to chapter 4 of your payroll textbook)

e. How do you obtain resolution about employee enquiries to that are outside your area of

responsibility or knowledge? E.g. Sally wants to know what happens if she needs to take additional

leave for a holiday at a certain time, and doesn’t have enough annual leave to cover it.





Instructions:

Read the role play script (below) titled ‘Leave Enquiries’.

You will need a partner for this exercise, to read/play the part of Sally (the employee) and Mary (your

supervisor). Give them the role play script.

Video record your meeting with Sally and Mary. Use the same video recording process you’ve followed

for previous assessments. You may wish to refer back to the video recording instructions on the LMS.

Upload the meeting video when you upload this assignment document.

Criteria:

For this task, you’re being assessed on your ability to:- Address Sally’s queries.- Explain Sally’s query regarding her additional leave clearly to Mary- Find out from Mary what you should tell Sally- Ask questions to clarify details of what Mary tells you- Use clear and direct language- Use your active listening skills- Speak with appropriate language, tone and pace, considering the professional context


Unit Covered: FNSTPB402

Role Play Script - Leave Enquiry

General instructions:

• There is no requirement for the other person(s) to be visible in the video, so if your partner(s) would prefer not to be visible, that’s OK.

• The student must be visible throughout the video.

• All persons must be audible throughout the recording.

• Using a camera phone is often a quick and easy way to record the video.

Instructions:

Remember what you’re being assessed on: your communication skills, as outlined in the criteria (above).

The parts are indicated with names in brackets, like this: [YOU] [MARY]

When something is written in bold, it’s just a guide – not a line you have to read word-for-word.

There’s often no script for what you need to say; just guidelines. That’s part of the challenge! Don’t read these lines out. Instead, answer in a way that fulfils the guidelines. For example, if the guideline for you were:

[YOU]: Name and describe a fruit. Say something good and something bad about the fruit.

…you might say “Apples. They’re red, juicy, and crunchy. They’re high in fibre, but you can’t eat the core.”

Normal speech is written as follows. Read these parts out.[MARY]: Let’s get this meeting started.

Instructions for actions or body language are written in italics as follows. Don’t read these parts out.[FRED]: Look angry and raise your hand.

- - - - - - -



[YOU]: Greet Sally appropriately and professionally.

[SALLY]: As you know I have only been with this firm for 10 months and I have a few questions about my pay advice slips

and my leave.

[YOU]: Ask Sally what her queries are?

[SALLY]: I’m not sure that I have received all my pay advice notices. How are the pay

advice notices distributed to us?

[YOU]: Suggest 2 ways in which these notices could be distributed.

[SALLY]: Are there any legislative requirements that stipulate the maximum

time limit allowed for firms to distribute pay advice notices to employees?

[YOU]: Provide an answer to Sally – hint you can use this link https://www.fairwork.gov.au/how-we-

will-help/templates-and-guides/fact-sheets/rights-and-obligations/record-keeping-pay-slips#What-

are-the-record-keeping-obligations

[SALLY]: I’m concerned that my co-workers compare salaries in the team. Are

there any legislative requirements regarding the handling of confidential

information such as pay slips?

[YOU]: Provide a response to Sally

[SALLY]: As you know, I’m a full time employee. I work 38 hours per week and

am paid on an hourly basis. I have an entitlement to 4 weeks annual leave. I

want to know how the accumulated annual leave, shown on my payslip, has been calculated. Specifically how is the annual leave accumulation calculation

worked out and how has the number of annual leave hours on my pay slip been

calculated?[YOU]: Provide a response to Sally






– Note: there is no need to have specific numbers – it is only required that you explain how annual leave accumulation calculation works, and how the number of annual leave hours on a pay slip are calculated. (Hint: refer to chapter 4 of your payroll textbook)

[SALLY]: What happens if I need to take additional leave for a holiday at a certain

time, and don’t have enough annual leave to cover it.

[YOU]: Explain to Sally that you will get back to her about his as you need to check this with Mary.

Assume you are now speaking with Mary.

[YOU]: Greet Mary appropriately and professionally.Thank her for her time.

[MARY]: You’re welcome! Now, what seems to be the issue here?

[YOU]: Explain Sally’s enquiry as briefly as possible.

[MARY]: I understand. It’s hard to plan these things sometimes. Sally has a couple of options according to our company policy. One, she can

use up the annual leave she does have, and take the rest of the time as unpaid leave. Two, she can

take leave in advance.

[YOU]: Ask Mary to explain ‘leave in advance’.

[MARY]: That basically means taking leave before you’ve accrued it. It’s something we do, to give people a bit of flexibility. But it’s also good for us; so far, it’s tended to

mean people don’t take leave all at the same time.

[YOU]: Ask Mary how Sally can action her choice of the two options.

[MARY]: Well if she wants to take leave in advance, she just needs to request the whole

time as annual leave.If she wants some of the time as annual leave and unpaid leave, she’s got to enter the unpaid leave

hours separately. If she chooses leave in advance, on her first pay slip after she gets back, her leave

balance will be displayed as negative hours.



Then the hours she accrues after that will gradually bring her balance back up to zero and

eventually into a positive balance.

[YOU]: Ask Mary if there’s anything else you have to do for this regarding payroll.

[MARY]: Nope, it’s pretty simple.I think the only time you need to make further

manual adjustments with leave, once you’ve set up an employee in the system, is when you pay out their annual leave entitlement that they’ve

accrued. Then, you may need to also do a manual tax adjustment. But that doesn’t sound like it’ll be

an issue here.

[YOU]: Thank Mary for her time.

[MARY]: No problem! Let me know if Sally has any more questions about her leave entitlements.

You can refer her to me.

After your meeting with Mary, you want to follow up promptly with Sally.

[YOU]: Greet Sally and explain what Mary has told you about her additional leave request..

[SALLY]: Thank you - that makes sense. I’ll let you know what I decide to do.

END OF ASSIGNMENT

All of the following documents must be uploaded to LMS for assessment:

1. This assignment document, ensuring that you have completed the Student Declaration (page 1)

2. “Your Name Pty Ltd – Xero payroll’ (one PDF document)

3. Video Recording file.


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