Reference no: EM132400949

FNSTPB402 Resolve Payroll Enquiries

Description:

Assuming your role as a Payroll Clerk at Bean's Coffee, complete the following tasks. For the purpose of this task, your trainer/assessor will play the role of your manager and provide the required information, instructions, and approvals/authorisations as per company's policies. General payroll terms are;
• A standard working week is 35 hours
• All overtime is paid at time and quarter
• All weekend work is paid at time and half
• All pays are paid electronically
• The superannuation guarantee rate is 9%
• Annual leave per year is 4 weeks
• Personal leave, including sick leave and carer's leave, per year is 10 days
• Long service leave accrues at 13 weeks for every 5 years worked

In addition, refer to company's "Finance Policy and Procedure Manual" for more information.

1) Roger Smith has just joined Bean's Coffee as a café worker this month. He is on a casual roster and sometimes works overtime. Roger's employment details are as follows;

Using the above information;

1. Complete the above timesheet
2. Calculate gross pay for week
3. Calculate PAYG withholding by using the current tax table
4. Calculate net pay
5. Find out the error made in calculating Roger's last week's pay
6. Show calculations as to how the amount paid to Roger could have been happened
7. Prepare a short report to present it to your manger (trainer/assessor role play) and obtain necessary approval for variance in payroll and authorising the additional payment to Roger

Roger has also enquired about his leave and superannuation entitlements. Further, prepare the following information to explain to Roger;
• Why he is not entitled for annual or sick leave (refer to appropriate legislation or regulation)
• Provide information on his superannuation entitlements and payment schedules according to legislative requirements

You have promised Roger to check and following up on his query within the next two (2) days. Within the designated period, prepare your calculations and answers on a word-processed sheet that you can give to Roger. You must report to your manager (trainer/assessor) and resolve the query within the designated period.

2) Samantha Riley works as a café manager for Bean's Coffee in their city branch. Samantha's employment details are as follows;

Company calculates annual entitlements according to the financial year.

Samantha wishes to go on an annual leave from 1 November 20xx and has asked to be paid in advance. Samantha also wants to know;

• What tax offsets her employee Roger Smith uses against his pay
• What would happen if she decides to leave her job on the last day of her holiday?
• How could she find out about her terms of employment contract?

Samantha leaves for holidays in three (3) days' time and has accordingly requested you to provide her with the above information within the next two (2) days. You must report to your manager (trainer/assessor) and resolve the query within the designated period.

Your task is to;

1. Calculate Samantha's PAYG for the period worked
2. Calculate gross holiday pay
3. Calculate leave loading (LL)
4. Calculate taxable leave loading
5. Calculate taxable holiday pay
6. Calculate the tax on one week's leave
7. Refer to the relevant tax tables (ato.gov.au) to find out the applicable tax amount for one week of holiday leave
8. Calculate the tax on all holiday pay
9. Calculate net holiday pay
10. Record the above pay in the general journal and cash payments journal (use the given templates)
11. Refer to company's "Finance Policy and Procedure Manual" and prepare answers to Samantha's queries (word-processed)

3) When completed, set up a payroll system using MYOB AccountRight (or an available ATO approved accounting software) in accordance with the modern awards and the relevant legislative requirements;

1. Consult your trainer/assessor (manager role-play) on the awards and conditions
2. Set up Roger and Samantha as two employees - and set award conditions as per the information provided
3. Generate payslips and payroll summaries

Assessment Task 2:

Prepare and Process Payroll

Description:

Role of a Payroll Officer/Clerk is typically to process employee pays, salaries and other associated employee conditions and benefits including the payment of superannuation and other legislative and award based payments.

As we have used Bean's Coffee as a business scenario throughout this course, you will continue your role play within the same scenario. The idea is to simulate an actual work environment.

Assume that the Accounts Manager has given you an added responsibility as a Payroll Clerk within the company and delegated payroll tasks to you.

Assuming the role of a Payroll Clerk working for Bean's Coffee, complete the following tasks in accordance with company's relevant policies and procedures as provided in the "Finance Policy and Procedure Manual" (Payroll Policy and Procedure and Privacy and Information Security Policy added). For the purpose of this task, your trainer/assessor will play the role of the Accounts Manager or the CEO depending on the nature of task. Ensure that you communicate and obtain necessary information, clarification, and approval as required.

This assessment task contains two parts. Read the following instructions and complete the tasks as required.

Part A: Payroll

You have been given the responsibility to prepare and process pay for the last payroll period (use the dates according to training/class schedule). Employee and pay/wage information is provided in a separate data file (Excel: FNSTPB402 Assessment Task1_Info).

General payroll terms are;

• A standard working week is 35 hours
• All overtime is paid at time and quarter
• All weekend work is paid at time and half
• All pays are paid electronically
• The superannuation guarantee rate is 9%
• Annual leave per year is 4 weeks
• Personal leave, including sick leave and carer's leave, per year is 10 days
• Long service leave accrues at 13 weeks for every 5 years worked

Using the given information;

a) Complete the time cards for all employees.

b) Complete the wage calculation cards for all employees for the current week.
c) Calculate holiday pay; use the last wage calculation card which includes net pay and holiday pay
d) Prepare the pay slips for Richard Hart and M. Webb only
e) Complete a cash analysis, cash docket and cheque to pay wages
f) Print and show your final payroll data to your manager (trainer/assessor role play)
g) Identify and rectify errors, if any. Make note of the errors Once you have processed all payroll data;
a) Complete the Cash Payment Journal
b) Process payroll expenses
c) Record transactions in journals and post to ledgers
d) Take a printout of General Ledge and reconcile payroll data to ensure that there are no errors. Correct as needed and take notes
e) Calculate SGC, Worker's Compensation, and payroll tax liability for BAS/IAS purpose
f) Pay the superfund for the SGC due (Create a journal transaction and post to the ledger)
g) Label the data consistent with the BAS/IAS labels for reporting use by the organisation
h) Save the file in a designated location and take a back-up on your USB

You will be provided with a separate workbook to process above transactions (FNSTPB402A Payroll Workbook). Ensure that you have a copy of the same.

Part B: Checklists:

As part of your responsibility to prepare company's financial reports and taxation documents, prepare the following reference documents to enable you organise and reconcile your tasks;

a) End of the month checklist for planning and processing payroll
b) A checklist for payroll activities to complete quarterly BAS lodgement (includes PAYG data)
c) End of the year checklist for payroll activities for finalising company's financial reports and tax preparation
d) Strategies for protecting data (e.g. system breakdown)

Discuss the above requirements with your manager (trainer/assessor role play) and confirm the process and timeframe for completing the above part.

Assessment Task 3:
Research and Present: Salary Packaging

Description:

Salary Packaging, sometimes referred to as salary sacrificing, is an Australian Taxation Office (ATO) approved way of receiving benefits such as motor vehicles, extra superannuation and other items by way of a pre-tax salary payment. By paying for these items before tax means that you will be taxed on your remaining income. This in turn lowers your taxable income, meaning you pay less tax (SPA, 2013).

In this assessment task, you will be required to research and present two separate examples of salary packaging, explaining how the salary packaging can benefit an employee (e.g. actual pay vs. salary packaging).

Assume that one of the Bean's Coffee employees Jack Brown has approach you for advice on salary packaging, and to know how salary packaging will help him save on taxes. Jack's current position is as follows;

Jack is paid a total salary of $60,000 (plus superannuation).

The tax Jack currently pays on $60,000 is $11,964 (including Medicare levy). Jack's net pay is, thus, $48,036 per year from which he pays pay all his mortgage payments, bills and living expenses etc.

Jack has two major expenses;

Jack has a fixed mortgage payment of $14,500 per annum. Jack's annual cost of his car is approximately $10,000

Jack wants to know if both of one of the expenses can be packaged in his salary. Based on Jack's situation, work out a most feasible solution for Jack.

Task:

Before you undertake the salary packaging task, your manager (trainer/assessor role play) has asked to research the relevant legislative and regulatory requirements on salary packaging and present a brief report.

Accordingly, you will also be required to first research and articulate relevant legislative and regulatory requirements with appropriate examples including;

• Australian Tax Office regulations such as:

o Australian Business Number (ABN)
o Employment Declaration
o Tax File Number (TFN) Declaration
• HELP
• Medicare levy
• Payroll tax
• ATO Pay As You Go (PAYG) withholding tax laws

• ATO Fringe Benefits Tax laws
• ATO superannuation laws
• Industry awards
o Commonwealth
o State and territory
• Individual employment contracts
• Leave acts: annual, sick and long service (commonwealth, state and territory)
• Payroll tax laws
• Privacy act 1988
• Workers compensation and occupational health and safety (OHS) Acts and regulations Provide the above information in form of a word-processed information sheet.

Presentation: Once you have determined the legislative and regulatory requirements/context, workout a salary packaging solution for Jack and present to the class.

Essentially, you will research and prepare your presentation in the following parts;

1. Legislative Framework and Implications
2. Salary Packaging
3. Use of a BAS agent for payroll services (scope of services under the TPB requirements)

You must highlight salary sacrifice and packaging benefits while explaining the relevant regulations/regulations that enable it. Also explain how the change in Jack's salary would impact the payroll system; and the changes that will need to be made to implement the new salary structure.

Assume that you are presenting to a multi-cultural workplace audience According prepare your presentation keeping basic design principles and audience-orientation in mind.

Assessment Task 4: Knowledge Test

1. What is the difference between an Award, an Enterprise Agreement (EB) and an Australian Workplace Agreement (AWA)?
2. What are the fundamental principles of TPB (EP) 01/2010: Code of Professional Conduct? Briefly describe each principle
3. As a tax professional, which strategies would you recommend to your management to keep the workplace safe and environmentally responsible?
4. What is a Fringe Benefit Tax? How does it apply to Salary Packaging?
5. What is the purpose of salary packaging? As a bookkeeper, what would your role in the salary packaging process be?
6. What is the aim of Equal Employment Opportunity (Commonwealth Authorities) Act? Where can this Act be found?
7. Briefly outline the following leave entitlements.
Sick leave
Annual Leave
Long services Leave
8. Explain the following terms:
PAYG Withholding Tax
Superannuation Awards
Leave Loading
Salary Sacrifice
9. Explain the difference between a flat and a hierarchical organisational structure. What are the typical reporting structures in each of the organisational types?
10. What is the difference between a manual and a computerised accounting system? Describe with examples.

Attachment:- Resolve Payroll Enquiries.rar