Reference no: EM132956077

FNSTPB402 Establish and Maintain Payroll Systems

Question 1 - Question and Answers

Answer the following questions in writing.

1. What are the basic scope of services for a business activity statement (BAS) agent providing payroll services?

2. What are award, enterprise agreements and industrial instruments?

3. Identify and explain at least 3 common organisational policy and procedures that affect payroll. One of these policies and procedure must include the structure of authority in organizations.

4. In your own words, describe why industry codes of practice are relevant to payroll operations.

5. Describe the difference between manual and computerised payroll systems.

6. Discuss, in your own words, legislation and record-keeping requirements from all of the following acts, standards, and regulations and how they affect business operation and reporting requirements.
a) Fair Work Act
b) National Employment Standards
c) Superannuation Guarantee (Administration) Act
d) Corporations law
e) Workers compensation and work health and safety
f) Tax related to payroll activities
g) Privacy Act (confidentiality and security of records)
h) Higher Education Loan Program (HELP)
i) Medicare levy
j) Tax Agent Services Act (TASA)
k) Current state, territory and Commonwealth industry and modern awards, and enterprise bargaining agreements
l) Individual employment contracts
m) Commonwealth, state and territory leave Acts including annual, sick and long service
n) Australian Bureau of Statistics (ABS) Act

7. Describe, in your own words, each of the following ATO requirements:
a) Australian Business Number (ABN)
b) Employment declaration
c) Tax file number (TFN) declaration

8. What are the TPB requirements for:
a) Registration and scope of services documentation requirements for BAS agents
b) Code of Professional Conduct

9. Explain relevant taxation law, including:
a) Pay as you go (PAYG) withholding tax
b) Fringe benefits tax (FBT)

10. Outline the key aspects for payroll of each of the following:
a) Routine:
i. Award payments
ii. Salary amount
iii. Salary packaging
iv. Superannuation guarantee
v. Super reporting

b) Non-routine:
I. Termination payments
II. Super guarantee charge

Task 2: Case Study and Practical Assessment

Student Instructions

1. Type all the answers in a word document if required.
2. You can conduct internet research to answer these questions.
3. Provide explanation of 2-3 lines when answering ‘Describe' questions.
4. Provide detailed workings for calculations questions.
5. Provide answers in table format wherever possible.

Using the scenario information provided in appendix, process the following requirements.

Question 1
You are an Accountant for All Star Ltd You are required to establish and maintain payroll systems for organisation. During the task, you are required to:
a) Assess if the scope of payroll services is outside your scope, identify the services that you need expert advice on. (Refer to your trainer/assessor)
b) Apply knowledge of legislation in relation to National Employment Standards, and legislative requirements regarding payroll payments.
c) Research and identify relevant state and modern awards, and employment agreements, regarding details to be set up in payroll system for individual employee based on given case study.
d) Create a MYOB data file in MYOB AccountRight using the following details:
All Star Ltd
125 Wentworth Ave,
Sydney 2000
NSW
e) Choose MYOB account list
o Enter the industry classification and type of business based on given case study.
f) Save the file on the desktop and title the file as your name and id.
g) Set up accounts:
o Opening balance:
» Cheque Account: $43,000
» Capital: $47,000
o Account List:
» Edit Account 2-1410 to change the account name to Union Fees Payable
» Add the following accounts to the Account List:
• 2-1412 Health Fund Payable (Other Current Liability)
• 2-1415 Superannuation Payable (Other Current Liability)
h) Load tax tables
o Load payroll tables
o Calculate the PAYG withholding taxes according to the rules established by the Australian Taxation Office (ATO).
i) Configure payroll system with complete data provided:
o Current payroll year: 2017
o Number of hours in your normal working week
o Your withholding payer number (11 234 423 213)
o Default superannuation fund for your employees
o Identify any discrepancies
j) Prepare and process payroll
o Wages
» Casual loading
» Overtime payments
o Leave and entitlements
» Karen Will is to be paid 1 Annual leave in advance
» Record 2 weeks of Allowance and deductions
o Superannuation:
» Use Super Guarantee (9.5%)
» Enter Employee Additional Super
o Deductions:
» Union fee: $10 per pay period
» Set up deduction for superfund and union fee
o Taxes
» Change the linked payable account for PAYG Withholding Tax to PAYG Withholding Payable.
k) Set up weekly payroll (time recording systems)
l) Calculate and input data from time recording systems
m) Reconcile payment for the pay period
n) Get it authorised by your trainer/assessor.
o) Create Employee cards
p) Process pays for first week.
q) Print the following reports:
o Pay Advices for first weak. Customise so each advice is on a separate page.
o Payroll register summary for month of June.
o Employee summary report
o Entitlement balance
o Payroll journal for first month
o Payment summaries
o Taxation summary
o General ledger
r) Get the report authorised by your trainer assessor (Senior Payroll Officer).
s) Create a backup zip file and store it on your desktop. Use the title "MyBackupDDMMYYYYname.zip".
t) Go to file and secure it using password.
u) Establish disaster recovery systems (Check your bank accounts and company accounts are up to date, and don't forget to take a backup from your accounting software).

Question 2
This task is in continuation with Question 1 of this assessment task.
Scenario:
Assume that the management has decided to terminate Karen Will's employment from the third week of the month and rest of the payment details remained same.
a) Considering the above given scenario, Identify and document in the template provided below the legislative and organisational requirements relevant to employment termination processes and payment.

Legislative requirements (150-200 words) Organisational requirements (150-200 words)

You must seek advice from your trainer/assessor to interpret requirements as required.
b) You are required to:
• Process the employment termination payment assuming the Karen Will's had 5 annual leaves and 3 sick leaves pending. The employment termination payments must be in line with the legislative requirements.
• Update records and systems in line with salary reviews and other changes in employment status

After completion of the month, you are then required to reconcile monthly transactions and prepare end of month reports.
 
Question 3
This task is in continuation with Question 1 and Question 2 of this assessment task.
Assuming that the same amount of salary, wages and payment are made for next three months. It is the end of first quarter of the financial year. The organisation lodges business activity statement at the end of each quarter.
You are required to:
a) Lodge Business Activity Statement (BAS) for last quarter of financial year.
b) Lodge instalment activity statement for current month.
c) Print annual reports for All Star Ltd for 2018.
d) Get the annual reports authorised by your trainer/assessor.

Question 4 - Role play

You are now required to do a role-play with your trainer. Your trainer will play the role of a staff member, Kim Jones and you will be the payroll officer. Your trainer will ask you some payroll related questions and you need to address them appropriately.

Using the scenario information provided in appendix, process the following requirements.

The student (Kim) will ask you about her queries one by one. One of the queries listed below is to be referred to the Senior payroll officer (your trainer/assessor). The queries will be complex. You are then required to:
a) Respond to payroll enquiries according to organisational and legislative requirements
b) Provide information according to organisational and legislative requirements
c) Refer enquiries outside area of responsibility or knowledge to senior payroll officer for resolution
d) Provide additional information or complete follow-up action within designated timeframes and according to organisational policy and procedures

Attachment:- Establish and Maintain Payroll Systems.rar