Reference no: EM133148172

Assessment Task

Establish and maintain payroll system project

Task summary

This task requires you, in the role of Payroll Officer for Oz Office Supplies, to set and maintain a payroll system using up a computerised payroll system for the company (MYOB).

You will be required to produce a number of payroll reports as outlined in the assessment.

Your assessor will observe you setting up the system and will use a checklist to record your performance. The checklist is included for your information and you should review it to ensure you understand the criteria against which you will be assessed.

Assessment Task 2 Instructions

Complete the following activities:

1. Payroll system preparation
Review Company Information and Employee Information so that you are familiar with the information you need to establish and maintain the payroll system.

Review the Oz Office Supplies Payroll Policy and Procedures too, as you will need to follow these throughout this assessment.

Conduct research to identify the following:

• Scope of services
Describe the scope of payroll services that a BAS Agent can provide.
Also find out how the services provided by a bookkeeper differs to that of a registered BAS Agent.

• Experts
Locate, and record the details of, at least two local experts who could help if assistance was required with payroll services.
Give the name of the individuals or companies, their contact details, and the services they provide.

• Termination
Name and outline the legislation that covers notice of termination and final pay for Australian workers.
Use the Fair Work Ombudsman website below to help you identify how much notice Oz Office Supplies' employees must be given if their employment is to be terminated.
List also the company's payroll obligations to the terminated employee if Oz Office Supplies decides to pay an employee out rather than let them work out their notice period.

Write a short (about a page) report that includes the information that you have collected on the above.

Use the Payroll Preparation Report Template to guide your work.

2. Send an email to your assessor.
The text of the email should be in grammatically correct English, written in an appropriate (polite, business-like) style.
It should introduce and summarise the contents of the attachment.

Attach your Payroll Preparation Report to the email.

3. Set up payroll system
Using the Company Information and Employee Information for Oz Office Supplies, set up the payroll system for the company as outlined below.

Before you start this task, find out about annual leave entitlements as set out in the National Employment Standards, based on the employment status of each employee. You will need to use this information when setting up the payroll system and when you are required to explain entitlements to your assessor.

Your assessor will observe you entering all of the information into the payroll system to check that you can do this correctly.

Complete all of the following tasks:
a) Click on the Load Tax Tables button to check that the latest tax tables have been included. Show your assessor how to use the system to check for updates.

b) Set up payroll information as per the company information provided to you.

c) Assign linked payroll accounts.

d) Review payroll categories included in MYOB and enter the information provided to you. In some cases, MYOB automatically includes the information and you will need to check this.

e) Build the employee list by using the Employee Information provided to you. As you are entering the information about annual leave, explain to your assessor standard employment entitlement for annual leave according to the National Employment Standards.

f) One of the employees, Alice Brown has a salary sacrifice arrangement in place whereby he pays an additional 2% of his salary into superannuation. Enter this amount into MYOB under superannuation.

Explain to your assessor what salary sacrifice (sometimes also known as salary packaging) is.
Give at least three examples of salary sacrificed benefits and three important considerations for a salary sacrifice arrangement.
You should also explain Fringe Benefits.

Your assessor will make notes on your verbal explanation in the checklist.

g) As stated in the information provided to you, one of the employees is covered by an Award. Ask your assessor about their entitlements in relation to Rostered Days Off. Your assessor will provide these to you. Enter this information into MYOB to allow for rostered days off. If you do not know how to enter rostered days off into MYOB, use the help function to assist you to enter this information or research this information on the Internet.

h) When you have completed entering all of the employee information, open the cards for each employee and check the information you have entered into MYOB for each employee against the employee information provided to you to make sure it is all correct. Edit any errors.

i) Ensure that ensure the security of your MYOB company file according to the Oz Office Supplies Payroll Policy and Procedures. You should also explain to your assessor who may access records according to the policy, how often passwords must be changed and why.

4. Prepare and process payroll
You are required to process payroll according to the time frame identified in the Oz Office Supplies Payroll Policy and Procedures and according to the Time Sheet Summary
Assume that you are provided the time sheet summaries each week, as set out in the Payroll Policy and Procedures.

Complete all of the actions that are required by the Payroll Policy and Procedures to process the payroll for the week ending 7 June 2018, noting that this will also include payment of superannuation (payroll liabilities).

5. Send an email to the Finance Manager (your assessor).
The text of the email should be in grammatically correct English, written in an appropriate (polite, business-like) style.
It should state that the payroll details have been entered into MYOB and seek their approval to process the pays as set out in the Payroll Policy and Procedures.

Your assessor, in the role of the Finance Manager, will give their approval, or ask you to make any necessary alterations, verbally.

6. Process the payroll.
You are required to process the pay and print the pay slips for Alice Brown, Ben Clark and Chris Dean and prepare electronic payments for the week ending 7/6/18.
Your assessor will check these to make sure you have entered all of the information accurately.

7. Process further payroll periods.
Repeat this process that you carried out in activity 4 for weeks ending 14/6/18, 21/6/18 and 28/6/18 using the information provided to you.

It is not necessary for you to email the Finance Manager for their approval for these weeks.

Print off the payslips for the three employees and give these to your assessor.

8. Handle discrepancies
Assume you have received the following email from Chris, one of the employees.

Dear Payroll Officer

I have just received my pay slip for the week. I have only been paid for 12 hours, whereas in fact I worked 21 hours.
Can you please update this, so I can be paid the correct amount?

Thanks Chris

Review the Payroll Policy and Procedures and follow the correct procedure for handling discrepancies. Assume that your assessor is the Administration Manager.

Once you receive approval, you should also demonstrate to your assessor how to make the relevant change in MYOB.

9. Produce payroll records
The Oz Office Supplies Payroll Policy and Procedures state that when you have completed the tasks above, you are required to print off the following end of month reports:
a) Payroll summary report for June 2018
b) Payroll register report for June 2018
c) Payroll activity (summary) report for June 208
d) Profit and Loss Statement for June 2018
e) Balance Sheet as at 30 June 2018
f) Entitlement Balance (summary) report for June 2018
g) Superannuation accrual by fund (summary) report for June 2018

Create a folder and save all of the summary reports you have generated as pdf files.
Follow the Oz Office Supplies policy on storage of electronic files to store all end of month reports under Payroll summary reports for the month in question.

Your assessor will observe you filing the documents.

10. Send an email to your assessor.
The text of the email should be in grammatically correct English, written in an appropriate (polite, business-like) style.
It should introduce and summarise the contents of the attachments.
Attach the payroll records that you created in activity 5 to the email.

11. Complete checks and balances
This part of the assessment requires you to complete checks and balances as follows:
a) Check that the payroll activity report and the payroll register report match and that the subsidiary ledger agrees with the control accounts.
b) Complete the reconciliations of payroll on the June Payroll Checklist as provided.
c) Reconcile the PAYG withholding.
d) Pay payroll liabilities including Health Insurance, Union Fees, Superannuation and PAYG withholding to the ATO.
e) Check the balance sheet as at 30-06-2018 to confirm all payroll liabilities have been paid.

Create and save a copy of each of these reports:
• Payroll register (summary) report for year ended June 2018
• Payroll activity (summary) report for year ended June 2018
• Profit and Loss Statement for year ended June 2018
• Payroll Summary report for year ended June 2018
• Print the Entitlement Balance (summary) for the year ended 30 June 2018
• Print the balance sheet for year ended 30 June 2018
• As you need to reconcile gross wages and superannuation for the 2017/18 financial year, prepare the payment summaries for the 30 June 2018 financial year for each employee.

12. Send an email to your assessor.
The text of the email should be in grammatically correct English, written in an appropriate (polite, business-like) style.

It should introduce and summarise the contents of the attachments and advise them of the payroll information from the reports that are to be included in the IAS and BAS.

The email text should also explain to your assessor at least one cause why reports might not reconcile and how to rectify this.

Attach the six reports and the payment summary for each employee from activity 7 to the email.

13. Update records
Assume that Alice Brown has recently had a salary review and his salary has been increased to $59,500.

Update his records. Show your assessor that you know how to do this in MYOB.

14. Establish a backup and disaster recovery system.
Assume that you have been tasked to ensure that there is a strong back up and disaster recovery system in place. Research how to do this for MYOB and then write a simple procedure for back up and disaster recovery.

Create a new Word document and write the procedure in this. Show this to your assessor.

Create a backup file and store it as set out in your procedure.
Your assessor will observe you doing this.