Prepare the schedule of payroll information for wages paid

Reference no: EM132413115

Assessment Title: BAS Assessment

Topic Content: Payroll, GST, & FBT (Topics 1 to 4)

ASSIGNMENT INSTRUCTIONS - Tanya Tassle owns Born Again Bags, a not for profit business that is registered for GST. Born Again Bags supports the diversion of post-consumer material (waste) into reusable bags to replace plastic bags. Fabric is gathered or donated and made into cloth bags which are sold to customers via an online shop.

Born Again Bags also receives income from donations and grants.

Receipts for the June quarter (inclusive of GST where appropriate):

Sales of bags	$39,950
Donations	$23,450
Grants	$19,800
Trade-in of industrial sewing machine previously used in the business	$1,000
Bags donated to local growers' co-op (market value $210)	$0

Expenses for the June quarter (inclusive of GST where appropriate):

Fabric and thread purchases	$9,900
Fabric donated (market value $3000)	$0
Subcontractors (not registered for GST)	$6,600
Rent	$6,000
Lunch at local restaurant*	$230
Accommodation for staff at conferences (Hotel)	$1,870
Airfares for staff to attend conferences**	$3,850
Bookkeeping services	$1,210
First Aid courses for staff members	$550
New sewing machine	$4,339
Business Loan (Principal $450 and interest $50)	$500

*Lunch at the local restaurant was for Tanya, the owner of Born Again Bags, and a commercial garment manufacturer who donates waste fabric to the business. For income tax purposes this amount would be classified as entertainment and a deduction would be denied under s32-5 ITAA97.

**During the period Born Again Bags paid for air fares for staff to attend a conference in Sydney where Tanya was speaking. Tanya was ill the week before the conference and could not attend. Consequently, the staff did not attend either and $1,100 of the airfares mentioned above were not used. The airline did not refund this amount.

Born Again Bags also imported labels from Canada. The cost of the labels was $550 and the freight was $35 (Australian Dollars). The supplier in Canada did not charge GST on these goods.

Salaries & Wages: Born Again Bags has 6 employees: 2 office staff and 4 machinists. They are paid weekly. All employees are entitled to the tax-free threshold.

Jenny, Kate, Lisa, and Martin are all permanent employees. Their weekly pay is based on an annual salary: and paid salaries. Annual salaries are:

- Jenny: $39,000

- Kate: $23,920

- Lisa: $52,000

- Martin: $18,720

Naomi and Oscar are casual employees and their weekly wage is based on the hours they work. Their work hours are set out in the table below.

Employee/Week	Naomi $24/hour	Oscar $16/hour
Week 1 - April	8	10
Week 2 - April	7	10
Week 3 - April	10	15
Week 4 - April	12	15
Week 5 - May	10	0
Week 6 - May	10	0
Week 7 - May	15	0
Week 8 - May	12	10
Week 9 - May	10	10
Week 10 - June	12	10
Week 11 - June	8	15
Week 12 - June	8	10
Week 13 - June	8	0

Business Activity Statement:

The ATO has advised that Tanya Tassle, as an individual taxpayer, has a quarterly income tax instalment of $3,200. This amount is payable by her personally in the June Quarter.

In the last FBT year Fringe Benefits were provided to the office manager. There is an FBT instalment showing on the BAS of $2,400. No Fringe Benefits have been provided in the current FBT year.

There are no liabilities for WET or LCT, and no fuel credits.

REQUIRED (with SUGGESTED TIMETABLE FOR COMPLETION):

a) Prepare the schedule of payroll information for wages paid, including PAYG withholding deductions, and net wages for each employee by week.

b) Calculate the employer's statutory Superannuation Guarantee obligations for each employee for the quarter.

c) Provide a short definition and discussion of GST taxable supplies. Explain and classify each transaction item listed, including wages and superannuation, by the type of GST supply, and calculate any GST included in the price.

d) Provide a short definition and discussion of creditable acquisitions and discuss what conditions need to be met before Born Again Bags can claim input tax credits in relation to the expenses listed? Explain whether each of the acquisitions is a creditable acquisition.

e) Prepare a fully labelled Business Activity Statement for the quarter ended 30 June 2019.

Show all calculations and formulas, and support all answers with references to legislation, case law and/or rulings.

Attachment:- Assignment Files.rar

Reference no: EM132413115

Questions Cloud

Analyze the diversity of your current or past organization : Analyze the diversity of your current or past organization. Discuss any faultlines, as described in the readings, among either your team, your organization's.

What sense of a person does the form of loyalty embody : Does the loyalty between Bernard and Leo extend beyond these two individuals? If so, to whom else does it extend? How are these people connected?

When does cloud computing make sense for a large corporation : Why can an IT governance archetype be good for one type of IS decision but not for another? When does cloud computing make sense for a large corporation.

What questions would you ask of the union supporter : Suppose a coworker just brought you a union leaflet urging employees to sign an authorization card. What questions would you ask of the union supporter?

Prepare the schedule of payroll information for wages paid : Prepare the schedule of payroll information for wages paid, including PAYG withholding deductions, and net wages for each employee by week

Who should evaluate employees performance : Who should evaluate employees' performance? What should leaders do when (individual, team, organization) performance is lacking?

Write down about uber which is ride share company : Write down about UBER "which is ride share company" motivates its employees to achieve better goals. Need 5 pages without cover and research.

What characteristics and ability do you need : As a good human resource manager, what characteristics and ability/skills do you need? Need 500 words with your own words and simple english, no need online.

Describe the key hr functional areas : Specifically focus on the key HR functional areas. Now, select any 3 of the functional areas that would be your first, second, and third choices if you could.

User Account

All Pages