Reference no: EM132723886

Payroll AB pays its employees fortnightly. Every Tuesday morning each store is required to send all part- time employee timesheets for the previous week through to the payroll officer. The payroll officer ensures that the timesheets have been approved by the relevant store managers, and checks that the total number of hours worked have been calculated correctly. Once the payroll officer is sure that the total hours worked look correct they enter the total working hours for each employee into the payroll system. The computer system calculates the total amount due to each employee using the employee data and the relevant wage rate. 6 On every second Wednesday morning the payroll officer uses the computer to process the fortnightly payroll. The payroll officer inputs an instruction for the computer to start payroll processing. The computer extracts the previously calculated details of wages amounts due to employees for the preceding two weeks, and then calculates salaries payments due using the employee details for each salaried employee.

• The amounts of tax and superannuation to be deducted from each employee's salary are calculated. Tax deductions are automatically assessed using a computerised PAYG tax table. Superannuation deductions are calculated by the computer using a formula of 9 per cent of the gross salary or wage due to the employee. Details of the total payroll amounts payable are automatically sent through to the accounts department, and individual payslips are generated and sent electronically to each employee. At 11 pm every second Wednesday, the computer automatically generates a file containing details of all salary and wage payments and deductions to be paid and sends it to AB's bank, which disburses the payment to the employees and third parties. A copy of the total payroll payments made is sent through to the accounts department. During phase 2.0 Payroll at AB Hi-Fi, a payroll officer has to check whether the hours recorded on employee timesheets are accurate. Take a moment to review this section of the narrative before you complete the following questions.

Problem a. What data does the payroll officer draw on when making the decision?

Problem b. Where does the data you identified in part (a) come from?

Problem c. Is this data reliable, i.e. is there any possibility that there could be errors in the data?

Problem d. Is this data sufficient to make the decision, or can you identify additional data that the officer should consider when making the decision?