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Establish and maintain payroll systems

Learner Workbook

00FNSTPB402

Establish and maintain payroll systems

Learner Workbook

Contents

TOC o "1-3" h z u Instructions to Learner PAGEREF _Toc108614796 h 3Assessment instructions PAGEREF _Toc108614797 h 3Assessment requirements PAGEREF _Toc108614798 h 5Candidate Details PAGEREF _Toc108614799 h 6Assessment FNSTPB402 - Establish and maintain payroll systems PAGEREF _Toc108614800 h 6Description of assessment activities PAGEREF _Toc108614801 h 7Assessment Activity 1(part A) PAGEREF _Toc108614802 h 7Part A: Knowledge test PAGEREF _Toc108614803 h 8Guidelines: PAGEREF _Toc108614804 h 12Assessment Activity 1 Part A checklist for assessor PAGEREF _Toc108614805 h 13Activity 1(part B) PAGEREF _Toc108614806 h 15Part B: Knowledge test PAGEREF _Toc108614807 h 16Assessment guidelines: PAGEREF _Toc108614808 h 23Assessment Activity 1 Part B checklist for assessor PAGEREF _Toc108614809 h 24Assessment activity 2(Project task) PAGEREF _Toc108614810 h 30Project Task PAGEREF _Toc108614811 h 32Part A: Activity PAGEREF _Toc108614812 h 35Part B: Activity PAGEREF _Toc108614813 h 37Part C: Activity PAGEREF _Toc108614814 h 38Assessment activity 3-Role play PAGEREF _Toc108614815 h 47Role Play PAGEREF _Toc108614816 h 48Assessment Activity 3 Role play checklist for assessor PAGEREF _Toc108614817 h 50Competency record to be completed by assessor PAGEREF _Toc108614818 h 53

Instructions to LearnerAssessment instructionsOverviewPrior to commencing the assessments, your trainer/assessor will explain each assessment task and the terms and conditions relating to the submission of your assessment task. Please consult with your trainer/assessor if you are unsure of any questions. It is important that you understand and adhere to the terms and conditions, and address fully each assessment task.

Written workAssessment tasks are used to measure your understanding and underpinning skills and knowledge of the overall unit of competency. When undertaking any written assessment tasks, please ensure that you address the following criteria:

Address each question including any sub-points

Demonstrate that you have researched the topic thoroughly

Cover the topic in a logical, structured manner

Your assessment tasks are well presented, well referenced and word processed

Active participationIt is a condition of enrolment that you actively participate in your studies. Active participation is completing all the assessment tasks on time.

PlagiarismPlagiarism is taking and using someone else's thoughts, writings or inventions and representing them as your own. Plagiarism is a serious act and may result in a learners exclusion from a course. When you have any doubts about including the work of other authors in your assessment, please consult your trainer/assessor. The following list outlines some of the activities for which a learner can be accused of plagiarism:

Presenting any work by another individual as one's own unintentionally

Handing in assessments markedly similar to or copied from another learner

Presenting the work of another individual or group as their own work

Handing in assessments without the adequate acknowledgement of sources used, including assessments taken totally or in part from the internet.

If it is identified that you have plagiarised within your assessment, then a meeting will be organised to discuss this with you, and further action may be taken accordingly.

CollusionCollusion is the presentation by a learner of an assignment as their own that is, in fact, the result in whole or in part of unauthorised collaboration with another person or persons. Collusion involves the cooperation of two or more learners in plagiarism or other forms of academic misconduct and, as such, both parties are subject to disciplinary action.

Competency outcomeThere are two outcomes of assessments: S = Satisfactory and NS = Not Satisfactory (requires more training and experience).Once the learner has completed all the assessments for this unit of competency, the learner will be awarded Competent (C) or Not Competent (NC) for the relevant unit of competency.

Confidentiality

The college will treat anything, including information about your job, workplace, employer, with strict confidence, in accordance with the law. However, you are responsible for ensuring that you do not provide us with anything regarding any third party including your employer, colleagues and others, that they do not consent to the disclosure of. While we may ask you to provide information or details about aspects of your employer and workplace, you are responsible for obtaining necessary consents and ensuring that privacy rights and confidentiality obligations are not breached by you in supplying us with such information.

Assessment appeals processIf you feel that you have been unfairly treated during your assessment, and you are not happy with your assessment and/or the outcome as a result of that treatment, you have the right to lodge an appeal. You must first discuss the issue with your trainer/assessor. If you would like to proceed further with the request after discussions with your trainer/assessor, you need to lodge your appeal via the complaint and appeal form which is available on the college website.

Recognised prior learningLearners will be able to have their previous experience or expertise recognised on request.

Special needsLearners with special needs should notify their trainer/assessor to request any required adjustments as soon as possible. This will enable the trainer/assessor to address the identified needs immediately.

Assessment requirementsAssessment can be:

Direct observation

Product-based methods e.g. reports, role plays, work samples

Portfolios annotated and validated

Questioning.

The assessment activities in this workbook assess aspects of all the elements, performance criteria, skills and knowledge and performance requirements of the unit of competency.

To demonstrate competence in this unit, you must undertake all activities in this workbook and have them deemed satisfactory by the assessor. Once you have demonstrated the required level of performance, you will be deemed competent in this unit.

As part of the assessment process, all learners must abide by any relevant assessment policies as provided during induction.

Candidate DetailsAssessment FNSTPB402 - Establish and maintain payroll systemsPlease complete the following activities and hand in to your trainer/assessor for marking. This forms part of your assessment for FNSTPB402 - Establish and maintain payroll systems

Name: _____________________________________________________________

Address:_____________________________________________________________

_____________________________________________________________

Email:_____________________________________________________________

Employer:_____________________________________________________________

Declaration

I declare that no part of this assessment has been copied from another persons work with the exception of where I have listed or referenced documents or work and that no part of this assessment has been written for me by another person. I also understand the assessment instructions and requirements and consent to being assessed.

Signed:____________________________________________________________

Date:____________________________________________________________

If activities have been completed as part of a small group or in pairs, details of the learners involved should be provided below:

This activity workbook has been completed by the following persons and we acknowledge that it was a fair team effort where everyone contributed equally to the work completed. We declare that no part of this assessment has been copied from another persons work with the exception of where we have listed or referenced documents or work and that no part of this assessment has been written for us by another person.

Learner 1:____________________________________________________________

Signed:____________________________________________________________

Learner 2:____________________________________________________________

Signed:____________________________________________________________

Learner 3:____________________________________________________________

Signed:____________________________________________________________

Description of assessment activities

There are three assessment activities in total. The first activity has two parts, the second activity is separated into three parts and the third activity contain role play. All assessment activities request students to demonstrate abilities to work independently and/or as a part of a team. The completion of assessment activities is expected to be within two weeks.

Assessment Activity 1(part A)Assessment instructions:

This assessment activity 1part A comprises of ten (10) written questions which you must respond to and submit to your trainer/assessor. Student must answer all questions to the required level, e. g. provide the number of points, to be deemed satisfactory in this activity.

This assessment activity is conducted as open book assessment (this means student can refer to textbooks) however this task must be completed independently.

Objective Performance Criteria

1.1 Assess scope of payroll services that a business activity statement (BAS) agent can provide, and identify need for independent expert advice

1.2 Apply knowledge of legislation in relation to National Employment Standards, and legislative requirements in regard to payroll payments

1.3 Research and identify relevant state and modern awards, and employment agreements, regarding details to be set up in payroll system for individual employees

2.1 Configure payroll system with complete data provided by employee and employer

2.3 Enter employee pay period details in payroll system in line with source data

3.2 Use employee source data to calculate, record and reconcile payroll according to legislative requirements

3.3 Reconcile total payments for pay period, and review and correct irregularities or refer them to designated persons for resolution

3.5 Distribute individual pay advice according to organisational and legislative requirements

3.6 Identify legislative and organisational requirements relevant to employment termination processes and payment, and seek advice to interpret requirements as required

4.1 Respond to payroll enquiries according to organisational and legislative requirements

4.2 Provide information according to organisational and legislative requirements

5.6 Extract and apply BAS and instalment activity statement (IAS) data according to legislative and regulatory requirements

Knowledge Evidence

Scope of services offered by a business activity statement (BAS) agent providing payroll services

Key principles of award and enterprise agreements and industrial instruments required to maintain payroll systems

Industry codes of practice relevant to payroll operations

Legislative and record-keeping requirements from all levels of government that affect business operation and reporting requirements.

Key aspects of routine and non-routine requirements for payroll.

Part A: Knowledge testType: Written/knowledge test

Group or Individual: Individual

Due date: TBA

Questions:

Answer the following:

How can you lodge your BAS online? Write your answer in 30-50 words.

When is it required to make adjustments in Goods and Services tax (GST)? Write your answer in 50-100 words.

List five (5) steps to be implemented to extract and apply BAS/IAS.

Answer the following:

What are the good faith bargaining requirements that a bargaining representative must meet? Write your answer in 50-100 words.

Explain in 50-100 words, the section 9 Remuneration and allowances of Australian bureau of statistics (ABS) act 1975.

Refer to the table given below, document the state commonwealth, state and territory leave Acts (whichever applicable) to long service leaves for different states.

State/territory Legislations applicable

New South Wale Victoria Queensland South Australia Western Australia Tasmania Northern Territory Australian Capital Territory If a company has a seven-day shift worker (who works all days Sundays and public holidays) and is engaged for part of a 12-month period, what modern awards must be received by that employee as per Manufacturing and Associated Industries and Occupations Award 2010? Write your answer in 50-80 words.

As per National Employment Standard, what is the rate of pay for Paid personal/carers leave? Write your answer in 30-50 words.

Answer the following:

Identify and document in the table given below the repayment rate for HELP based on given threshold income.

Repayment Income Repayment rate

Below $55,874 $55,874 $62,238 $62,239 $68,602 $68,603 $72,207 What is the base income threshold (under which you are not liable to pay the Medical Levy Surcharge) for singles and families?

Is it possible to influence the amount of super your employer pays for your benefit if you are on individual employment contract? Answer in Yes or NO.

Meng runs a building and construction business. He has qualified carpenters as well as office staff who do administration work. Identify and list two (2) applicable current commonwealth, industry and modern awards that will apply to his business.

Assume that the business you are employed for does not have a registered agreement that sets out the minimum conditions such as pay, leave and termination and you are a Software engineer in the company, Identify the award you are covered by.

The role of an industry code is to improve industry standards and support legislative requirements, by providing an industry with a flexible and low cost form of regulation. What industry codes of practice are applied to payroll operations. Explain in 200-250 words.

In this task, you are supposed to establish payroll set-up for salary packaging with the following details in MYOB:

Case study: Adam salary packages her car

Adam has been offered a new job with a salary of around $100,000 a year. As part of her contract negotiations Adam has asked to salary package a new car. She has also asked if she can make additional contributions to super.

Adam's new employer agrees to provide her with a fully maintained vehicle in exchange for $20,000 of her proposed salary. Adam also elects to salary sacrifice $5,000 a year into her super fund.

This means Adam will have a taxable income of $75,000 per year. The value of the motor vehicle will appear on her annual payment summary. The extra amount sacrificed into super will appear on Adam's annual payment summary as reportable employer super contributions.

Adam also negotiates with her employer that they will continue to pay her super on a salary of $80,000 which is her cash salary before super salary sacrifice.

As per the Tax Agent Service Act (TASA), what is scope of services that a BAS can provide? Explain in 50-100 words.Answer the following:

What are the ten (10) minimum entitlements of the National Employment Standard (NES)?

When can casual employees get NES entitlements? Write your answer in 30-50 words.

Employers have certain legal obligations when hiring employees. These terms and conditions are stipulated under following broad areas:

Industrial awards

Enterprise agreements

Individual contracts

Other arrangements

Explain the application of these areas in relation with the payroll maintenance responsibilities in 50-100 words.

List any ten (10) employee informations that must be present in payroll system to ensure its accuracy. (Guide: Short)

Following is the given data that includes the pay rate and the timesheet for employees working in TFT Pty. Ltd.

The following employee do not agree with his pay. You are required to check that wages paid are correctly calculated.

Note: Michell is paid weekly and completes a time card

You are required to:

Calculate, record and reconcile employee

Reconcile total payments for pay period, and review and correct irregularities

Correct the payroll table.

TIME CARD FOR WEEK ENDING

30/07/20

Employee: Michell Employee no.: 109

Department: Warehouse assistant Full-time

Day Start Stop Start Stop Hours (Ord) 1.25 1.5 2

Monday 8:30 12:30 13:00 16:30 7 0.5 Tuesday 8:30 12:30 13:00 16:30 7 0.5 Wednesday 8:30 12:00 12:30 16:00 7 Thursday 8:30 12:00 12:30 16:30 7 Friday 8:30 12:30 13:00 16:30 7 0.5 Saturday Sunday Comments

TOTAL 35 1.5 Employee Pay rate Tax detail Savings plan Trade union Health fund Tax offset

Michell 25.00 per hr With tax-free threshold with leave loading $17

per week

TFT Pty Ltd - WAGES CALCULATION CARD Week Ending: __30/07/20

NAME: Michell BASE HOURLY RATE: $ 25ACTUAL HOURS ADJUSTED HOURS AMOUNT

Normal time 35 35 $875.00

Time & a quarter 1.5 1.875 $ 46.87

Time & a half $

Double time $

GROSS PAY $921.87

DEDUCTIONS

PAYG Tax $162.00 Tax offset/HELP $ NET tax deducted $162.00 Superannuation $ Savings plan $ Trade union $17.00 Health insurance $ TOTAL DEDUCTIONS $179.00

NET PAY $742.87

Resources and equipment required to complete assessment activity1(part A)

Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the bookkeeping field of work and include access to:

office equipment, technology, software and consumables required to establish and maintain a payroll system, including:

workplace reference materials, such as procedural manuals and organisational policy

actual or simulated payroll data.

Computer

Internet

MS Word

Printer or e-printer

Adobe acrobat/reader

Learning management system i.e. Moodle

MYOB

Guidelines:

Trainers and/or assessors will provide an announcement regarding date and time for the demonstration to trainees after the first training session.

Trainees are expected to respond to all questions. Direction provided on the expected length of your response in the activity questions. (where applicable)

You must answer the questions by typing your answers in Microsoft Word or a similar program

You must upload the completed activity to the learning management system i.e moodle.

Assessment Activity 1 Part A checklist for assessorThis should be used by the trainer/assessor to document the learners skills, knowledge and performance as relevant to the unit activity. Indicate in the table below if the learner is deemed satisfactory (S) or not satisfactory (NS) for the activity or if reassessment is required.

Learners name Assessors name Unit of Competency

(Code and Title) Date(s) of assessment Marking checklist Performance Criteria

Did the student 1.1,1.2, 3.2,3.3.2,3.5

3.6,4.1,4.2,5.6

answer all questions to the required level, e.g. provide the number of points Yes No

(Please circle) answer all questions to the required level, e.g. word limits Yes No

(Please circle) Explain the ways to lodge BAS online Yes No

(Please circle) include the information about Good faith bargaining requirements, Explanation of section 9 Remuneration and allowances of Australian bureau of statistics (ABS) act 1975, Modern award for seven-day shift worker and Rate of pay for Paid personal/carers leave Yes No

(Please circle) Mention base income threshold (under which you are not liable to pay the Medical Levy Surcharge) for singles and families, two (2) applicable current commonwealth, industry and modern awards based on given scenario and award you are covered by based on given situation Yes No

(Please circle) Mention Industry code of practice applicable to payroll operations Yes No

(Please circle) Include the Screenshot of MYOB Yes No

(Please circle) Include the information about scope of BAS service Yes No

(Please circle) include the information about application of award and enterprise agreements and relevant industrial instruments to payroll maintenance responsibilities Yes No

(Please circle) 1.3

Include employees information should be present in payroll system

Establish payroll set-up for Adams salary packaging in MYOB. Yes No

(Please circle) 2.1

Calculate, record and reconcile employee (Michell)data Yes No

(Please circle) 2.3

Reconcile total payments for pay period, and review and correct irregularities Yes No

(Please circle) 3.2

Attempt all the questions asked Yes No

(Please circle) Comments

Assessors comments here:

The learners performance was: Not yet satisfactory Satisfactory

Activity 1(part B)Assessment instructions:

This assessment activity1part B comprises of twenty-two (22) written questions/short cases and scenarios which you must respond to and submit to your trainer/assessor. Student must answer all questions to the required level, e.g. provide the number of points, to be deemed satisfactory in this activity.

This assessment activity is conducted as open book assessment (this means student can refer to textbooks) however this task must be completed independently.

Objective Performance Criteria

1.2 Apply knowledge of legislation in relation to National Employment Standards, and legislative requirements in regard to payroll payments

2.1 Configure payroll system with complete data provided by employee and employer

2.2 Review payroll data and clarify discrepancies with designated persons

2.3 Enter employee pay period details in payroll system in line with source data

3.1 Conduct payroll preparation within designated timeframes and according to organisational policy and procedures

3.2 Use employee source data to calculate, record and reconcile payroll according to legislative requirements

3.4 Obtain authorisation of payroll and make arrangements for individuals payments in line with organisational requirements

3.5 Distribute individual pay advice according to organisational and legislative requirements

3.6 Identify legislative and organisational requirements relevant to employment termination processes and payment, and seek advice to interpret requirements as required

3.7 Produce, review and store payroll records according to organisational policy and security procedures

4.3 Refer enquiries outside area of responsibility or knowledge to designated persons for resolution

4.4 Provide additional information or complete follow-up action within designated timeframes and according to organisational policy and procedures

5.1 Maintain information and record keeping relating to payroll function according to current legislative and regulatory requirements

5.2 Prepare and reconcile month-end and year-end payroll records to ensure compliance with legislative and management deadlines

5.3 Update records and systems in line with salary reviews and other changes in employment status

5.4 Establish back-up and disaster recovery systems

5.5 Generate and distribute payroll reports in line with organisational policy

Knowledge Evidence

Key features of manual and computerised payroll systems

Legislative and record-keeping requirements from all levels of government that affect business operation and reporting requirements

Current Australian Taxation Office (ATO) requirements relating to payroll systems, including:

Australian Business Number (ABN)

payment summaries

employment termination payments (ETPs)

Tax file number (TFN) declaration

Key requirements of taxation law relating to payroll systems, including:

Pay as you go instalment (PAYGI) tax

Pay as you go (PAYG) withholding tax

Fringe benefits tax (FBT)

Performance evidence

present a payroll report for verification and approval

Part B: Knowledge test(Short case study and scenario analysis)

Type: Written/knowledge test

Group or Individual: Individual

Due date: TBA

Read the following case-study and answer the given below questions:

Firm: Alberto Accounting

Size: 6 staff

Product: Paychex

Commencement date: October 2011

On record: John Alberto, president (Alberto)/director (Decosimo)

Challenge/objective: To reduce the level of stress on staff, payroll typically having been time-sensitive and involved, particularly at year's end.

Amount spent: $30,000-$35,000 per year.

Process: Alberto Accounting is part of a larger area firm, Decosimo Accounting and Bookkeeping Services. When they merged in 10 years ago, they were able to keep the name and focus on the client base they had built.

Alberto' manager had been asking him for a few years to look into using an outsourced service like Paychex, and he finally entertained a meeting with them in 2011. The firm had been using server-based accounting software to do client payroll, bill payment, accounting, and payroll tax returns, but overall found it "cumbersome."

"I wanted to understand the cost and the process. The quality was there, but so the stress level," said Alberto. "Any firm that does payroll knows this, so we finally decided to look into Paychex."

Alberto admitted that moving from a software they had been using for years to a service was a process, but they had planned to transition clients over the course of a year beginning in the fourth quarter of 2011. Paychex created a portal where the firm could log in with their user ID and password and see all clients on the system at once. They could then select who they wanted to enter hours for, submit the batch and have Paychex "take care of the rest." The firm also had set up an internal process for entering and reviewing the data.

Alberto said that he could submit a batch for payroll processing at 5 p.m. and have the paper checks at 8 a.m. the following day. The firm usually tells clients there is a three-to-four-day turnaround period in case there are any is Michell s.

"Overall, the [transition] process went smoothly. We got a certain amount in the system during the fourth quarter and we kept moving clients over. I had to think about cost too: Some clients were on fixed fee and I had to talk to Paychex and they were able to come up with a scalable price list that was fair, less than half of what a normal company would get directly from them," said Alberto.

Moving over to Paychex wasn't entirely without its glitches; Alberto recalled one in particular where the office moved and some payroll checks were sent to the old location. He stressed that Paychex "did everything they could to remedy the is Michell," specifically giving them the mis-sent batches for free. "Overall service and processing, I got high to very high ratings from my staff on using them," said Alberto. "There were also some integration is Michell s with our accounting system, but we're working through those with them."

One of the main reasons for stress was responding to payroll enquiries for Alberto in accordance with organisational and legislative requirements and providing correct and compliant information. This involved sometime Alberto Accounting to consult external consultants hired by Decosimo Accounting and Bookkeeping Services and others.

Results: Alberto said that his goal of reducing stress at the end of every quarter and year-end has been achieved. "I had people not showing up for work at the end of a quarter or for year-end payroll because they were so stressed. That doesn't happen anymore."

The firm now has 90 percent of its clients that need payroll on Paychex. He also noted that they do not need as many people for the work. "In total, I can't say we're saving money, but it's about the service and the stress is lower, [and] managers are more productive so we can offer more levels of service," said Alberto. "We've had a hard time billing what it's really worth, but we wouldn't change it. If you have 25-50 employees or up to 200, you have to have some kind of a system that is very reliable. This one really works for us."

Next steps: The firm is looking for better integration with some of the software that it uses for its accounting work. They would also like to see more customizable reports.

Questions:

Provide your comments how Alberto is handle payroll enquiries in 50-100 words.

Why is it necessary for Alberto to respond to payroll enquiries? Answer in 50-100 words.

What Alberto has to consider providing information in accordance with organisational and legislative requirements? How they have handled this area so far? Answer in 50-100 words.

Who and why Alberto referred enquiries outside area of responsibility or knowledge? Write answer in 30-50 words.

One of the steps for Alberto is to provide additional information or complete follow-up action within designated timelines in accordance with organisational policy and procedures? What are the benefits to Alberto if they follow this step thoroughly? List any four (4).

The Bargain Store pays their employees once a month. The payroll register shows a gross salary expense of $40 000 for the month of June. PAYG amounts withheld total $6 000 and health fund contributions to be deducted from employees pay total $1 500.

The store is liable for payroll tax of 6%, and compulsory superannuation for employees of 9.50% of the total salary expense.

Make a general journal entry to record and pay the stores monthly payroll expense and other amounts due on 30 June and an entry on 16 July to pay all payroll deductions withheld and any other amounts owing.

Answer the following:

As defined in Fair Work Act 2009, what information must be kept in employee records? Identify and list any eight (8).

Under Superannuation guarantee (administration) act 2002, what records must be kept and retained by the employers? Write your answer in 100-150 words.

As per corporation law 2001, who long must a company keep its financial records.

What records must be kept in order to assess your fringe benefits tax (FBT) liability? Write your answer in 50-100 words.

List the steps required to be implemented to enter payroll information in MYOB.

When preparing a payroll data, errors in payroll calculation are inevitable. List and explain any five (5) most common payroll errors that can occur in 100-150 words.

Identify and explain the payroll procedure that needs to be followed to prepare and process payroll. Write your answer in 200-250 words.

Read the following case-study and answer the given below questions:

Firm: Barnes Sally & Co. / Johnstown, Pa.

Size: 15 staff

Product: Payroll Relief (Accountants World)

Commencement date: January 2012

On record: Staff accountant Jennifer Wagner

Challenge/objective: Efficiency in a payroll system and to make sure items were being paid and calculated properly, particularly in a state with difficult payroll taxes.

Amount spent: $997 for the first year, unlimited payroll, then $0.45 -$1.25 per check.

Process: The firm had been looking for a payroll processing company that would provide modern technology, unlike the one that they had been using. They also needed some efficiencies in the system, as payroll was difficult in their state, which requires businesses to pay federal, state and local payroll taxes.

More specifically, the previous program the firm used did not have establish back-up and disaster recovery systems, cloud capabilities, direct deposit, generate and distribute payroll reports or electronic tax filing, all of which it wanted to have.

The firm's accounting supervisor and head of the payroll department conducted a search and read about Payroll Relief in a trade magazine. The product appeared to have all of the key features the firm wanted and the price came to only $1 per check, or $.80 per check if they went over 7,000 checks in one year. "It did not take any convincing for the partners to agree to the product, because they were already looking for a replacement and this product had such a reasonable price," said Wagner.

She said that the system is very user-friendly, with help screens on each screen you go to. Accountants World also offers webinars to keep users updated on enhancements, as well as a support team that "will return calls in the same day."

Wagner noted that the flow of the system "made sense" and was very intuitive. She said that she was able to set up specifics per company, and that there is also a "suggestion" part of the system, which Accountants World responds to.

In addition, Payroll Relief has electronic filing, so tax payments and payroll reports go through automatically. To learn the system, she watched a webinar that gave instructions on setting up an employer and employee and saw all the parts of the system she needed to use. Wagner said that she was able to use Payroll Relief well in the same day.

Payroll Relief (Accountants World) has number of additional features, such as:

Maintaining all information and record keeping relating to payroll function in accordance with relevant legislation and regulations

Producing and reconciling month-end and year-end checklists to ensure compliance with relevant legislative and management deadlines

Updating records and systems in line with salary reviews and other changes in employment status

Establishing back-up and disaster recovery systems

Generating and distributing payroll reports in line with organisational policy

Extracting and applying business activity statement (BAS) and instalment activity statement (IAS) data in accordance with relevant legislation and regulations

Results: The firm currently has 30 live payroll clients, and has expanded the service since they started using it. Wagner noted that the firm has added more clients to Payroll Relief recently, and has had to expand the staff because of the increase in its payroll business. Specifically, she noted that the payroll practice has grown by about 20 percent over the past year.

Next steps: The firm is actively marketing the payroll service.

Questions:

Explain why Barnes Saly & Co. / Johnstown, Pa. must consider maintaining all information and record keeping relating to payroll function in accordance with relevant legislation and regulations? Write in 30-50 words.

Explain in 50-100 words the process to prepare end of month reconciliation report to comply with relevant legislation requirements.

What Barnes Saly & Co. / Johnstown, Pa. should consider updating records and systems in line with salary reviews and other changes in employment status. Write single sentence for this answer.

What documents are required to be included in the disaster recovery plan? Explain in 150-200 words.

Please mention the steps Barnes Saly & Co. / Johnstown may take to generate and distribute payroll reports in line with organisational policy? Write answer in 30-50 words.

Under the fair work act 2009, what are the obligations of employer in order to make deductions and what deductions should be made from employees pay? Explain in 100-150 words.

Why is it required to reconcile the accounts for the payrolls? Explain in 100-150 words.

As per the organisational requirements it is mandatory to acquire authorisation of payroll and payment of salaries. Why is it required to do so? Explain in 50-100 words.

As per the organisational policies and procedures, the preparation of the payrolls must be completed in given timeframe. Why is it required to do so? Explain in 50-100 words.

Mr Aydin is responsible for processing AYMAs payroll. Mr Aydin has some queries regarding end of year tasks:

How/when should Mr Aydin process payroll data for staff ceasing employment in December?

How and when should Mr Aydin a process payroll data for staff to be hired or rehired in the new year

You are required to answer the in 50-100 words.

Answer the following:

To what payees can an Individual non-business use PAYG payment summary for making payments? Mention any six (6).

For what type of amounts withheld from payments, payment summaries cannot be used? Mention any eight (8).

For a tax sales of invoice more than $1,000, What are requirements of ATO in terms of ABN number. List any seven (7).

Declaration of tax file number is required so that payers can work out the tax amount that is required to be withheld from payments. What requirements does an ATO have for employers in terms of Tax file number (TFN) declaration? Explain in 150-200 words.

What are the existing ATO requirements in terms of employment declaration? Explain in 50-100 words and list any five (5) employee declaration forms.

Betty is a registered tax (financial) adviser and has several clients, one of which is Crunchy munch, a large ice-cream retailing franchise. Betty has an ownership interest in Crunchy munch. Betty is approached by Ice Cold, a rival ice-cream retailing franchise, to provide tax (financial) advice services. Identify the code of professional conduct applicable and related Tax Practitioners Board (TPB) requirements. Write answer in 100-150 words.

What requirements must be fulfilled to be registered as a BAS agent as following:

Registering as an individual BAS agent

Registering as a company or partnership BAS agent

Explain in 200-250 words.

Answer the following:

Based on the PAYG instalment quarters given in the table, identify the PAYG quarterly instalments due dates.

Instalment quarters ending on: Instalments due dates

30 September 31 December 31 March 30 June Under subdivision A of A New Tax System (Pay as You Go) Act 1999, what information must be given to the commissioner if you are liable to pay an instalment for the period? Write your answer in 50-80 words.

Under Privacy act principle 12, when can an APP entity give access to personal information of an individual? Write your answer in 50-100 words.

Answer the following:

What does an employment termination payment (ETP) include? Write your answer in 50-70 words.

How are employment termination payments (ETP) taxed? Write your answer in 30-100 words.

If you do not pay the minimum amount of super guarantee (SG) for your employee into the correct fund by the due date, how will you calculate super guarantee charge (SGC) you need to pay? Write your answer in 30-50 words.

Explain in 150-200 words, the key features of computerised payroll systems and manual payroll system.

What policies and procedures affect the payroll system of the organisation taking into consideration the structure of authority in the organisation? Identify and explain any five (5) in 200-250 words.

Resources and equipment required to complete assessment activity1(Part B)

office equipment, technology, software and consumables required to establish and maintain a payroll system, including:

workplace reference materials, such as procedural manuals and organisational policy

actual or simulated payroll data.

Computer

Internet

MS Word

Printer or e-printer

Adobe acrobat/reader

Learning management system i.e. Moodle

MYOB

Assessment guidelines:

Trainers and/or assessors will provide an announcement regarding date and time for the demonstration to trainees after the first training session.

Trainees are expected to respond to all questions. Direction provided on the expected length of your response in the activity questions. (where applicable)

You must answer the questions by typing your answers in Microsoft Word or a similar program

You must upload the completed activity into the learning management system i.e moodle.

Assessment Activity 1 Part B checklist for assessorThis should be used by the trainer/assessor to document the learners skills, knowledge and performance as relevant to the unit activity. Indicate in the table below if the learner is deemed satisfactory (S) or not satisfactory (NS) for the activity or if reassessment is required.

Learners name Assessors name Unit of Competency

(Code and Title) Date(s) of assessment Marking/Benchmarks checklist Performance Criteria

Did the student 1.2,2.2,2.1

2.3,3.1

3.2,3.4,3.5

3.6,3.7

4.4

5.1

5.3

Include the method to respond to payroll enquiries Yes No

(Please circle) Explain the necessity to respond to payroll enquiries Yes No

(Please circle) Things to consider providing information in accordance with organisational and legislative requirements and referring enquiries outside area of responsibility Yes No

(Please circle) Shows how to record payroll and other information Yes No

(Please circle) Mention record keeping requirements under different legislative requirements Yes No

(Please circle) Include the steps required to be implemented to enter payroll information in MYOB Yes No

(Please circle) Include most common types of payroll errors Yes No

(Please circle) Include the payroll procedure that needs to be followed to prepare and process payroll Yes No

(Please circle) Include the process to prepare end of month reconciliation report Yes No

(Please circle) 5.2

How Jhon Alberto handle and respond to payroll enquiries Yes No

(Please circle) 4.1

How John Alberto responds to the enquiries outside area of responsibility Yes No

(Please circle) 4.3

What John Alberto has to consider providing information in accordance with organisational and legislative requirements? Yes No

(Please circle) 4.2

Mention about the documents required to be included in the disaster recovery plan (Barnes Saly & Co. / Johnstown) Yes No

(Please circle) 5.4

Include the steps to generate and distribute payroll reports Yes No

(Please circle) 5.5

Comments

Assessors comments here:

The learners performance was: Not yet satisfactory Satisfactory

Mapping of assessment activity 1 (Part A & Part B)

Assessment mapping Performance criteria/Benchmarks Assessment Activity 1

(Part A& Part B)

1.Establish payroll requirements1.1 Assess scope of payroll services that a business activity statement (BAS) agent can provide, and identify need for independent expert advice 6

1.2 Apply knowledge of legislation in relation to National Employment Standards, and legislative requirements in regard to payroll payments 2,3,7,18

1.3 Research and identify relevant state and modern awards, and employment agreements, regarding details to be set up in payroll system for individual employees 3

2.Record payroll data2.1 Configure payroll system with complete data provided by employee and employer 9,14

2.2 Review payroll data and clarify discrepancies with designated persons 15

2.3 Enter employee pay period details in payroll system in line with source data 10,12,14

3.Prepare and process payroll 3.1 Conduct payroll preparation within designated timeframes and according to organisational policy and procedures 16,21,22

3.2 Use employee source data to calculate, record and reconcile payroll according to legislative requirements 10, 12,16

3.3 Reconcile total payments for pay period, and review and correct irregularities or refer them to designated persons for resolution 10, 19

3.4 Obtain authorisation of payroll and make arrangements for individuals payments in line with organisational requirements 20

3.5 Distribute individual pay advice according to organisational and legislative requirements 2,3,7,27,29,30

3.6 Identify legislative and organisational requirements relevant to employment termination processes and payment, and seek advice to interpret requirements as required 2,3,7,22, 29

3.7 Produce, review and store payroll records according to organisational policy and security procedures 13

4.Handle payroll enquiries4.1 Respond to payroll enquiries according to organisational and legislative requirements 2,3,7,11.1,11.2,22

4.2 Provide information according to organisational and legislative requirements 2,3,7,11.3

4.3 Refer enquiries outside area of responsibility or knowledge to designated persons for resolution 11.4

4.4 Provide additional information or complete follow-up action within designated timeframes and according to organisational policy and procedures 11.5,22

5.Maintain payroll5.1 Maintain information and record keeping relating to payroll function according to current legislative and regulatory requirements 13,17.1

5.2 Prepare and reconcile month-end and year-end payroll records to ensure compliance with legislative and management deadlines 12,17.2,19

5.3 Update records and systems in line with salary reviews and other changes in employment status17.3

5.4 Establish back-up and disaster recovery systems 17.4

5.5 Generate and distribute payroll reports in line with organisational policy 17.5

5.6 Extract and apply BAS and instalment activity statement (IAS) data according to legislative and regulatory requirements 1

Knowledge Evidence Assessment Activity 1

(Part A& Part B)

Scope of services offered by a business activity statement (BAS) agent providing payroll services 1.1,1.6

Key principles of award and enterprise agreements and industrial instruments required to maintain payroll systems 1.2,1.3,1.8

Organisational policy and procedures that affect payroll, including the structure of authority in organisations 1.32

Industry codes of practice relevant to payroll operations 1.4

Key features of manual and computerised payroll systems 1.31

Legislative and record-keeping requirements from all levels of government that affect business operation and reporting requirements, especially in regard to:

Fair work act

National employment standards

Superannuation guarantee (administration) act

Corporations law

Workers compensation and work health and safety

state payroll tax relating to payroll activities

Privacy Act and requirements relating to confidentiality and security of records

Higher education loan program (HELP)

Medicare levy

Tax agent services act (TASA)

Individual employment contracts

current commonwealth, state and territory industry and modern awards, and enterprise bargaining agreements

commonwealth, state and territory leave Acts, including annual, personal, paid parental and long serviceAustralian bureau of statistics (ABS) act1.2,1.3,1.6,1.7,1.13,1.29,

1.30

Current Australian Taxation Office (ATO) requirements relating to payroll systems, including:

Australian Business Number (ABN)

payment summaries

employment termination payments (ETPs)

Tax file number (TFN) declaration1.23,

1.24,

1.25,

1.26

Tax Practitioners Board (TPB) requirements relating to payroll systems, including:

Registration and scope of services documentation requirements for BAS agents

Code of Professional Conduct1.1,

1.6,

1.27,

1.28

Key requirements of taxation law relating to payroll systems, including:

Pay as you go instalment (PAYGI) tax

Pay as you go (PAYG) withholding tax

Fringe benefits tax (FBT)1.13,1.23,1.29

Key aspects of routine and non-routine requirements for payroll, including:

routine: award payments, salary amount, salary packaging, superannuation guarantee and superannuation reporting

non-routine: termination payments and superannuation guarantee charge 1.2,1.3,1.5,1.7,1.13,1.30

Assessment activity 2(Project task)Type: Practical demonstration Establish and maintain payroll systems in MYOB AccountRight.

Group or Individual: Individual

Due date: TBA

Length/Duration: TBA