Part 1: Research Tasks
Part 1: Research Tasks
Case Study Scenario
Policy and Procedures for Gold Service Dry Cleaning
Gold Service Dry Cleaning has a payroll of 20 employees and uses a registered BAS agent/bookkeeper (you) for processing its payroll using their accounting system.
Payroll Procedures
All employees are paid fortnightly on Thursday by direct credit to their bank accounts based on the timesheets completed or a standard fortnightly salary.
Employee timesheets to be submitted by 12 pm Monday for the previous fortnight
Timesheets are forwarded to the factory shift supervisor for authorisation
The factory shift supervisor authorises the timesheets by 4 pm Monday before forwarding them to you.
You process the payroll by 1.00 pm on Wednesday.
You prepare an employee summary report after the payroll is processed for review by the business owner, prior to payment.
Electronic payment is approved by the owner for payment on Thursday.
Any errors, concerns and discrepancies are referred to the business owner for resolution.
Any changes in pay, annual leave, sick leave and other leave entitlements are authorised by the business owner for processing by the bookkeeper and copies retained in the employee files.
All new employees are required to complete TFN declaration and provide details such as bank accounts, deductions and superannuation funds to the bookkeeper for recording purposes.
All employee information is retained by the business owner in the office in a locked filing cabinet.
Bookkeepers Duties
The owner expects you to take care of any regular payroll activities such as the provision of payslips and Single Touch Payroll, pay enquiries, preparing payments to ATO, any other payroll obligations and forwarding any required information to ATO.
Additional Duties
The owner of the business has asked you to conduct a short in-house session for staff about allowable tax deductions to assist employees when preparing their income tax returns. Also, you are requested to answer any questions regarding salary packaging & salary sacrifice, particularly how it affects superannuation contributions and income tax.
Task 1
Read the Case Study Scenario: Policy and Procedures for Gold Service Dry Cleaning.
Referring to the Tax Agent Services Act 2009 (TASA), Tax Practitioners Board, and allowable services you can provide as a registered BAS agent, answer the following:
You are employed as a registered BAS agent by Gold Service Dry Cleaning. Identify any services (if any) that are outside the scope of payroll services you can provide as a registered BAS agent. (As a guide your answer should be between 20-40 words).
If there are any services you cannot provide what would be your course of action? (As a guide your answer should be between 40-60 words).
Task 2
When setting out the minimum employment conditions for individual contracts and enterprise agreements, the conditions cant be less than the base pay rate in the relevant award and the National Employment Standards still apply.
In the table below, indicate if the proposed employment conditions for Lee, Ray and Sue, new employees of Gold Service Dry Cleaning meet these two requirements. Staff employed in the dry cleaning factory are employed under the Dry Cleaning and Laundry Industry Award 2020, office staff are covered by the Clerks Award. If the condition does not meet either of the requirements, indicate what the minimum requirement should be. You will need to access the National Employment Standards and the relevant award for the organisation to assist in answering this question.
Lee is 25 years old and is employed in the office as a full time Office Administrative Assistant, Level 1.
Employment Condition Does it meet the award or National Employment Standards minimum requirements?
Yes / No What is the minimum employment condition?
E.g An employee taking annual leave will receive loading of 12% No Annual leave loading is 17.5%
5 days personal leave per year Full time ordinary hours are 35 hours per week fixed between 8:30 and 4:30. Annual salary is $40,955 There is no payment for overtime required during the busy period Ray is employed full time in the dry cleaning factory as a supervisor Dry Cleaning employee level 5. Ray holds a 1st aid qualification and will perform 1st aid duty at the factory.
Employment Condition Does it meet the award or National Employment Standards minimum requirements?
Yes / No What is the minimum employment condition?
4 weeks annual leave per year Full time ordinary hours are 40 hours per week Weekly wage is $950.00 Any overtime worked will be taken as time off instead of payment at normal pay rate. Sue is 16 years old and is a casual employee classified as Laundry employee level 1 in the factory. Her work roster changes weekly, she normally works 15 hours per week. Sue was not provided with any information or documents when she started work. She was only requested to provide her TFN and bank account details.
Employment Condition Does it meet the award or National Employment Standards minimum requirements?
Yes / No What is the minimum employment condition?
Hourly pay rate is $9.88/hr No paid annual or personal leave entitlement No superannuation guarantee contributions New Fair Work Information Statement Task 3
Review the organisational policy and procedure of Gold Star Dry Cleaning Service and identify essential control procedures that affect payroll? In your response, identify the level of authority and procedures that affect payroll.
(As a guide your answer should be between 50 and 80 words).
Areas to be addressed Control Procedure
Levels of Authority and Authorisation i.e. timesheets, payroll changes, payments, errors Task 4
The business owner of Gold Star Dry Cleaning Service is considering implementing a computerised payroll system such as MYOB and has asked your advice. Identify key features of manual and computerised payroll systems, including the advantages and disadvantages of each for the owner to consider.
(As a guide your answer should be between 100 and 150 words).
Types of system Key features Advantages/ Strength Disadvantages/ Weakness
Manual System Computerised system Task 5
An Industrial Instrument is a term that encompasses any legally enforceable document that applies to employees, including awards, enterprise agreements and employment contracts.
Refer to the New Fair Work Information Statement and identify two key principles applicable to each of the following in maintaining a payroll system. (As a guide your answer should be between 40 and 50 words).
Industrial Instruments Key Principles
Awards Enterprise Agreements Employment Contracts Explain how the above industrial instruments affect the National Employment Standards within an organisation.(As a guide your answer should be between 40 and 60 words).
Task 6
Research legislative and record-keeping requirements from all levels of government (Federal and State, including ATO) and briefly identify the impact on business operations and reporting requirements in the provision of payroll service. Refer to Appendix 3 for websites
Fair Work Australia requires all employers to provide a Statement to new employees either before employment has commenced or as soon as possible after they start their new job.
What is the name of this statement?
Referring to the Statement in Task 6(i) and the 12 National Employment Standards, identify which standards are applicable for each employment category in the table below (tick or cross).
National Employment Standards Full-time employees Part-time employees Casual employees
Annual Leave Personal Leave (Sick or carers leave) Carers leave Compassionate leave Family & domestic violence leave Community service leave (paid) Parental leave Maximum hours of work Public holidays (paid) Notice of termination Redundancy pay Briefly explain the requirements the Australian Taxation Office (ATO) places on employers in relation to the following. (Maximum 30 words each).
ATO Requirements
Australian Business Number (ABN) Payment Summaries and Single Touch Payroll (STP) Employment termination payments (ETP) and tax deducted Tax file number (TFN) declaration Record-keeping requirements of governments and legislation will affect the business operations of employers and varies depending on the legislation.
Briefly describe the record-keeping requirements in regard to the following. (Maximum 40 words each).
Record-keeping requirements
Fair Work Act how long does this act require employers to keep payroll records? Superannuation Guarantee (Administration) Act 1992 (Sect 79) how long does this act require employers to keep payroll records? Corporations Act 2001 (Sect 286) how long does this act require employers to keep financial records? What type of register must be kept for workers compensation requirements? State payroll tax (Revenue NSW)
Use the link to answer the following questions.
https://www.revenue.nsw.gov.au/taxes-duties-levies-royalties/payroll-tax
What is the 2020-2021 annual threshold?
What is the current rate of NSW payroll tax?
What are the record keeping requirements of Revenue NSW? Which document will inform the employer that an employee has a Higher Education Loan Program (HELP)? Tax Agent Services Act (TASA) in regards to Continuing Professional Education (CPE) of BAS agents:
What are the CPE hours required?
What records must be kept?
How long these records must be kept? What information is collected by the Australian Bureau of Statistics (ABS) Act when an employer completes a survey? Which legislation supports the management of the collection of personal information? Requirements relating to confidentiality and security of records Medicare levy (variation declarations) The Fair Work Ombudsman website contains information about workplace entitlements and obligations. It also provides information with regard to the records employers are required to keep for employees.
https://www.fairwork.gov.au/pay/pay-slips-and-record-keeping/record-keepingReferring to the record keeping obligations, briefly state (in dot point) the information required to be kept for the following:
Types of Records Fair Work Record-keeping requirements
General Records Pay Records Superannuation Contribution Records Ending Employment Records Leave Records: including annual, personal, paid parental and long service Key requirements of taxation law relating to payroll systems, include:
PAYG income tax instalment
PAYG Withholding.
Fringe benefits tax (FBT) as it relates to salary packaging.
Complete the table below:
Business Activity Statement item Brief description
PAYG Income Tax Instalment PAYG Withholding Fringe benefits tax (FBT) as it relates to salary packaging
Task 7
Employee information is protected by the Privacy Act and Fair Work Act. (As a guide each answer should be between 10 and 20 words).
Identify two security procedures you could use to protect all employee information in a computerised payroll system.
1.
2.
Identify two security procedures you could use to protect all employee information in a paper-based manual system.
1.
2.
Task 8
You would like to commence a bookkeeping business, undertaking payroll services for a fee. Under the Tax Agent Services Act 2009, individuals providing payroll services for a fee must register with the Tax Practitioner Board (TPB). List the four TPB requirements you need to obtain to register as a BAS Agent. (As a guide your answer should be between 40 and 50 words).
1.
2.
3.
4.
Task 9
When registering as a BAS Agent, you must submit a Statement of relevant experience-BAS agent form. You have regularly performed the following payroll tasks under the supervision of a tax agent. Indicate if the task is within the scope of services for BAS agents and can be used on the Statement of relevant experience-BAS agent form, by completing the table.
Payroll Experience Is the experience a BAS Service?
Yes / No
Prepare payment summaries and the Payroll Verification report (STP) Printing payroll reports from payroll system Calculate and report PAYG Withheld amounts Calculate superannuation guarantee Calculate and report state payroll tax
Task 10
As a registered BAS Agent, you must comply with the Tax Agent Services Act 2009(TASA), including the Code of Professional Conduct (Code). The Code of Professional Conduct (Code) is a legislated code that sets out the professional and ethical standards required of Registered Tax Agents and BAS Agents. It outlines the duties that agents owe to their clients, the Tax Practitioners Board (TPB) and other agents. The Code includes a number of Core Principles organised into categories.
List the first four categories.Your answer should be between 6 and 10 words.
1.
2.
3.
4.
Task 11
Identify key aspects of the following routine and non-routine requirements for payroll operation: (As a guide your answer should be between 20 and 80 words for each requirement).
Routine and non-routine requirements of payroll Key Aspects brief descriptions
Award Payments Salary amount Salary packaging Superannuation guarantee Superannuation reporting requirements of employers Termination payments Superannuation guarantee charge
Part 2: Practical Non-Routine Tasks
Task 1 Termination Pay
Identify the legislation and the number of weeks notice that must be given to an employee when terminating an employee under the age of 45 who has been employed with the business for 4 years? (As a guide your answer should be up to 20 words).
Identify the legislation and the number of weeks redundancy pay payable to a permanent employee who is made redundant due to a reduction of sales and has been employed with the business for 6 years and 3 months? (As a guide your answer should be up to 20 words).
On 22 November 2020, Christine retired after joining her employer in 1999. Details:
Pay rate is $35 per hour and normal hours are 38 per week.
On retirement, she had 20 hours of annual leave, 275 hours of long service leave and 86 hours of personal leave accrued.
Christine is entitled to leave loading.
Christine qualified for an early retirement scheme incentive payment of $10,000. The accountant advises that this amount is taxed at 17% which includes Medicare Levy.
The TFN has been supplied, she claims the tax-free threshold and has no offsets.
Christines retirement is classified as a normal termination.
Required:
Determine Christines final termination pay in accordance with organisational requirements relevant to employment termination processes and payments.
Refer to Appendix 1 for organisational procedures.
Include your completed template/answer below.
Termination Pay Work papers (Pay Advice)
Employee name: Christine
Wages to: 22 November 2020
Gross Pay Calculations Amount
Wages to 22 November Unused Annual leave Loading on Unused Annual Leave Unused Personal leave Unused Long Service Leave Early Retirement Incentive TOTAL GROSS PAY PAYG Withheld Calculations Amount
Wages to 22 November Unused Annual leave Loading on Unused Annual Leave Unused Personal leave Unused Long Service Leave Early Retirement Incentive TOTAL PAYG WITHHELD FINAL NET PAY
Seek advice about the accuracy of employment termination payment calculations from an expert. Request advice from an appropriate expert about the accuracy of the calculation as per legislative requirements. Refer to (Appendix 1) Organisational policy and procedures. (As a guide your answer should be between 20 and 50 words).
Provide a copy of your email here, or attach it as an appendix.
Task 2 Reportable Fringe Benefits
You are required to complete the following two questions in the table provided.
Determine if each fringe benefit is Reportable.
Based on your answer to Part 2 Task 2 Q1, calculate the Reportable grossed-up amount to be reported using the correct 2021 FBT gross rate.
Employee Benefits Benefit Value Q1
Reportable
Yes/No Q2
Reportable Amount
Pearl East Company Motor Vehicle Private Use
Mobile Phone
Christmas Party $4,600
$800
$125 Jason Brown Loan benefit
Laptop
Christmas Party $2,960
$1,500
$125 Carl Thorne Housing (not remote area)
Tablet
Christmas Party $5,200
$800
$125 Ollie Quinn Company Motor Vehicle - Private Use
Tablet
Christmas Party $1,200
$400
$125
Task 3 Superannuation Guarantee Charge
April Hollands employer missed paying the June 2021 Quarter Superannuation Guarantee Contribution for her. The Superannuation Guarantee Charge will be paid on 7 November 2021. Wages paid to April for the June quarter were as follows:
Normal Wages$14,000.00
Overtime$2,860.00
Personal Leave$1,580.00
Annual Leave$3,410.00
Required:
Calculate the Superannuation Guarantee Charge.
Charge Items Calculations Amount $
Total
Task 4 - Establishing systems for backup and disaster recovery of payroll data
Explain two systems you could implement to address the following situations in your business. Describe the advantages of each system.
Backing - up payroll data Disaster recovery of payroll data
Part 3: Payroll Enquiries
Scenario
You are contracted as a BAS agent providing payroll services for Frasers Electrical and you have received three payroll enquiries via email.
You are required to:
Refer to Appendix 2 for organisational policy and procedure for Fraser Electrical.
Respond to each email according to organisational policies and procedures (see Appendix 2).
Write your answer in the Response Template provided. See Tasks 1 to 3 for each email and each Response Template. Answer any additional short answer questions in the Tasks.
If you are unable to answer the enquiry directly, ensure that it is referred to a designated person for resolution and follow up within the required timeframe.
When responding to each enquiry, consider:
Date the correspondence was received.
Business information, provided below.
Payroll enquiries procedure, provided below.
If unable to answer the enquiry as a BAS Agent, include who the enquiry should be referred to in your response.
The tone of your reply. Ensure it is professional and clear with correct spelling, grammar and information.
Scope of payroll services you can provide as a BAS Agent.
Legislative requirements
Organisational requirements
Tax Practitioner Boards industry code of practice, particularly confidentiality and competence.
Business Information:
The business owner is, Marcus Fraser.
All employees are full time and work 38 hours per week.
All employees are employed under the Electrical, Electronic and Communications Contracting Award 2020.
Task 1
As payroll officer, you have received the following email:
From:aphillips@frasers.com.au
Sent:Friday 23 November 2020
To:payroll@frasers.com.auSubject:Pay increase
Hi Student
I would like to inquire about my pay increase that was discussed and approved by Marcus after I completed additional training. Marcus said the pay increase will start from 19 November, but when I checked my pay for this week there was no increase. Can you advise why my pay increase was not done?
Regards
Alex Phillips
When responding to this enquiry, you need to consider who the designated person is to answer this enquiry and refer the enquiry to that person for resolution.
Task 1a Response Template:
Date: To: From: Subject: Complete follow-up action with Alex Phillips about his enquiry
Task 1b Response Template:
Date: To: From: Subject:
Task 2
As payroll officer, you have received the following email:
From:loans@thebank.com.au
Sent:Wednesday 28 November 2020
To:payroll@frasers.com.auSubject:Employment and Wages confirmation
Hi Student
Halle Stewart recently applied for a car loan with The Bank. I would like to confirm the employment status of Halle and her regular weekly wage.
We need this information by the end of the week to progress with the approval.
Regards
John
Loan Manager
You are required to reply to John. Provide information according to organisational and legislative requirements.
Task 2a Response Template:
Date: To: From: Subject: You decide to follow up with Halle in regards to the email received. Answer the following questions, based on the Task2 email received.
If Halle would like you to provide this information to The Bank, what would you require from Halle prior to supplying the requested information?
What deadline do you set yourself to follow up on this enquiry with Halle?
What deadline do you set yourself to provide the information to The Bank?
Task 3
As payroll officer, you have received the following email:
From:mfraser@frasers.com.au
Sent:Wednesday 28 November 2020
To:payroll@frasers.com.auSubject:New Employee
Hi Student
I am in the process of employing a new full-time Electrician. Matt will be an Electrical Worker Grade 6 and holds an electricians licence. I need to advise him of his hourly pay rate including licence, industry and tool allowance before I authorise it and pass it on to you to set him up in our system.
Can you please access the award to find the hourly rate for me?
Thanks!
Marcus
All electricians are employed under the Electrical, Electronic and Communications Contracting Award. Refer to the Award Pay Guide to respond to John.
You are required to reply to John. Respond to the enquiry according to organisational and legislative requirements. In your answer provide information according to organisational and legislative requirements.
Task 3 Response Template:
Date: To: From: Subject:
Appendix 1 Organisational Policies and Procedures for Part 2
An extract of the Payroll section of the organisational procedures.
Section 3.3 Termination Pay
Final Termination Pays will be calculated using the following rates and template.
The withholding rate (including Medicare Levy) for annual leave and annual leave loading is 32% for normal terminations.
Copy the template, complete and include it in the work papers of the employee to be terminated.
Termination Pay Work papers
Employee name:
Wages to:
Gross Pay Calculations Amount
Wages to Unused Annual leave Loading on Unused Annual Leave Unused Personal leave Unused Long Service Leave Early Retirement Incentive TOTAL GROSS PAY PAYG Withheld Calculations Amount
Wages to Unused Annual leave Loading on Unused Annual Leave Unused Personal leave Unused Long Service Leave Early Retirement Incentive TOTAL PAYG WITHHELD FINAL NET TERMINATION PAY The Payroll officer must ensure the accuracy of employment termination payment requirements and rates in the calculation. The officer must seek advice from professional designated persons and confirm requirements in writing. Organisational policy permits a reply email with the confirmation as sufficient.
Date:
Click or tap to enter a date.
To:
Click or tap here to enter email address or appropriate expert.
From:
Click or tap here to enter text.
Subject:
Termination payment calculations
Dear Click or tap here to enter text.Our employee Click or tap here to enter text.Attached are Click or tap here to enter text.Please review Click or tap here to enter text.Regards
Click or tap here to enter name.
Click or tap here to enter title.
Appendix 2 Organisational Policies and Procedures for Part 3
An extract of the Payroll section of the organisational procedures for Frasers Electrical
Section 5.8 Employees Payroll enquiries
Employees of Frasers Electrical are employed under the Electrical, Electronic and Communications Contracting Award 2020.
For payroll enquiries
Employees are to send payroll enquiries to payroll@frasers.com.au. This email is accessed by HR personnel on a regular basis.
Payroll enquiries will be responded to within 2 business days.
Pay increases
Outside standard award increases, Marcus Fraser approves any pay increases.
Appendix 3 Websites
Optional Websites:
https://www.tpb.gov.au/bas-agentshttps://www.fairwork.gov.au https://www.ato.gov.au/business/single-touch-payroll/how-to-reporthttps://www.ato.gov.au/Business/Reports-and-returnshttps://www.icare.nsw.gov.au/employers/employer-obligations/keeping-records#gref
