Assessment 1
What you have to do
You are required to complete the following tasks:
Task Details
Task 1 Establish & Maintain a manual Payroll
Task 2 Case Study
Templates for completing the above tasks can be downloaded from the OLS website.
The two assessments you will attempt for this unit are:
Assessment 1: a payroll system prepared manually
AND
Assessment 2: a payroll system prepared on a computer programme - MYOB.
The following information will be used by BOTH assessments.
Task 1: Establish and Maintain Payroll
Business Information
Fabulous Fast Foods is a small suburban fish & chips shop. The payroll brought forward amounts are shown on the templates.
1. The data in the following table gives further information about the business.
Business Name: Fabulous Fast Foods - insert your own name as well
ABN: 11 234 567 899
Address: 51 Wentworth Road, Strathfield NSW 2135
Accounting year: Current year, last month June 201 ,
2. Opening Balances.
The opening bank account balance is $30,000. There are no other assets or liabilities.
Employees are employed under the Fast Food Industry Award 2010 .
You will need to download this document and save it to your hard drive. You will be asked to submit this file with your assessment.
To download this award go to www.fairwork.gov.au/pages/default.aspx .
Find the State award:
State NSW
Industry: Accommodation & Food
Type: MA - Modern Award
Code: MA000003 Fast Food Industry award 2010.
To determine the PAYG tax to be deducted you will need to download the Fortnightly Tax Table for the period commencing 1 July 2011. This table does not need to be included in your assessment papers.
3. Set up Employment Classifications.
Payroll Procedures - Fabulous Fast Foods
Security
Payroll records are to be kept for 7 years and are open to inspection during the employer's business hours by an inspector of the Department of Industrial Relations.
All payroll records are stored in locked filing cabinets to protect privacy of information.
Employment Arrangements
• Employees work a 38 hour week over 5 days - 4 days x 7 ¾ hour and 1 day x 7 hour
Monday to Thursday: Between 6.30am and 6.30pm
Friday: 8.30am to 4.15pm
Lunch Break: 45 minutes
[Employees also have paid morning and afternoon tea breaks] Withholding payer No: 00 111 111 111
• Default Superannuation Fund is Fishy Super Funds
• The business lodges the Business Activity Statement monthly and includes the monthly payment of PAYG withholding.
• All employees are covered by work cover insurance (2% of gross wages) which is an employer expense. Use the Prepaid WorkCover Insurance Account as the liability account here.
• The business maintains an account with the Prawn Bank, the BSB and account Number is 111-333, 52395425. Name: Fabulous Fast Foods, Bank Code: PRA, Direct entry user ID: 71529
• All employees are paid fortnightly. The business uses electronic funds transfer when wages are to be paid into the employee's nominated bank account.
• Only round pays if the business is paying their staff in cash. Do not round pays when the business is using the electronic payments.
Payroll Procedures - Fabulous Fast Foods
• All deductions from Payroll are made by the 7th of the following month by cheque.
• Overtime is paid at time and a half (1 ½) during the week and double time (2) on the weekends. After normal finishing time during the week and after 5 hours on the weekend, employees are entitled to a 30 minute tea break and are paid a meal allowance (the amount for meal allowance can be found in the Award).
• Employees must provide the following details: Tax File Number Declaration Form with Tax File Number, address and date of birth.
• A file is kept for each employee that contains all of the above information as well as leave taken, medical information and emergency phone numbers.
• All employees have undertaken an induction session which covers Occupational Health & Safety, Obligations and Organisational Policies and Procedures.
• All enquiries should be considered in line with Privacy laws and no personal information can be provided to anyone without the express consent of the employee.
• Employees are paid in accordance with the Fast Foods Industry Award 2010.
From the above information complete the following tasks:
The business employs the following staff:
John Bream
Manager
Paid a Salary of $85,000 per year
No overtime
John is entitled to Holiday and Personal Leave
Pays -$240 per fortnight in additional superannuation payments to Fishy Superannuation Fund
Contributes $130 per fortnight to Blood & Bone Medical Fund Tax Free Threshold
Freda Bream
Senior Counter Assistant
Full time employee (38-hour week)
Level 3 (not in charge of any persons)
Pay rate: Refer to scale downloaded
Paid overtime rates and meal allowances
Entitled to Holiday and Personal Leave
Pays $160 per fortnight in additional superannuation payments to Fishy Superannuation Fund
Contributes $130 per fortnight into Blood & Bone Medical Fund
Pays $40 per fortnight union fees to F & C Union
Tax Free Threshold
Joan Ling
Counter Assistant
Full time employee (38-hour week)
Level 3 (not in charge of any persons)
Pay rate: Refer to scale downloaded
Paid overtime rates and meal allowances
Joan has a HELP Debt
Entitled to Holiday and Personal Leave
Fishy Superannuation Fund for super guarantee
Contributes $90 per fortnight into Blood & Bones Medical Fund
Pays $30 per fortnight union fees to F & C Union
Tax Free Threshold + HELP
4 LA013988, Assessment 1, FNSBKG405A, Ed1&2
Murray Cod
Cook
Part time employee (20 hours per week)
Level 2
Pay rate: Refer to scale downloaded
Paid a Shift Allowance ($16.20 per week - taxable and included in Gross
Wages and Superannuation)
Entitled to Holiday and Personal Leave
Fishy Superannuation Fund
Contributes $60 per fortnight into Blood & Bone Medical Fund
Pays $16 per fortnight union fees to F & C Union
Tax Free Threshold
Ray Sting Junior Cook
Casual Employee (10 hours per week)
Level 1
Pay rate: Refer to scale downloaded
Ray is not paid any allowances
Ray is not entitled to Holiday and Personal Leave
Fishy Superannuation Fund
This is Ray's 2nd Job - he cannot claim Tax Free Threshold
Note: take care - a different rate is relevant for part-time and casual employees.
Employee Data
Name John Bream Freda Bream Joan Ling Murray Cod Ray Sting
Card Number 001 002 003 004 005
Address 197 Station Street, Flemington NSW 2221 197 Station Street, Flemington NSW 2221 1 Good Street, Sydney
NSW 2000 1 High Street Castle Hill
NSW 2154 10 George Street, Sydney
NSW 2000
Phone No 222 3211 222 3211 222 3331 222 5291 222 6621
Date of Birth 16/11/1945 21/5/1948 6/2/1950 18/3/1982 29/3/1988
Start date 16/11/1970 17/12/1970 1/10/1992 6/5/2001 7/8/2008
Tax File Number 211 656 552 221 025 650 234 879 654 111 444 555 222 111 777
BSB/Account No. 2 345-999 12345678 345-999 12345678 299-123 567891011 511-622 113559910 221-162 998881234
Bank Account Name John & Freda Bream John & Freda Bream Joan Ling M & A Cod Ray Sting & Michelle Perch
Bank Name Prawn Bank Prawn Bank Squid Bank Squid Bank Whitting Bank
Super Employee Membership No. 1456781 1456782 1456783 1456784 1456785
BSB/Account No. 1 123-456 593784
Bank Account Name John & Freda Bream Loan Account
Bank Name St George Bank
Amount $400
6 LA013988, Assessment 1, FNSBKG405A, Ed1&2
Employee Year to date figures (Pay History)
Name John Bream Freda Bream Joan Ling Murray Cod Ray Sting
Base Pay 52009 27800 25200 10200 2890
Overtime (1.5) 591 1542
Meal Allowance 108 280
Shift Allowance 598
Holiday Leave Payments $ 800
Personal Leave Payments $ 500 290 $280
Medical Fund 820 820 680 120
Additional Super 2800 2800
Dedicated
Workers Union 420 420 420
Tax Paid -
PAYG 18113 13929 9267 5331 520
Holiday Leave - Hrs 20 20 28 10
Personal Leave - Hrs 12 12 12 8
Superannuation Guarantee 4680 2412 2268 918 260
Work cover insurance 1040 536 504 204 58
Fortnight 1 - 1 March to 14 March 2012
Payroll for Week 1 - (1/3/12 - 7/3/12)
• Process the weekly pays for all employees.
• Pay slips need to be prepared.
• Ray Sting only worked 8 hours this week.
Payroll for Week 2 - (8/3/12 - 14/3/12)
• Process the weekly pays for all employees.
• Joan Ling is to be paid 4 hours overtime at time and a half, and one meal allowance (see award).
• Murray Cod is to be paid one day Personal Leave (8 hours).
• Pay slips need to be prepared.
• Murray Cod submitted his resignation on 2 March to take effect at the close of business on 14 March 2012.
Fortnight 2 - 15 March to 28 March 2012
Payroll for Week 3 - (15/3/12 - 21/3/12)
• John Bream increased his additional superannuation from $240 to $480 per fortnight.
• Freda Bream receives a pay increase to level 3 (in charge of 2 or more persons) effective from 15 March 2012
Payroll for Week 4 - (22/3/12 - 28/3/12)
• Joan Ling is to be paid 4 hours overtime at double time (no meal allowance payable)
8 LA013988, Assessment 1, FNSBKG405A, Ed1&2
From the information given you are required to complete:
1. Employee Record Cards
2. Employee Earnings Cards
3. Payroll Summary for the periods ending 14 March AND 28 March 2012.
4. General Journal entry for the pay period ending 14 March 2012 only.
5. Pay Advice slips for the fortnight ending 14 March 2012 only.
Task 2: Case study
Handle Payroll Enquiries
You are required to answer the following questions in short written answer form. Dot point is also acceptable as long as all parts of each question are answered.
1. Joan Ling has contacted you asking for the balance of her holiday pay (accrued and/or due) as at 28 March 2012.
How much Holiday leave would you tell her she has?
2. The Manager is checking the cash flow for the period and can't find the figures for the payroll to date this month. He asks you to provide him with the following information:
• The superannuation payable on the staff wages for the two weeks
• The PAYG tax payable for the two weeks
What figures would you provide to the Manager?
3. John Bream has contacted you requesting details of his total superannuation payments.
He also requested, on behalf of his wife, details of her total superannuation payments. He would like a total year to date figure for him and his wife.
What advice would you provide?
4. Freda Bream has advised that she may need to take some additional personal leave for a hospital stay in the next few weeks. She thinks she might need to take about two days for the hospital stay and maybe another day or two after that at home. She asks you to check that she will have enough personal leave.
What advice would you give her?
5. Ray Sting has a query regarding his superannuation. He is concerned that no superannuation has been calculated on his Pay Slip for 14 March 2012.
What advice would you give him?