FNSBKG405 Establish and maintain a payroll system:
LA019443 -Assessment 1
What you have to do
|Part||Topic||Marks Available||Marks Achieved|
|Part a)||Interpreting an Award||24|
|Part b)||Payroll Reconciliation||28|
|Part c)||Privacy Obligations||6|
|Part d)||Back up and Disaster Recovery||12|
|Part e)||Set up an Employee||15|
|Part f)||Salary Packaging||5|
|Part g)||Code of Conduct||6|
|Part h)||BAS Agent Services||4|
There are eight parts in this assessment that you need to complete. Each part addresses a particular topic within the unit. To satisfactorily complete this assessment you must achieve a result of 50% or more.
If you do not achieve a satisfactory result in this assessment, you will be required to complete the assessment again. You will not be able to attempt the assessment more than twice
Jerry Clearwater has decided to employ a new adult worker (employee) Alan Long in his business as he is very busy and needs some assistance.
Alan will work full-time under the appropriate national award – MA000002 – Clerks-Private Sector Award 2010(copy available under “Assessment Information” on the OLS). Alan will report directly to Tom and Tom will authorise Alan’s pay. Tom requires you to research where necessary and provide the information/advice requested below.
|Part a) Interpreting an Award 24 Marks|
Tom would like you to check the award and advise him of;
- the minimum wage payable to a level 3 worker
- the amount of annual leave they are entitled to accrue per year
- the amount of personal leave they are entitled to accrue per year
- when they become eligible for long service leave in NSW
- the amount of long service they are entitled to accrue in NSW
- the notice period required if Alan does not work out
Part b) Payroll Reconciliation 28 Marks
Tom is concerned how the payroll data will be checked.
Using the following MYOB reports in the “Assessment Information”
- Balance Sheet
- Profit and Loss
- Payroll Registers – Summary and Detail
- Superannuation Payments by Fund
prepare a payroll reconciliation to show Tom, using the template below:
|Payroll Reconciliation as at 30 June|
|Wages and Salaries|
|“Wages and Salaries” as per Profit and Loss|
|Payroll Register Summary Reports – Wages|
|“PAYG Withholding Payable” as per Balance Sheet|
|Payroll Summary Report – Taxes|
|Superannuation Guarantee – Payroll Register Detail Report|
|Salary Sacrifice – Payroll Register Detail Report|
|Employee Additional – Payroll Register Detail Report|
|Less Payments – Superannuation Payments by Fund|
|Superannuation to be paid|
|Superannuation Payable as per Balance Sheet|
Part c) Privacy Obligations 6 Marks
He would also, like to know if he can provide information in response to a payroll enquiry by a friend of Alan’s. Advise Tom of his Privacy obligations in this situation.
Part d) Back up and Disaster Recovery 12 Marks
Tom is aware of the need for a back-up and disaster recovery system to be in place for any computerised payroll system he may introduce. List four measures you would advise Tom to implement to ensure the safety of the payroll information for a PC based system.
Part e) Set up an Employee 15 Marks
Tom has asked you to collect personal information for his new employee. Note: Use the information for Alan Long from the MYOB reports.
Tom advises the following for this data collection/personal information file (refer to the Award MA000002 – Clerks-Private Sector Award 2010):
- Alan is to be paid as a level 3 worker
- Alan will be paid as a level 4 worker from 1 September due to increased responsibilities. (Don’t worry about the year).
- First aid allowance
Complete the Employee Record card below.
|Employee Record Card|
Change of Address:
Date of Birth
|Employee No.Date Commenced:
Tax File No:
|Classification||Fortnightly Wage||Min. Hours||Hourly Rate||Date of Increase||Reason for Increase|
|Tax-free threshold claimed||Rebate||Name and $ value||Name and $ value||Name and $ value|
Part f) Salary Packaging 5 marks
If, Alan has annual wages of $80,000 and decides to salary sacrifice $5,000 from this to be paid as increased superannuation contributions, what amount would his PAYG withholding be based on?
Part g) Code of Conduct 6 Marks
Finally, he wants to make sure you are qualified to provide him this important advice. You tell him you are registered with the Tax Practitioners Board (TPB) and have to abide by a Code of Professional Conduct. Briefly explain to Tom the core principles of the Code of Professional Conduct and what sanctions may be applied if you breach it.
Part h) BAS Agent Services 4 Marks
As the inhouse payroll preparer advising Tom of his payroll liabilities are you required to be registered as a BAS agent? (2 marks)
As a self employed bookkeeper advising Tom of his payroll liabilities are you required to be registered as a BAS agent? (2 marks)