The following questions are based on the material in Chapter 1: The Payroll System
Q1a: To which employees and employers do the National Employment Standards apply?
Q1b: What is the purpose of the National Employment Standards?
Q1c: List all of the National Employment Standards.
Q2a: Explain how work undertaken by the payroll function may be deemed to be a BAS Service?
Q2b: Briefly explain what is the Tax Agent Services Act 2009 Code of Professional Conduct and to whom does it apply?
The following questions are based on the material in Chapter 2: Payroll Calculations
Q3: Madeline is taking 4 weeks annual leave and has requested that she be paid in advance. She is entitled to 4 weeks annual leave with 17.5% leave loading. Madeline’s weekly wage is $850. She has supplied her tax file number and claims the tax-free threshold as well as $600 in tax offsets.
Required:
Using the excerpts of the Tax Tables and Tax Offsets reckoner (provided below), calculate Madeline’s net annual leave payable for this pay (show your workings).
Weekly tax tables (excerpt):
Madeline’s net annual leave pay (show your workings):
The following questions are based on the material in Chapter 3: Processing Payroll
Q4: Regal Industries provides you with the following information for the payroll week ended 14 December:
Name
Hours Worked
Rate per hour
PAYG Withheld
A Harris
40
$17.00
$175.00
B Dawe
45
$15.00
$57.00
C Carter
35
$22.00
$103.00
– Assume there are 35 hours in a normal working week; excess hours are paid at time and a half.
– Additional personal superannuation contributions were deducted for:
Harris $32.00
Carter $48.00
– All employees are paid in a batch by electronic transfer.
– For the purposes of this exercise, you are not required to calculate employer Superannuation Guarantee.
Required:
4a. Prepare the Payroll Register for the pay week ended 14 December.
Regal Industries – Payroll Register – week ended 14 December
Hours
Earnings $
Deductions $
Name
Rate $
Ordinary
Times 1.5
Ordinary $
Times 1.5 $
Gross Pay $
Tax $
Super $
Net Pay $
Harris
$17
Dawe
$15
Carter
$22
Total
4b. Prepare the Journal Entry to record the payroll for the week ended 14 December.
General Journal
Date
Particulars
Debit
Credit
Payroll for week ending 14 December (as per Payroll Register)
4c. Prepare the Journal Entry to record the payment of net wages by EFT batch.
General Journal
Date
Particulars
Debit
Credit
Wages paid by EFT batch for week ending 14 December
The following questions are based on the material in
Chapter 4: Entitlements & Reporting Procedures
Q 5(a):
Helen is a full-time hourly based employee, working the normal working week of 38 hours. She is paid fortnightly. Her leave entitlements apply as per the National Employment Standards.
After working a normal fortnight, how many hours of annual leave and hours of personal leave will Helen have accrued for that period? (Show your workings).
Q 5(b):
Quick Smart Builders pays its employees monthly and provides you with the following information for the month of July:
Employee
Ordinary Wages (gross)
Annual Leave /
Personal Leave
Overtime
Allowances
A. Smith
(Office Manager)
$750.00
$250.00
B. Jones
(Construction worker)
$390.00
$70.00 (Tool)
C. Chant
(Receptionist)
$440.00
$100.00
Required:
5b(i). Calculate the employer Superannuation Guarantee (assume 9.50%) for each employee the month (show your workings).
Smith:
Jones:
Chant:
5b(ii). Prepare the general journal entry to record the superannuation expense and liability for the month.
General Journal
Date
Particulars
Debit
Credit
Employer Superannuation Guarantee for July
Q 6:
Kenworth Constructions have provided the following information for the December quarter:
· Gross salaries and wages (before tax) $170,000
· Allowances (taxable and not included in gross salaries & wages) $6,000.
· Bonuses (before tax) $14,000
· PAYG tax on salaries & wages $43,000
· PAYG tax on Bonuses $3,000
· Contractor invoices of $15,000 (before withholding) subject to a voluntary withholding at 20%.
· Supplier invoice of $1,000 (before withholding) subject to 47% withholding because supplier did not have an ABN.
Required:
Complete the ‘PAYG Tax Withheld’ form for the December quarter and show your workings for each W label.
Your workings for each W label:
W1:
W2:
W4:
W3:
W5:
PAYG tax withheld
Total salary, wages and
other payments
W1
$
Amounts withheld from payments shown at W1
W2
$
Amounts withheld where no ABN is quoted
W4
$
Other amounts withheld (excluding any amount shown at W2 or W4)
W3
$
Total amounts withheld
(W2 + W4 + W3)
W5
$
