ASSESSMENT COVER SHEET Course Name: CERTIFICATE IV IN ACCOUNTING Subject Name: Accounting for Payroll & Payable (FNS403) Method: Written Test Assessment No.: 2 Weighting: 40% Due Date: Week 9 Competency Title/s: FNSBKG405 Establish and Maintain a Payroll System Student Name: ___________________________________ Student Number: ___________________________________ Student Signature: __________________________________ Date: _____/____/_____ Trainer Name: __________________ Purpose of Assessment • Written questioning on underpinning knowledge and skills • To demonstrate competency in the context of the unit Description of Assessment 1. The assessment will be in the form of a written test. The required answers should be provided on the electronic copy of the assessment which will be uploaded to moodle on the day of the examination. The time allotted for the examination will be 2 hours. 2. Please attempt all questions and show all your workings where a worksheet has been provided. 3. Submit your examination by uploading to moodle after completing the examination. The examination will be an open book exam. The questions will be a combination of practical tasks and short answers. Once assessment has commenced, no communication between students is allowed. 4. If students repeatedly talk, or are caught cheating, they are to be removed from the classroom, and reported to student administration. Mark the assessment tasks as “incomplete” 5. No students are to leave the classroom within 15 minutes of commencement of the assessment. Total Marks: 100 1 How do you ensure all employees of Faultless Fencing Pty Ltd payment arrangements and relevant documents will be confidential in accordance with organisational policy & procedures? (5 marks) 2 As a payroll officer, when and how you distribute payroll reports to management and all employees? (5 marks) 3 What legislative and regulatory requirements do you need to keep in mind when filling documents (Payroll records) for Faultless Fencing Pty Ltd? And how long you need to keep it? (5 marks) 4 How and what procedures you will follow to provide payroll related Information to external parties in accordance with organisational and legislative requirements? (5 marks) 5. If you found an error with an employee’s payroll data, who would you clarify the discrepancy with? (5 marks) 6. Nick Smith is planning on taking leave for a week, and Donna Sullivan (from another branch) has been asked to take over some of Nick’s working hours while he I away, Donna would like to know what Nick’s hourly rate of pay is. When responding to the enquiry: (5 marks) a. What do you need to consider before responding? b. Would it be appropriate for you to give Donna this information? 7. Go to the Tax Practitioners Board website and find answers to the following questions (6 marks) a. List the payroll services that are deemed to be BAS agent services. b. What are the consequences for a contract bookkeeper for performing BAS agent services without registration? c. What are the qualifications and experiences required for BAS agent registration? 8. The code of professional conduct requires BAS agent to take “reasonable care” in preparation of reports and returns and other processes required of their client. What does “reasonable care” mean? What is regarded as unreasonable? (5 marks) 9. Explain the following taxes. (6 marks) a. PAYG withholding tax b. PAYG instalment tax c. Fringe benefits tax 10. What is an Enterprise Agreement? What is a modern Award? Compare Enterprise Agreement with Modern Awards. (5 marks) 11. What are the principles of workplace privacy? (5 marks) 12. What components make up Process payroll (5 marks) 13. Calculate the net for a person earning $750.00 per week paying $102.00 tax and a child support payment of $115.00 using the 2011 PEA of $349.13 (5 Marks) 14. Calculate the payment due to an employee, Robyn Brown, based on the following: Robyn has a base wage of $19.25 per hour. She worked 38 hours at normal time, three hours at time + ½ and one hour double time and received a meal allowance of $15.60 (pre-tax). The tax (withholding) on her earnings is $145.00. (13 Marks) Employee Robyn Brown Date 19/5/11 Hours Rate Total Wages Pre Tax Allowances Pre Tax Deductions Pre Tax Earnings Tax After Tax Allowances After Tax Deductions Net Pay 15. Rebecca has a gross income of $75,000 and makes personal superannuation contributions of $3,500 each year. She has adequate private health insurance. She is considering investing $5,000 per year into superannuation via a salary sacrifice arrangement with her employer. However, she wishes to retain approximately the same take home pay. Calculate and comment on the benefit (if any) arising from the proposed salary sacrifice arrangement, by completing the table below for the 2014/15 tax year. (20 Marks) Note: Show all workings and comments Option 1 No Salary Sacrifice Option 2 Salary Packaging – Salary Sacrifice Salary Salary sacrifice contributions Gross salary Income Tax Payable Medical Levy Net salary after tax Post tax superannuation contributions Take home salary Superannuation invested Rebecca’s contributions Employer contributions Total Invested Less: Contributions tax Net superannuation invested