Manage payroll

Written Questions and Answers

 

Assessment is all about collecting evidence and making decisions as to whether or not a student has achieved competency. Students are required to answer all the questions. Evidence is information gathered that provides proof of competency. While evidence must be sufficient, trainers and assessors must focus on the quality of evidence rather than the quantity of evidence.

 

  1. What are some security procedures to protect information and possible approaches for payroll information? List 5 different options and give a brief explanation for each.

 

  1. Audit trails
  2. Company passwords
  3. Ensuring security passwords and keys
  4. Providing secure bank details
  5. Backup files and storage off-site

Review and revise ( elaborate ) – 05 Jan 2022 – RL

 

  1. Identify the key provisions of relevant legislation standards and codes that may affect payroll operations.?  Please ensure you address taxation legislation, privacy legislation, anti-discrimination legislation & WHS legislation.

 

Ethical principles might affect payroll operations. 

Taxation legislation: It might include legislation from the government that manages rules for payroll.

Privacy legislation: The personal payroll cannot be viewed by others.

Anti-discrimination: Any race or sex cannot affect the payroll.

Acceptable answers, main points covered 05 Jan 2022 – RL

 

  1. What procedures guarantee substantiation of claims for allowances? 

 

First of all, you need a clear definition of allowances and explanation for the basis of allowances. Next, you need an application of process of receiving the allowances. Lastly, you need to download the application and the application need to be signed by the manager.

Review and revise ( elaborate ) – 05 Jan 2022 – RL

 

  1. As a manager, what control measures do you need to establish to safeguard organisation’s financial resources in accordance with legislative and organisational requirements?
I might protect the organisation’s financial resources by being careful of theft and also preventing errors at the point of the entry of the source.

Passwords will have to be changed every 6 month and the old password will not be able to be reused any longer.

Any actions taken on the file will be recorded and can only be checked when something goes wrong.

Review and revise ( elaborate ) – 05 Jan 2022 – RL

 

  1. What are the payroll systems and statutory obligations to ensure compliance for the following:

Workplace Relations Regulations 2006; Fair Works Act 2009; National Employment Standards; Superannuation Guarantee (Admin) Act 1992; Income Tax; Payroll Tax; Paying Payroll Liabilities

  1. A system that calculates the finest rates of pay.
  2. A system that calculates the finest rates of pay.
  3. A system that determined conditions and timeline of an employee for payments to employee.
  4. This system added minimum payments into its calculation and need each employee’s superannuation fund to determine their fund.
  5. Using form to determine the correct data is used and appropriate tax deduction tables are used
  6. A system that calculates the total amount of payments giving to employees and calculate how much tax are needed to pay to the government.
  7. System that aware dates of paying.

Review and revise ( elaborate – Workplace Relations Regulations 2006; Fair Works Act 2009; National Employment Standards; Superannuation Guarantee (Admin) Act 1992; Income Tax; Payroll Tax; Paying Payroll Liabilities  ) – 05 Jan 2022 – RL

 

  1. How would you use nominated industrial awards, contracts and government legislation to calculate gross pay and annual salaries? Ensure you describe the type of employment contract e.g. AWAs, EAs etc in your explanation.
The government legislations are the setting of the wages, such as minimum wages you can give to employees. AWA listed the detail of the employee’s salary, wages. Awards and bonuses will be included in the AWA. Combining all the thing we have list; we can calculate the gross pay of an employee.

Review and revise ( elaborate ) – 05 Jan 2022 – RL

 

  1. As part of a manager’s role, you need to understand how to calculate statutory and voluntary deductions using government and employee documentation.  Please ensure as part of your answer that you give a minimum of 4 example descriptions of deductions such as Medicare, HELP, Child Support etc.  

 

Medicare: Taxpayers are liable for a contribution of health care for the country, for at least 2% of gross pay.

Help: Taxpayers that earns enough to repay their education fee.

SFSS: Any taxpayer with a SFSS debt is required ti pay back the loan.

Child support payments: People who didn’t pay for child support payments might find that their salary and wages being deduct by child support agency.

Acceptable answers, main points covered 05 Jan 2022 – RL

 

  1. What do you need to consider when providing payroll data to payroll processor for calculation within designated timelines?  You will need to include a brief explanation on each of the elements e.g. Prepare a payroll register; Key organisational timelines; Fringe benefits tax; Other payroll deadlines including ATO, TFN declaration, PAYG withholding; Employment termination payments; Employer superannuation contributions; and Business Activity statement (BAS).

 

Prepare a payroll register: Including details such as pay rate, allowances, deductions, the numbers of hours worked.

Key organisational timelines: To pay workers on time, there might be penalties if paying workers late.

To provide a payroll data to payroll processor to calculation within designated timelines, you need to first prepare a payroll register that include details of the worker and pay them on time.

Review and revise ( elaborate ) – 05 Jan 2022 – RL

 

  1. Expand on how you check the payroll and authorise salaries and wages for payment in accordance with organisational policy and procedures.

 

A payroll register should have no errors, to do so, you must make sure that the total of the entries in the total column must equal the total of the entries of next pay column. If they don’t agree, there must be an error in the register, if they agree, there won’t be an error

Review and revise ( elaborate ) – 05 Jan 2022 – RL.

 

  1. Explain how and what the procedures are to reconcile total wages for pay period, check and correct irregularities and refer to designated persons for resolution. As part of your response, please ensure you include at least 3 different circumstances that could affect the organisation’s payroll.

 

Employee numbers: Checking the numbers of the employees are very crucial.

Normal and overtime: To check the leaving time and working time of employees, if the hours worked and the hours paid are not equal, the manager should be informed and check weather if the calculation have any mistakes in it.

Number of cheques: This will ensure the person preparing the pays or cheques does not make mistakes.

Review and revise ( elaborate ) – 05 Jan 2022 – RL

 

  1. How do you deal with salary, wage and related enquiries in accordance with organisational policy and procedures? Please ensure you include an explanation on legislative requirements, methods of handling inquiries, communicating appropriately, the resources to handle inquiries and support from the ATO including the online tax calculator.

 

Some companies allow employees to check their personal payments determined by their work hour, but some companies don’t, and this often leads to employees questioning the amount they are paid. What the company have to deal with salary, wage and related enquiries is to first if all following the legislative requirements, and then decide which way to handle inquires. For conclusion, it is important to deliver a proper response.

Review and revise ( elaborate ) – 05 Jan 2022 – RL

 

  1. How do you process declaration forms for new and existing employees in accordance with Australian Taxation Office requirements?

 

The new employee must finish section A of the declaration form, it includes personal information of him or herself, and section B will have to be finish by the employer.

Review and revise ( elaborate ) – 05 Jan 2022 – RL

 

  1. Explain the periodic deductions process within designated timelines and identify who are the nominated creditors.  

 

These deductions made from salaries and wages can be statutory or voluntary, so the employee must give permission for the employer to withhold the relevant amount to forward to the nominated creditors, the nominated creditors include government bodies such as ATO and Centrelink.

Review and revise ( elaborate ) – 05 Jan 2022 – RL

 

  1. When preparing and dispatching payments to government authorities accurately and in accordance with relevant government legislation, what are the key considerations? Please ensure you include the formula for (W5) Total Amounts Withheld as part of your response.
You need to consider salaries and wages paid to employees; payments made to entitles conducting business with organisation where supplier has not provided an ABN relevant to the business activities. W2+W4 and W3 is the other amounts withheld from payments.

Review and revise ( elaborate ) – 05 Jan 2022 – RL

 

  1. Describe how you would calculate and transcribe group tax amounts and make payments in accordance with taxation procedures.  Ensure you provide an explanation on how to calculate PAYG withholding; the weekly tax table, and how to calculate tax offsets, FBT, HELP debt tax and financial supplement debt tax.

 

The PAYG withholding is the key statutory deduction it is the individual amounts withheld for each pay period are accumulated for each employee and paid as a lump sum to the ATO.

The weekly tax table is a combination of Amounts withheld from salaries or wages and other payments, Amounts withheld where no ABN is quoted on invoices and other amounts withheld.

Review and revise ( elaborate ) – 05 Jan 2022 – RL

 

  1. What is involved in preparing and reconciling employee group certificate amounts from salary records?  Be sure to include an explanation on the end of payroll year checks and processes.

 

Employee details, Employee entitlements, Pays completed, Reconcile payroll, Payroll register, Payment summaries.

Review and revise ( elaborate ) – 05 Jan 2022 – RL

 

Assessment Outcome Written Questions

Question Correct ()
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Assessed by ______________________________________________  

 

Assessor Signature_________________________ Date _________

 

Assessment 2 – Case Studies 1 & 2

  1. You work as a payroll officer for ABC Company and you have extracted the information below from the company history cards:

 

Name Staff A Staff B Staff C
Employee number 1 2 3
Address 1 Sample Street, Sunnyplace 2 Sample Street, Sunnyplace 3 Sample Street, Sunnyplace
Date of Birth 14/ 12/1985 9/12/1984 12/06/1980
Employment status Full-time Casual Full-time
Occupation Supervisor Reception Team leader
Date Commenced 1/01/2004 2/02/2012 3/03/2000
Current wage rate or annual salary $24/ hour $16/ hour $18/ hour

 

Note that employees are paid under an award that requires 38 hours per week of work (for 7.60 hours per day, for 5 days). Any employees who work over 7.60 hours per day will receive overtime payment at 1.5 times the normal rate on Monday to Friday and any work on Saturday is paid at 1.5 times. Sunday is double time. This is week 5 and the ending work date is 26/02/20XX.

 

You are required to complete the timesheets and calculate the total gross payment amount for all 3 staff members. 

 

The 3 staff members working hours are:

 

Day Staff A Staff B Staff C
Monday 8.30am to 6.30 pm with 1-hour break 8.00am to 6.00 pm with 1-hour break 9.30am to 6.30pm with 1-hour break
Tuesday 9.00am to 5.30 pm with 0.5 hours break 8.30am to 5.30 pm with 1-hour break 8.00am to 5.30pm with 1-hour break
Wednesday 8.30am to 6.00 pm with 1-hour break 8.30am to 7.30pm with 1-hour break 7.30am to 5.00pm with 1-hour break
Thursday 9.00am to 7.00pm with 1-hour break 9.00am to 5.10 pm with 0.5 hours break 8.00am to 5.00pm with 1-hour break
Friday 8.30am to 5.30pm with 0.5 hours break 8.30am to 5.30pm with 0.5 hours break 8.30am to 5.30pm with 1-hour break
Saturday 9.00am to 2.00 pm with 0.5 hours break
Sunday 9.00am to 1.00pm

  

  Sample timesheet:

Employee name:  Staff A

Week Number: 5

Employee Number: 1

Week Ending:

Day Starting time Finishing time Time off/ meals Total hours/ minutes Normal time hours Overtime hours
Monday 8:30 6:30 1h 9h 7.6 1.4
Tuesday 9:00 5:30 30m 8h 7.6 0.4
Wednesday 8:30 6:00 1h 8.5h 7.6 0.9
Thursday 9:00 7:00 1h 9h 7.6 1.4
Friday 8:30 5:30 0.5h 8.5h 7.6 0.9
Saturday 9:00 2:00 0.5h 4.5h 7.6 0
Sunday
Totals
Total hours worked during the week:47.5
Total gross payment:1200

Review and revise – 05 Jan 2022 – RL

 

  Sample timesheet:

Employee name:  Staff B

Week Number:

Employee Number: 

Week Ending:

Day Starting time Finishing time Time off/ meals Total hours/ minutes Normal time hours Overtime hours
Monday 8:00 6:00 1 9 7.6 1.4
Tuesday 8:30 5:30 1 8 7.6 0.4
Wednesday 8:30 7:30 1 10 7.6 2.4
Thursday 9:00 5:10 0.5 7h40m 7.6 0
Friday 8:30 5:30 0.5 8.5 7.6 0.9
Saturday
Sunday
Totals
Total hours worked during the week:43h10m
Total gross payment:731

Review and revise – 05 Jan 2022 – RL

  Sample timesheet:

Employee name:  Staff C

Week Number:

Employee Number: 

Week Ending:

Day Starting time Finishing time Time off/ meals Total hours/ minutes Normal time hours Overtime hours
Monday 9:30 6:30 1 8 7.6 0.4
Tuesday 8:00 5:30 1 8.5 7.6 0.9
Wednesday 7:30 5:00 1 8.5 7.6 0.9
Thursday 8:00 5:00 1 8 7.6 0.4
Friday 8:30 5:30 1 8 7.6 0.4
Saturday
Sunday 9:00 1:00 4 7.6 0
Totals
Total hours worked during the week:45
Total gross payment:909

 

Review and revise – 05 Jan 2022 – RL

 

  1. The following tax and superannuation details have been extracted from the employee’s history card. You are required to prepare payroll and in accordance with organisation policy and procedures. Please use information from both Case Studies 1 and 2 to prepare staff A’s employee earnings card, cash analysis sheet and Staff A’s employee pay advice slip. The relevant templates have been provided. 

 

Name Staff A Staff B Staff C
Deductions:

Health insurance

Superannuation

$22 per week

$25 per week

$12 per week

Nil

Nil

Nil

 

ABC Company

Payroll register for week ending:

Employee Name Totals
Staff A Staff B Staff C
HOURS WORKED
Normal hours 42.5 38h4m 38
Overtime hours (x 1.5) 5 5.1 3
Overtime hours (x 2) 0 0 4
ENTITLEMENTS
Normal pay ($) 1020 609 684
Overtime hours x 1.5 x normal pay rate ($) 180 122 81
Overtime hours x 2 x
normal pay rate ($)
0 0 144
GROSS PAY ($) 1200 731 909
DEDUCTIONS ($)
Income tax ($) 271 74 151 496
Medical association ($) 22 12 0
Superannuation ($) 25 0 0
TOTAL DEDUCTIONS ($) 318 86 151
NET PAY ($) 882 645 758

 

Review and revise – 05 Jan 2022 – RL

 

Employee earnings card for year ending: 26.02.20XX
Name:

Employee no:

Address:

Pay period ending Gross pay Deductions Net pay

$

Accumulated totals
Date Normal $ 1.5 $ 2.0 $ Gross pay

$

PAYG tax

$

Medical ass’n

$

Super

$

Total
$
Gross pay $ Tax withheld    $
Balances 10,000 3300
26.02.XX

 

Review and revise – 05 Jan 2022 – RL

 

ABC Company

Cash analysis sheet for week ending: 26.02.XX

Employee name Net pay Notes Coins
$100 $50 $20 $10 $5 $2 $1 50¢ 20¢ 10¢
Staff A 8 1 1 1 1
Staff B 6 2 1
Staff C 7 1 4
Totals 21 2 3 1 1 5 0 0 0 0 0

Review and revise – 05 Jan 2022 – RL

 

ABC Company pay slip advice slip

Employee no:       Pay period ending: 

Employee name: 

 

Wages, overtime and allowances Hours Rate Amount

  Wages

Overtime

Allowances N/A N/A N/A

      

Payment summary This pay

Wages

Gross pay

PAYG tax

Deductions

Net pay

 

Deductions Amount

PAYG tax

Superannuation

Health insurance

Total deductions

 

Review and revise – 05 Jan 2022 – RL

Assessor needs to use the below checklist to assess the 2 Case Studies.

Items Yes/ No Comments
Case Study 1 – Timesheet Staff A
Case Study 1 – Timesheet Staff B
Case Study 1 – Timesheet Staff C
Case Study 2 – Payroll Register
Case Study 2 – Employee Earnings Card – Staff A
Case Study 2 – Cash Analysis Sheet
Case Study 2 – Company Pay Slip Advice Slip – Staff A

 

Assessed by ______________________________________________  

 

Assessor Signature_________________________ Date _________

 

Business, Accounting and Finance 

BSBFIM502 Manage payroll

 

Assessment Outcome Record 

In order to be deemed competent in this unit, the candidate must answer all written questions correctly and satisfactorily complete all practical tasks.  In order to complete all practical tasks, all Observation Criteria need to be satisfied, i.e. demonstrated and marked as an ‘S’.  The task summary outcome must be noted as satisfactory to note the demonstration of a satisfactory outcome for each practical task requirement.

Student Name
Not Yet Competent   Competent  
Comments
Assessor (Name)
Assessor Signature
Date

 

Answer

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