Section 1 – Assessment Task Overview and Description
Based on your readings and additional research that you are required to complete Part 1 and Part 2 the assignment as instructed at the document.
Stationery is provided in a separate document.
Assessment Description
This assessment will demonstrate your understanding of the: -
• payroll process, including the calculation and recording of weekly pays using manual system
• the associated theoretical concepts that underpin the payroll process. You should be able to demonstrate the following outcomes: -
• Use employee source data to calculate and record and reconcile payroll according to legislative requirements
• Prepare the payroll, including the payroll register and associated journal
• Recording payroll data
• Handle a payroll enquiry
• Maintain payroll information
Company Policies and Procedures document is provided in the separate document.
Section 2 – Assessment Task Submission Information
Submission Details Due date: 20/09/2020
1. The assessment task must be submitted via Canvas or directly to the teacher with an assessment cover sheet.
2. Ensure to include on the front page or in the header or footer of your assessment:
? your name ? student ID
? your teacher’s name
? the unit code/s and title/s
? the assessment task title
3. Submissions received after the submission date must be approved by your teacher.
Summary of Evidence to be Submitted
? Completed payroll registers for 4 weeks
? Completed General Journal
? Completed Cash Payments Journal
? Answered theory questions for each question given in Part 2
The task will be assessed as satisfactory when all of the required evidence listed has been satisfactorily demonstrated.
Summary of Evidence to be Submitted
* If applicable, for graded units, the task must be satisfactorily completed before marks will be allocated. Refer to your unit outline for more information.
Section 3 – Assessment Task Criteria and Outcome
All items/criteria must be demonstrated satisfactorily to achieve this task. The items/criteria for this activity will be assessed as S – Satisfactory or US – Unsatisfactory.
Items/criteria
1 Use employee source data to calculate and record and reconcile payroll according to legislative requirements
2 Enter employee pay period details in payroll system in line with source data
3 Prepare the Payroll Register for week 1
4 Prepare the Payroll Register for week 2
5 Prepare the Payroll Register for week 3
6 Prepare the Payroll Register for week 4
7 Calculate Superannuation Guarantee
8 Prepare the General Journal entries to record the payroll for each of the 4 weeks
9 Prepare the Cash payments journal entry to record the payment of the payroll liabilities at the end of June
10 Review payroll data and clarify discrepancies with designated persons (teacher)
11 Conduct payroll preparation within designated timeframes and according to organisational policy and procedures
12 Update records and systems in line with salary reviews
13 Respond to payroll enquiries, provide information and complete follow-up action according to organisational and legislative requirements
14 Maintain information and record keeping relating to payroll function according to current legislative and regulatory
Section 4 – General Assessment Information
Refer to the Course Information section in Canvas.
Section 5 – Instructions
Comprehensive Assessment - Smart Jewellery Co Scenario
Smart Jewellery Co is a small company that sells handmade jewellery. The company employs 4 people – Office Manager, Bookkeeper (part -time), Sales Manager and Sales Assistant.
Ruby Shimmer, the Office Manager, is required to authorize/approve payroll documentation.
Additional Information
Payroll Calendar: Weekly
• Overtime:
o According to company policies all overtime is done on Mondays o All overtime is to be paid at 1½ times the ordinary rate of pay applicable for the first 3 hours and double time after that – per overtime shift.
• All employees are entitled to annual leave loading.
• Opal is getting married in July and is taking Annual Leave. In addition to her normal week earnings on June 24th, she is also to be paid 4 weeks annual leave in advance.
• Payroll liabilities are paid on the last day of each month
• Employees are paid by Direct Debit each week to their nominated bank account
Smart Jewellery Co Payroll Information
PART 1 – Payroll Calculation
Employee details
Name Ruby Shimmer Stefan Peterson Coral Digby Opal Ridgemont
Position Office Manager Bookkeeper Sales Manager Sales Assistant
Date of Birth 1/4/1980 14/6/1985 15/9/1985 20/5/1998
Address 25 Topaz St
Quartz Ville VIC
3231 78 Union Rd
Klondyke VIC
3212 9 Sapphire Rd
Brandbank VIC
3266 54 Greer St
Emerald City
VIC 3221
Start date 8/2/2014 1/3/2015 1/1/2011 1/6/2018
Current Wage Rate $52,364.00 p.a. $30.00 per hour $35.00 per hour $22.00 per hour
Taxes
Tax File Number Yes Yes Yes Yes
Employment Basis Full- time Part- Time Full- time Full- time
Tax Free Threshold Yes No Yes Yes
HELP debt No Yes Yes No
Tax Offsets Yes $3,554 No No No
Authorised to approve ? ? ? ?
Weekly Deductions
Union Fees 20 10 $20.00 $20.00
Medical $115.00 $85.00
Superannuation $100
Week 1
Extracts from Employee Approved Timesheets for the week ending 9.6.2021
Employees: Ruby Stefan Coral Opal
Week
Started Ord Hrs O/t Ord Hrs O/t Ord Hrs O/t Ord Hrs O/t
June 3rd 38 n/a 19 3 38 5 38 6
Week 2
Extracts from Employee Approved Timesheets for the week ending 16.6.2021
Employees: Ruby Stefan Coral Opal
Week Started Ord Hrs O/t Ord Hrs O/t Personal Leave Ord Hrs O/t Ord Hrs O/t
June 10th 38 n/a 11.4 4 7.6 38 3 38 5
Week 3
Extracts from Employee Approved Timesheets for the week ending 23.6.2021
Employees: Ruby Stefan Coral Opal
Week Started Ord Hrs O/t Ord Hrs O/t Ord Hrs O/t Ord Hrs O/t
June 17th 38 n/a 19 5 38 4 38 6
Week 4
Annual Performance Review process
After Annual Performance Review process all employees will receive Salary/Wages increase of 5% from 24.06.2021
Update Employees information with new salaries/wages rates
Ruby Stefan Coral Opal
Current Wage Rate $52,364.00 p.a. $30.00 per hour $35.00 per hour $22.00 per hour
Add New Wage Rate
Extracts from Employee Approved Timesheets for the week ending 30.6.2021
Employees: Ruby Stefan Coral Opal
Week Started Ord Hrs O/t Ord Hrs O/t Ord Hrs O/t Ord Hrs O/t Annual leave
June 24th 38 19 2 38 4 38 5 4 weeks
Instructions
You are expected to tax all employees’ using the Weekly Tax Table (for payments made on or after 1 July 2018) and Study-and-training-support-loans-weekly-tax-table-2020-21 weekly tax tables.
You will need to download the tax tables from assessment task and ensure you calculate all Tax, HELP and Offset amounts in accordance with the current rates.
Download FNSTPB402 Stationary for Comprehensive Assessment file and complete the followings:
You are required to:
1. Prepare the Payroll Register for each of the 4 weeks
a. Review employee’s data and conduct payroll preparation within designated timeframes
b. Use employee source data to calculate, record and reconcile payroll according to legislative requirements
c. Reconcile total payments for each pay period, and review and correct irregularities or refer them to your teacher for resolution
d. Obtain authorisation of payroll
2. Calculate the amount payable to each employee’s superannuation fund arising from the Superannuation Guarantee
3. Prepare the General Journal and Cash Payments journal entries to record the payroll for each of the 4 weeks
4. Prepare the Cash payments journal entry to record the payment of the payroll liabilities at the end of June
Part 2 - Questions
Answer the following questions. You have to download Part 2 Questions file.
Question 1
Coral Digby has started at Smart Jewellery Co on 1 January 2013.
She would like to find out how much Long Service Leave is accrued on 1 July 2021.
Note: Use Victorian Rules to calculate Long Service Leave. Find information from LSL-Act-2018Fact-Sheet-02-taking-LSL file.
Your workings:
Check your answer with Victorian long service leave calculator:
https://www.business.vic.gov.au/hiring-and-managing-staff/long-service-leavevictoria/calculatelongserviceleave
Question 2
Ruby Shimmer decided that she will terminate employment due to the health problems. Ruby started her employment on 8 February 2014.
On 30 July 2021 she will have 76 hours of unused annual leave and 6.5 weeks of unused long service leave
Ruby’s Pay details
-Weekly salary – $1,057.35
-She claimed Tax Free threshold (please note; we will not include with tax offsets to simplify the calculations)
-Entitled to leave loading
Calculate Ruby’s final pay
Gross Pay
Salary on 28/7/2021
Unused Annual leave plus Loading on Unused Annual leave
Unused service leave
Total Gross Pay
PAYG Withheld
Tax Salary on 30/7/2021
Unused Annual leave plus Loading
on Unused Annual leave (marginal rate)
Unused service leave (marginal rate)
Total PAYG Withheld
Net Final Pay
Question 3
An employee has approached you (as the payroll officer) and queried about his current leave entitlements. What is the process should you adopt to handle this enquiry?
Your answer:
1.
Question 4
Coral Digby has queried her pay on 9.06.2021 stating that she paid too much tax. You have to respond to Coral in writing.
Dear Coral,