Unit/s assessed:
FNSPAY501 process salary packaging arrangements and additional allowances in payroll
FNSPAY502 Process superannuation payments in payroll
Assessment name:
FNSPAY501/ FNSPAY502 Assignment
Type of Assessment
This summative assessment will enable your assessor to make a judgement of competency based on the submission of your completed assessments against the requirements of the unit/s of competency in this module.
Benchmark
The Assessment Benchmark developed for each unit of competency is the evidence criteria used to judge the quality of performance (i.e., the assessment decision-making rules). Assessors use these benchmarks to make judgements on whether competency has been achieved and to determine if you have performed to the standard expected to meet the unit requirements.
Reasonable Adjustment
Where appropriate Monarch Institute will allow flexibility in the way in which each unit is assessed based on the needs of an individual.
Assessment Coding
Assessment of this course is established on competency-based principles:
S = Satisfactory
NS = Not Satisfactory
If you fail to perform satisfactorily for the assessment in the prescribed way you may be assessed as ‘Not Satisfactory. You are required to be assessed as ‘Satisfactory’ in all assessments for each unit of competency.
Re-assessment
Your assessment can be submitted after you have reviewed the learning materials and practiced enough to feel confident in your resubmission. You have two weeks from your last submission feedback to resubmit. You are re-assessed in only the areas where your assessor has indicated you were initially assessed as NS. It is at the assessor’s discretion to re-assess the entire assessment should an overall understanding not be demonstrated. When you are re-assessed as ‘satisfactory’ after re-submission you will achieve competency for this assessment.
Declaration of Understanding and Authenticity
I acknowledge the assessment process has been explained and agree that I am ready to undertake assessment. I am aware of where to find the assessor’s feedback for the assessment. I am aware of the appeals process, should the need arise. I also understand I must be assessed as ‘satisfactory’ in all parts of the assessment/s to gain an overall competent result for the unit/s of competency. If I am found to be NS after a second attempt, it is at the assessor’s discretion whether I may be permitted one final attempt. I am aware that a ‘not competent’ final outcome means I may incur fees for re-enrolment in the unit/s.
I certify that the attached material is my original work. No other person’s work has been used without due acknowledgement. I understand that the work submitted may be reproduced and/or communicated for the purpose of detecting plagiarism. I understand a person found responsible for academic misconduct will be subject to disciplinary action (refer to Student Information Handbook).
*I understand that by typing my name or inserting a digital signature into this box that I agree and am bound by the above student declaration.
Student Name*:
Submission Date^:
Please make sure you use the same name that is in your enrolment documentation, including your surname.
^If this is a resubmission, you must use your resubmission date.
Submission instructions:
Complete the Declaration of Understanding and Authenticity (above).
Once you have completed all parts of this Assessment, login to the Monarch Learning Management System (LMS) to submit your assessment.
In the LMS, click on the link to ‘Submit [assessment name]’ in your course and upload your assessment files. Click save and then click submit assignment.
Please be sure to click ‘continue’ after clicking ‘submit assignment’.
Activity instructions to candidates
This is an open book assessment activity.
You are required to read this assessment and answer all questions that follow.
Please type your answers in the spaces provided.
Estimated time for completion of this assessment activity: approximately 3-4 hours
Textbooks:
The following questions are based on the materials in the Digital Edition textbooks:
Provide Payroll Services: Functional Management and Processes 1st Edition, July 2018
Book 3 – Process Salary Packaging Arrangements
Book 4 – Process Superannuation Payments in Payroll
These textbooks are provided chapter-by-chapter in your LMS as Digital Editions.
Online Payroll Software: Learn Now Practice Payroll System (KeyPay)
For some of the following questions you will be required to use the Learn Now Practice Payroll System (KeyPay online payroll software) together with the specific payroll file located in the ‘Your Businesses’ list.
The required payroll file has already been created for you; however, you will need to create some Pay and Deduction Categories, perform a pay run and print certain documents. This may require you to learn how to use the KeyPay software by referring to online help provided within the KeyPay software. Many students find KeyPay user friendly and reasonably intuitive.
You will be advised in the relevant question(s) when you need to make use of the Learn Now Practice Payroll System KeyPay.
Use of the free trial version of KeyPay payroll software using the KeyPay public website was previously covered in your Module 1.1 BSBFIM502 Assignment for digital edition textbook.
You also used KeyPay in the exercises within your digital edition textbook at Module 3.3 FNSPAY501 titled: “Chapter 3 – Process Salary Packaging Arrangements in Payroll System”, specifically in chapter 3.2.
Important: Be sure to use the “Learn Now Practice Payroll System” (KeyPay online payroll software); this is not the public free trial used in Module 1.1 of your Diploma. This required system is accessed by using the following new web address https://learnnow.yourpayroll.com.au/
Your special login credentials for access to Learn Now Practice Payroll System (KeyPay online payroll software) should have already been provided to you by LearnNow. If you have not yet received these credentials, please contact Monarch Institute at info@monarch.edu.au and request these.
Little Pear Administration Pty Ltd
As an employer, Little Pear offers flexible remuneration plans through salary packaging to certain employees. Little Pear Administration Pty Ltd is not considered a concessional employer.
In your position as a Payroll Officer, you are required to calculate the benefits and costs associated with planned salary packaging arrangements.
Refer to the Little Pear Group Salary Packaging Policy to answer the following questions.
Question 1
Erick Hamilton, a management-level employee, wants to renew his Salary Sacrifice Agreement with Little Pear for the period 1 April 2019 through 31 March 2020.
Employment Contract (Extract):
Date of commencement 1 April 2017
Gross salary per annum $150,000
The gross salary is the earnings base used to calculate the compulsory 9.5% superannuation contributions paid by Little Pear Administration Pty Ltd.
Salary Sacrifice Agreement:
Novated Lease Agreement
Refer to the novation agreement.
Expense Payment Benefit
Mortgage repayments of $18,000 p.a. on private home
Exempt Fringe Benefits
Laptop valued at $3,000 net of GST (Primarily business use; GST is payable by the employer and can claim GST credits on this expense).
Payment of mobile phone plan costs $1,200 net of GST per annum (No private use declaration signed. Assume GST is payable by the employer and can claim GST credits on this expense.)
Other Salary Package Amounts
Additional superannuation contributions of $10,000.
NOVATION AGREEMENT
This NOVATION AGREEMENT is made on 12/March/2019
BETWEEN the “Financier”, the “Employer” AND the “Employee”
DETAILS
The Employee has entered into the Lease Agreement with the Financier for the Motor Vehicle valued at $50,000.
The Employee is employed by the Employer.
The Parties have agreed to novate the Lease Agreement as set out in this Agreement.
AGREEMENT
1. On the Effective Date the Employee novates to the Employer the Lease Agreement to the extent of the Lease Rights and Obligations. The Employer accepts the novation.
2. Under this agreement the finance lease is rescinded and the employee’s obligation to pay the lease rentals to the finance company is transferred to the employer for the term of the novation agreement.
3. The employer then makes all subsequent lease payments of $17,500 (net of GST per annum) directly to the finance company.
4. The lease payments will be charged against the employee’s remuneration package on a salary sacrifice basis.
5. The employer will pay FBT attributable to the vehicle.
6. The FBT cost will be charged to the employee’s remuneration package on a salary sacrifice basis.
7. The obligation to pay the running costs remain with the employee.
8. The employer, as lessee of the motor vehicle, provides it to the employee as a car fringe benefit for 70% private usage until the novation is terminated.
9. The Employee and Employer may mutually agree to terminate the Novated Lease. In the event of termination, the employee accepts the lease obligations.
EFFECTIVE DATE 1/04/2019
a) The required documentation has not been kept in order to allow the company to use the operating cost method to determine the taxable value of the car fringe benefit. Therefore, the statutory formula method must be used.
Required: Use the statutory formula method to calculate the FBT payable in respect of the novated lease. (Where applicable show your workings).
Base Value
Statutory Rate
Private Use %
Taxable Value
Gross up Rate
Grossed up Value
FBT payable
b) Calculate the FBT payable by the company in respect of Erick’s salary packaging arrangement by completing the table below.
Type of Benefit
Benefit Value
Taxable Value for FBT
(If applicable)
Gross up rate
Grossed Up value
(If applicable)
FBT 47%
Novated Lease
Mortgage Expense
Laptop
Mobile phone plan
Superannuation contributions
Total
c) Evaluate the impact of the Salary Sacrifice Agreement on the employee’s gross salary per annum under the following scenarios:
No salary sacrifice ($150,000 Gross salary plus super)
Salary Sacrifice Agreement as detailed above
Include any Low and Middle Income Tax Offset (LMITO).
Refer to the Little Pear Group Salary Packaging Policy to learn about the FBT treatment.
Help Erick to compare the two options by completing the below table.
No Salary Sacrifice
Salary Sacrifice
1. Package Value
2. Value of Benefits Provided
3. FBT Payable by Employer
4. = Salary Sacrifice Amount (=2.+3.)
5. Package Value less Sal. Sac. Amount
= Assessable Income (= 1.-4.)
6. less Income Tax Payable
7. less Medicare Payable
8. add Tax Offsets (LMITO)
9. = After tax pay (= 5.-6.-7.-8.)
d) Is this agreement beneficial to the employee? Why?
Question 2
Little Pear Administration’s employee Lisa Hunt wants to enter a Salary Packaging agreement for the 2019/20 period that includes the following:
Superannuation contributions up to the capped amount
Purchased leave (refer to agreement)
Loan from employer of $7,500 at 4% pa interest rate
Her gross salary is $135,000 plus superannuation.
Assume the benchmark interest rate is 5.2%. Ignore any Low and Middle Income Tax Offset.
PURCHASED LEAVE AGREEMENT
Eligibility: Permanent full time and part time employees and fixed term contract employees with a contract of 3 months or greater duration may apply.
PURCHASED LEAVE OPTIONS (Please tick appropriate box)
to purchase 4 weeks over 12 months
to purchase 3 weeks over 12 months
to purchase 2 weeks over 12 months
to purchase 1 week over 12 months
Employee to complete:
I hereby apply to participate in the Purchased Leave Arrangement. I have read, understood, and agreed to the terms and conditions of this Arrangement that are set out in the Little Pear’s Purchased Leave Policy and Guidelines. By signing this form, I agree to consent to recovery of any overpayment of salary or adjustment to leave entitlements and allowances if required. I understand that my participation in the Arrangement will commence from the earliest practicable pay period after this form is approved and submitted to the payroll area. I understand that the arrangement end date will be 31 March 2019.
Applicant’s Name: Lisa Hunt Date: 20/01/2019
Delegated Authority Approval
Approved Not Approved
Name: Herman Reno Title: Human Resources Manager
Signature: …………………………………………… Date: 21/02/2019
Purchased Leave Commencement Date: 01/04/2019
Use the information extracted from Lisa’s Salary Packaging agreement to answer the following questions:
a) The concessional contributions cap is $25,000. How much can Lisa sacrifice to maximise her contributions without exceeding the cap?
Contributions Cap
$25,000
Employer Contributions
Salary Sacrifice Amount
b) What is the value of Lisa’s purchased leave benefit?
c) What is the taxable value of the loan for FBT purposes?
d) Lisa would like to increase the loan amount and has asked if that is possible. Where could you find more information (i.e., in which company policy) about the benefits offered by Little Pear? If a limit applies within the company, specify the details.
e) What legislation or regulation should you refer to, to confirm the concessional contributions cap amount in Lisa’s salary sacrifice agreement?
Question 3
Todd Williams works for Little Pear Administration Pty Ltd as a sales executive. He was recently promoted from sales trainee and he is considering salary packaging meal expenses in the next FBT period 2019/20.
Current employment contract (without packaging) extract:
Full-time
Gross Salary $80,000
After-tax pay $61,933 (after allowing for $1,080 tax offset).
Salary Package information:
Meal expenses benefit – $5,500 (including GST)
a) Calculate the costs incurred by the employer in relation to providing the meal expenses for Todd (show your workings).
Meal expenses (incl. GST)
FBT
Input tax credit
Total cost to the employer
b) Todd’s after-tax pay with the salary sacrifice option would be $54,809 (includes LMITO). Calculate and show your workings for the total benefit value for the package.
According to Little Pear Salary Packaging Policy, would this agreement be accepted or rejected? Explain why it is accepted or rejected.
c) Use Little Pear’s letter template below, to briefly advise Todd on his current employment situation and the reason why his salary sacrifice application has been accepted or rejected.
LITTLE PEAR CONFIDENTIAL LETTER
Date:
To:
From:
Subject:
Outcome of Application:
Reason:
Signature:
Question 4
Little Pear Logistics Pty Ltd has decided to open a new warehouse in Dubbo, NSW. Harry Chadstone, a Little Pear Administration Pty Ltd employee, has agreed to move from Melbourne to Dubbo for 4-6 months, to help get the new warehouse running and to train new staff.
Harry is earning $792 per week after tax (or $961 before tax) and will receive a Living Away From Home Allowance (LAFHA) of $260 per week. (The LAFHA is considered a non-taxable allowance by the ATO).
a) Complete the below table to outline the impact of the allowance on Harry’s pay. Explain the impact of the allowance on tax withheld.
Gross wages
Allowances
Tax withheld
Net payment
Explain the impact of the allowance on PAYG withholding:
b) What external and/or organisational source should be accessed for information on an employee’s eligibility for an allowance in this workplace and role?
Question 5
Peter Hanson works in a service company in VIC. Peter is paid weekly. His employment is covered by an Enterprise Agreement. The following is extracted from the Agreement:
His standard pay is $1,711.54 for a 38-hour week.
Space, height, and dirt money allowance is paid at 3.5% of hourly standard rate for all hours.
Peter is paid $0.78 per km for using his own car for work related travel.
He is also paid $6.17 per day as first-aid officer.
Peter’s employment contract includes a salary packaging term: Peter is to sacrifice $250.00 gross wages per week and in return the company pays for his education. This education is work related.
For the week ending 7/04/2019, Peter worked for 38 normal hours (5 days) and travelled 300 km for work in his own car.
Required:
a) Calculate the value of allowances to be included in Peter’s pay run for the week. Show your workings.
Allowance
Workings
Amount $
Space, height, and dirt money allowance:
Car allowance:
First aid officer allowance:
Total Allowances:
b) For the allowances(s) in part (a) above, determine the following (show your workings):
Item
Workings
Amount
Amounts that are subject to PAYG withholding
Amounts that form part of ordinary time earnings (OTE)
c) Outline how the payments in part (a) should be reported on Peter’s PAYG payment summary.
d) To perform this exercise, use the Learn Now Practice Payroll System (KeyPay online payroll software) with the specific payroll file located in the ‘Your Businesses’ list. The required payroll file has already been created for you.
Refer to the Activity instructions to candidates section at the beginning of this assignment.
Please be certain to use the business file named “FNSPAY501&502 2 Assessment EDU#######” (where EDU####### will show your unique number). Do not use any other file.
You can access the payroll software here https://learnnow.yourpayroll.com.au/
Note:
The required payroll file has already been created for you; however, you will need to create some Pay and Deduction Categories, perform a pay run and print certain documents. This may require you to learn how to use the KeyPay software by referring to online help provided within the KeyPay software. Many students find KeyPay user friendly and reasonably intuitive.
Tip: Another very useful and relevant reference is this ATO web page (below) to help you determine for which categories you are required to withhold PAYG, if and where to include on a Payment Summary and if superannuation guarantee applies:
https://www.ato.gov.au/Business/PAYG-withholding/Payments-you-need-to-withhold-from/Payments-to-employees/Allowances-and-reimbursements/Withholding-for-allowances/
Required:
Based on the information above in this question, process a weekly pay run for Peter Hanson in KeyPay.
Your pay run should include ordinary hour wages, the above allowances and deduction for salary packaging.
The pay period starts 1/4/2019 and ends 7/4/2019. The pay date for the pay run is 8/4/2019.
At the end of your pay run, download the PDF copies of this week’s pay slip and a PAYG Payment Summary for Peter Hanson for the full 2018/19 financial year.
Take a clear screen shot of each document and insert an image of each into each box below.
Peter Hanson Pay Slip
Peter Hanson PAYG Payment Summary
Question 6
Hawthorn International Pty Ltd has not complied with the Superannuation Guarantee Scheme for their three employees. Their superannuation guarantee percentage is 9.5%.
Employees have been provided with annual superannuation support equivalent to only 6% of their earnings base. These amounts were paid to their nominated superannuation funds.
The employees’ earnings base for quarter 2, 2018/19 was the ordinary times earnings of $56,000. The employees’ total earnings including overtime for the quarter was $84,000.
Hawthorn Pty Ltd lodged a SGC Quarterly Statement on 20 February 2019.
Required:
For quarter 2, calculate following:
a) Calculate the amount of superannuation guarantee Hawthorn would have already contributed to a complying fund. (Show you workings).
b) The employees’ shortfall percentage and the shortfall dollar amount. (Show your workings).
c) Calculate the nominal interest component. Assume 365 days in the year. (Show your workings).
d) The administration component. (Show your workings).
e) The aggregate Superannuation Guarantee Charge ($ amount). (Show your workings).
One of the employees, Gary, has asked you for explanations of the different types of superannuation funds. Gary is currently with a retail super fund and is thinking about switching to a different type of fund.
Explain the characteristics of the following types of super funds to Gary:
f) Defined benefits funds
g) Corporate funds
h) Self-managed super funds (SMSF)
i) Gary wants to know if he is eligible for government co-contribution. List all the eligibility requirements for him, any income thresholds that may apply and details of any eligible income test.
Note: There is also a separate but related video role play task to perform at Q10 at the end of this assignment.
Question 7
Calculate Little Pear Administration Pty Ltd’s superannuation expense for the month of September using the following information: (Show your workings for superannuation).
For month of September
Employee
Salary
Annual Leave
Sick Leave
Overtime
Allowance
Superannuation
(Show your workings)
David Reed
$6,100
$469
$300
$600
$180 dry cleaning
Carol Wright
$3,732
–
$144
$250
$50 first aid
Debra Foy
$2,180
–
–
$445
–
Michael Green
$4,920
$378
–
–
$250 car allowance
John Mills
$11,600
$892
$446
$125
$350 travel allowance
Peter Black
$400
–
$15
–
–
Total
Mention two different ways to keep these records secure according to the company policies and following the Privacy Act requirements.
One of Little Pear’s employees wants to choose a non-complying super fund and he asks you for general guidance. Explain the differences between a complying and non-complying fund and how this might affect the employee’s future savings?
As an employer, would you choose a defined benefit or accumulated superannuation fund for your employees? Explain your answer.
Use the following information from Little Pear’s executive managers to fill the table below about Little Pear’s salary and superannuation expenses for the 2018/19 period.
To calculate the income tax, assume the 2018/19 regular marginal individual income tax rates for Australian residents (claiming the tax-free threshold) apply and do not consider any children or other circumstances, apart from LMITO if applicable. Also add Medicare Levy to determine the total Income Tax Payable (for the table).
Any Salary sacrificed super contribution will not reduce the employer’s SG obligation according to the employee’s contract.
All employees have superannuation fund balances of less than $500,000 and have available ‘carry-forward’ concessional super contributions. No employee will exceed the concessional cap amount.
All employees are considered to have private health insurance and do not claim any health insurance rebates for tax purposes.
Show your workings and justification for your values.
Information:
Lauren Lucas is Little Pear’s production manager and has a gross salary of $85,000 per annum. She entered a salary packaging agreement with Little Pear to sacrifice $8,700 as superannuation contributions. Since Lauren exceeded all the production requirements, she received a $25,000 bonus.
Harrold Waters, Little Pear’s CFO, has a gross salary of $230,000 and salary packages $4,000 into his superannuation.
Oliver Park is Little Pear’s retail director. His gross annual salary is $150,000 and he has a salary packaging agreement with Little Pear to sacrifice $6,500 into his super. He made a personal contribution of $5,000 into his superannuation. Oliver meets all the eligibility criteria and is claiming a deduction for his personal super contributions. Since 95% of Little Pear’s stores exceeded their sales target, Oliver received an $18,700 bonus.
Katy Reed is the general manager of Little Pear’s customer service and her gross salary is $75,000. She did not receive any bonuses this year and decided to make a personal contribution to her superannuation of $1,000. Katy meets all the eligibility criteria and is claiming a deduction for her personal super contributions. She has a salary packaging agreement as well and she sacrifices $5,000 into her superannuation. Katy has a motor vehicle allowance included in her employment contract for $1,500 (the ATO have deemed this reasonable and exempted from PAYG withholding).
Complete this table:
For 2018/19 year [show your workings in each cell]
Taxable Income
Income Tax Payable (incl. Medicare Levy)
Total Superannuation Payable
Lauren Lucas
Harrold Waters
Oliver Park
Katy Reed
What is the total gross salary expense for Little Pear? (Do not include any bonuses, allowances, packaged or sacrificed amounts)
Employee
Salary Expense
Lauren Lucas
Harrold Waters
Oliver Park
Katy Reed
Total
What is the total mandated super contribution expense for Little Pear? (Note: superannuation guarantee).
Employee
Mandated super contribution expense
Lauren Lucas
Harrold Waters
Oliver Park
Katy Reed
Total
On 10 January 2019, an employee earning $17,500 was paid superannuation for the Oct – Dec 2018 quarter at the rate of 5% to her chosen fund. No other amounts were paid for her for this quarter. What is the consequence of the shortfall?
Required:
To answer this question, complete the following statement and list what this is made up of.
Fill-in the last missing word in this statement:
The consequence is that the employer incurs Superannuation Guarantee _________(fill in the missing word of the sentence).
This is made up of (list 3 components):
Then, calculate the liability Little Pear must report to the ATO.
Calculate the liability:
Calculation Worksheet for Shortfall Amounts
Step 1: Gather quarterly required information
Employee’s OTE
A
Employee’s total salary/wages
B
Total super contribution paid by the cut-off date
C
Super contribution paid by the cut-off date to the employee’s nominated funds
D
Step 2: Preparation calculation
Total SG contributed by cut-off date in %:
C ÷ A x 100
E
SG paid to the employee’s nominated fund in %:
D ÷ A x 100
F
Notional quarterly shortfall in $:
(9.5 – F) ÷ 100 x B
G
Step 3: Calculation shortfalls
SG shortfall
(9.5 – E) ÷ 100 x B
H
Choice liability
0.25 x (G – H)
I
Step 4: Total shortfall amounts and calculate total SGC
Shortfall (H + I)
J
Interest on shortfall amount: (show your workings here)
Administration Fee: (show your workings here)
Super Guarantee Charge (Shortfall + Interest + Admin Fee):
Write a short memo to your colleagues outlining why superannuation is best paid in full, and on time.
Tip: Reflect on your calculation above; consider whether the business is worse off or not, because of the late and incorrect calculation. Also mention whether or not this amount is tax deductible to the employer business.
LITTLE PEAR ADMINISTRATION — MEMO
DATE: [Insert today’s date]
TO: The Board of Directors, Head of Human Resources, Department Managers, Franchisees of Little Pear, Non-management Employees, Company Shareholders, External Contractors, Suppliers [Delete irrelevant parties who should not receive this memo]
FROM: [Insert your name & title]
SUBJECT: [Insert memo subject]
[Insert Memo content]
Question 8
As a part of your company’s onboarding procedures, new employees are required to complete and submit a Superannuation Standard Choice Form and Tax File Number Declaration Form. The information is then recorded in the payroll system.
In the past, this has been an informal process handled by the new employee’s manager. Concerns have been raised that the lack of formalised procedures may have resulted in employees’ personal information being handled in ways which do not abide by the Fair Work Act and/or Privacy Act.
These concerns have been raised due to two incidents brought to the attention of the CEO.
An internal audit of payroll records identified a number of Superannuation Standard Choice Forms not being filed in the paper or digital records systems.
A complaint was received from an employee that an administrative assistant was given access to superannuation records, including a completed salary packaging agreement, by a manager. The manager had asked the assistant to record the superannuation standard choice form details in the payroll system. The assistant had then divulged the employee’s salary to other staff.
The company has grown rapidly over the past two years, to now have annual turnover in excess of $6 million. The decision has been made to remove responsibility for HR functions from departmental managers and to employ an HR Manager.
You have been asked to draft new procedures to be included in the onboarding procedures, covering the handling of the following documents:
Superannuation Standard Choice form
TFN Declaration Form
Salary Packaging Agreements
a) Which staff should have access to these three completed documents listed above? Why?
b) Who do you think the new employee should hand the completed forms to? Why?
c) What should that staff member do after receiving the forms? Why?
d) What record keeping requirements apply to these completed forms?
Superannuation Standard Choice form:
TFN Declaration Form:
Salary Packaging Agreements
e) Legislation, regulations and best practice guidelines change. This may result in future changes to the above being required. Describe a procedure or policy which could be implemented to ensure the company stays compliant.
f) The existing payroll procedures do not cover the treatment of a Superannuation Standard Choice Form that is submitted without being completed, or the form not being submitted at all. How should the payroll department treat accumulated superannuation payable where no employee choice of fund information is available? Why?
g) You are the payroll officer for Little Pear and the existing payroll system procedures do not properly cover the establishment, accrual and payment of superannuation. Your manager has come to you and asked that you write a memo to the Head of Human Resources establishing a new system to manage super information and payments.
Research using the textbook and the internet on payroll system procedures for assistance on how to establish this system. Use KeyPay as the software in your payroll procedures.
Your memo needs to include steps on how to:
Obtain superannuation information from employees using super choice forms
Update or add this superannuation information into KeyPay
Accrue superannuation liabilities as part of running a pay run
Run a report to determine superannuation liabilities
Process payments for the superannuation guarantee using an electronic clearing house
Ensure you are remitting superannuation on time (include due dates)
Take a screenshot of a Superannuation Contributions Report from KeyPay and add it into your memo. Explain the report including what needs to be paid and by when.
Also ensure that your memo is in line with employee confidentiality procedures and the Privacy Act when obtaining and accessing payroll information. Please add some detail on this to your memo.
LITTLE PEAR ADMINISTRATION — MEMO
DATE: [Insert today’s date]
TO: The Board of Directors, Head of Human Resources, Department Managers, Franchisees of Little Pear, Non-management Employees, Company Shareholders, External Contractors, Suppliers [Delete irrelevant parties who should not receive this memo]
FROM: [Insert your name & title]
SUBJECT: [Insert memo subject]
[Insert Memo content]
h) Some business structures are required to pay superannuation, whilst other business structures are not required to make superannuation payments, please put yes or no in the boxes below to describe whether super payments need to be made:
Business Structure
Yes
No
An employee of a company
A sole trader drawing wages from their business
A contractor that does not meet the ATO Employee Decision Test
A contractor that does meet the ATO Employee Decision Test
A contractor payment under a Labour Hire agreement
Question 9
Calculate and process the impact of salary packaging arrangements on an employee’s payments.
Donald Dolores wants to enter a Salary Packaging arrangement with his employer for the next FBT year, being 1 April 2019 through 31 March 2020.
Here is an extract of Donald’s last pay slip:
Donald would like to package the following from 1 April 2019:
A) A new iPhone for his work and personal use. The cost is $1,499 excluding GST. (Assume GST is payable by the employer and can claim GST credits on this expense.)
B) Gym membership at fortnight cost of $55 including GST, i.e. 26 fortnights @ $55 pf = $1430 p.a. (Assume personal expense payment fringe benefit and also not otherwise deductible.)
C) Use of a company car for occasional personal use. The taxable value of this benefit for FBT purposes is $6,200 per annum.
D) Superannuation up to the concessional contribution cap. i.e. concessional contributions cap 2018/19 $25,000 (all ages) less SG $15,200 (= 9.5% of Donald’s annual wage $160,000) = $9,800 p.a.
The completed salary packing agreement contains the following information:
Type of Benefit
Benefit Value
Taxable Value of FB
(if applicable)
Gross up rate
Grossed Up value of FB
(if applicable)
FBT 47%
A) Mobile phone
1,499
N/A
B) Gym membership
1,430
1,430
2.0802
2,974
1,397.78
C) Company car
6,200
6,200
2.0802
12,897
6,061.59
D) Superannuation contributions
9,800
N/A
Total
18,929
7,630
15,871
7,459.37
Donald Dolores has also submitted a Superannuation Standard Choice Form, requesting that his super fund be changed to:
ING Living Super
USI 13355603448001
Member Number 00058693
Required:
To perform this exercise, use the Learn Now Practice Payroll System (KeyPay online payroll software) with the specific ‘Your Businesses’ payroll file already set-up for you.
Please be certain to again use the business file named “FNSPAY501&502 2 Assessment EDU#######” (where EDU####### will show your unique number). Do not use any other file. This file was used earlier in this assignment.
You can access the payroll software here https://learnnow.yourpayroll.com.au/
a) Log into the Little Pear Practice Payroll System using the business file named “FNSPAY501&502 2 Assessment EDU#######”. This file was used earlier in this assignment; use it again for this exercise.
b) Record the details of Donald’s salary packaging agreement in the Practice Payroll System.
c) Record the change of superannuation fund in the payroll system.
d) Process a pay run (for Donald only) for the week ending 7 April 2019, to be paid 8 April 2019.
Take a screenshot of Donald’s pay slip and insert in the box below.
Note: The required payroll file has already been created for you, however you will need to create some Pay and Deduction Categories, perform a pay run and print certain documents. This may require you to learn how to use the KeyPay software by referring to online help provided within the KeyPay software. Many students find KeyPay user friendly and reasonably intuitive.
Donald Dolores Pay Slip
Question 10
Video role play: Co-contribution enquiry
Scenario
Gary, a staff member at Hawthorn Pty Ltd, has asked to meet with you; he wants an explanation of co-contribution. You meet with Gary to provide information and answer his questions. Also refer to your response for question 6i) regarding eligibility for the super co-contribution.
Roles
You: the Payroll Officer
Gary: another staff member at Hawthorn Pty Ltd
Resources required for this assessment
Activity 10 Role play script: Co-contribution enquiry (Appendix A of this assignment);
One other person to read/play the part/s of Gary;
Device to record a video of your meeting.
Instructions
You will need at least one other person for this task. Give them a copy of the script titled ‘Activity 10 Role play script: Co-contribution enquiry’.
Record your meeting with Gary. Follow the video recording instructions that are available on the LMS. Upload the meeting video when you upload the rest of the documents for this Assessment workbook.
If you can’t complete this video assessment activity, please contact your trainer ASAP.
This task is designed to help assess your ability to:
Greet staff appropriately and professionally
Explain how super co-contribution works and outline the eight elements of eligibility
Provide co-contribution related information including:
Income thresholds
Eligible income tests
Relate the information to the given scenario
Engage in dialogue (question and answer exchange) using clear and professional language
Provide information using appropriate terminology and non-verbal features (tone, style, facial expression, body language)
Use listening and questioning techniques to engage in dialogue and respond to questions appropriately and clarify information.
Ask appropriate questions to elicit relevant information.
Student Pre-Submission Checklist
When you upload this Assessment workbook, make sure you also submit:
Role play video (Activity 10: Co-contribution enquiry)
Activity 5d): Include screen shot of Peter Hanson pay slip & PAYG Payment
Activity 8g): Include screen shot of super contributions in memo
Activity 9: Include screen shot of Donald Dolores pay slip
Video Role Play General Instructions:
Students must conduct the role play with at least 1 other person;
Using just 1 other person to play multiple roles is completely OK. Alternatively, you can use as many other people as there are roles;
The other person(s) can play multiple roles except for the role required to be played by the student;
There is no requirement for the other person(s) to be visible in the video, so if the other person(s) would prefer not to be visible, that’s OK;
The student must be visible throughout the video;
All people must be audible throughout the recording;
Using a camera phone is often a quick and easy way to record the video.
Role Play Setting
When deciding on where to conduct the role play we suggest:
Find a quiet, private space where you can effectively record the video. This could be a spare room at home, an office at your workplace, or even a study room at your local library;
Be appropriately dressed.
During the Role Play:
Use appropriate body language and gestures, including eye contact;
Speak professionally, and at an appropriate pace (between 120 wpm and 150 wpm);
Use your natural conversational skills, do not simply read from your notes/script;
Use plain English;
Listen without interrupting;
Respond appropriately to what is said.
Tip: A video role play is required to demonstrate your ability to communicate verbally and interact with others in a simulated workplace environment.
You need to use your natural conversational skills during the role play: you may refer to your notes and resources but if you simply ‘read’ the entire interaction, you may be asked to redo your role play in order to meet the requirements of this unit.
Want to practice your speaking speed?
There are several free metronome apps available for Apple and Android which can help keep time as you practice your presentation. Here are 2 smartphone apps that can help:
Metronome Beats: Metronome Beats has easy-to-use controls for increasing and decreasing the tempo. The visual beat indicators help you to keep track and it is very easy to mute the metronome while visually monitoring your tempo.
Pro Metronome: Pro Metronome is a fantastic app for public speakers who are working on their pacing. It offers a variety of ways to keep your tempo: screen colour changes, vibrations, or sounds.
Appendix A: Activity 10 Role Play Script – Co-contribution enquiry
Scenario
Gary, a staff member at Hawthorn Pty Ltd, has asked to meet with you; he wants an explanation of the government super co-contribution. You meet with Gary to provide information and answer his questions. Also refer to your response for question 6i) regarding eligibility for the super co-contribution.
Roles
You: the Payroll Officer
Gary: another staff member at Hawthorn Pty Ltd
Instructions
If you only have one other person, they play/read all the roles except yours.
The parts are indicated with names in brackets, like this: [YOU] [FELIX].
When something is written in bold, it’s just a guide – not a line you have to read word-for-word.
There’s often no script for what you say; just guidelines. That’s part of the challenge! Don’t read these lines out. Instead, answer in a way that fulfils the guidelines.
For example, if the guideline for the you were:
[YOU]: Name and describe some fruit. Say something good and something bad about the fruit.
…you might say “Apples. They’re red, juicy, and crunchy. They’re high in fibre, but you can’t eat the core.”
Normal speech is written as follows. Read these parts out.
[MARY]: Let’s get this meeting started.
Instructions for actions or body language are written in italics as follows. Don’t read these parts out.
[FRED]: Look angry and raise your hand.
Activity 10 Role Play Script – Co-contribution enquiry
[YOU]: Greet Gary.
[GARY]: Thanks for meeting with me. I just want to make sure I get the most I’m entitled to, you know?
Acknowledge Gary’s comment. Explain the basics of the co-contribution.
[GARY]: Oh, OK, so am I eligible?
[YOU]: List the eight elements of eligibility. Ask Gary (tactfully) what his income is.
[GARY]: I’m on $35,000 this year. Since I went part-time and all,
and this is my only job. Does that make a difference?
[YOU]: Answer Gary’s question about being a part-time employee with no other income.
Explain the income thresholds, eligible income test, any minimum personal contributions, and what Gary’s income means for his eligibility. Ask Gary his age and citizenship status.
[GARY]: 60 this year, born and grew up in country Victoria.
Well, from what you have said, it sounds like I’m in so far!
I reckon I can do that. I’ll have to get
on to my super fund about that. Righto, anything else?
[YOU]:
Tell Gary he has got all the information he needs. Wrap-up by saying that Gary should confirm his situation with his professional financial adviser who would be fully familiar with all Gary’s personal financial affairs.
[GARY]: Will do! Thanks for your help today!
