Australia Payroll System: Employer Obligations

This assignment delves into the intricacies of Australia's payroll system, focusing on employer duties and obligations. It covers topics such as ABN verification, quarterly Superannuation Guarantee Charge payments, employee pay structure, award types, TFN declaration, and more. Employers are guided through their responsibilities in managing payroll taxes, maintaining employee records securely, and adhering to termination payment regulations.

Accounting-Establish and
Maintain Payroll Systems

Table of Contents
Introduction.........................................................................................................................................3
Q.1.........................................................................................................................................................3
Q.2.........................................................................................................................................................3
Q.3.........................................................................................................................................................3
Q.4.........................................................................................................................................................3
Q.5.........................................................................................................................................................3
Q.6.........................................................................................................................................................4
Q.7.........................................................................................................................................................4
Q.8.........................................................................................................................................................4
Q.9.........................................................................................................................................................4
Q.10.......................................................................................................................................................5
Q.11.......................................................................................................................................................5
Q.12.......................................................................................................................................................5
Q.13.......................................................................................................................................................5
Q.14.......................................................................................................................................................6
Q.15.......................................................................................................................................................6
Q.16.......................................................................................................................................................6
Q.17.......................................................................................................................................................6
Q.18.......................................................................................................................................................6
Q.19.......................................................................................................................................................7
Q.20.......................................................................................................................................................7
Q.21.......................................................................................................................................................7
Q.22.......................................................................................................................................................7
Q.23.......................................................................................................................................................7
Conclusion............................................................................................................................................8
References............................................................................................................................................9

Introduction
An employee is one of the largest portion expenses in the company where they spending on
hiring, training and maintaining their employees in the long run. A payroll system is critical
and complex part which represents the accounting function of a business and use for pay
wage to their staff (Kimmel, Weygandt and Kieso, 2010). The present report will be
discussing on various legislation of payroll in the context of Australia.
Q.1
There is various information which should be collected by the payroll officer before
processing the first pay roll of an employees. these information involves legal name,
permanent address and current address, contact number, social security number of an
employees. This information can be collected from the various document of their staff
provided by them.
Q.2
This is the responsibly of the company to provide their new employees TFN declaration
which is a legislation process. The purpose of such form to help the determination of tax
liabilities.
Q.3
In this context, the responsibility of an employer is to check and correct tax code and rectify
it on the immediate way (Rosenfeld and et. al., 2011). on the other hand, Employees also
communicate with tax authorities which helps to rectify these errors in an effective manner.
Q.4
It is essential for a business organization to make their payroll system effective and keep all
record safe for the near future. It required more than one person which helps to manage all
payroll compliance in an effective manner.
Q.5
There are following types of award which includes:
 Modern awards:

 Award based on transitional instrument
Q.6
This is an amount which help by company from employee’s earnings. It involves income tax,
insurance, social security contribution, pension funds etc. There are following examples of
employee’s deduction:
 A staff can get deduction vehicles and travel expenses.
 Deduction form his educational speeding’s.
 Deduction for gift and donation.
Q.7
It is related with the employee benefits where some taxable and non-taxable category. In
Australia there are following types of allowances provided to an employee:
 Healthcare allowances: An employee can claim its health benefits which can be
deducted from tax.
 Travel allowances: The travel between work to site can be claimed by the employees.
 Other types of expensed also can claimed which are related to the work.
Q.8
A pay period cycle involves where the employer paid remuneration to its employees which
can be based on weekly, monthly quarterly and yearly basis. This is the responsibility of the
company is to paid wage on time according to their policies and guidelines. They also
required that to follow all government regulation strictly regarding pay period cycle.
Q.9
To: HR department
From: HR head
Subject: Next payroll is due to be processed on Christmas Day
This is informed that to Christmas Day holiday your moved to next month.
HR Head

Q.10
A pay role system can be computerised which having a large significance in the productivity
and efficiency in the payroll process and reducing time and cost. Automated payroll system
helps in recording and calculating wages especially hourly (Hicks and Rosenfeld, 2010). On
the other hand, Manual payroll system takes more time to determine wage and it can be
create miscalculated which is not good for the employers.
Q.11
There are following types of variation which are given below:
 Relieving appointments
 Course coordination
 Unit Assessing
 Variation in Hours
Q.12
There are following legislative regulation of payroll:
 Payroll tax act section 17.
 Tax Agents Services Act 2009 (TASA).
 Fair Work Act 2009
Q.13
A payslip is statement which contain all the relevant information on an employee which
related with various data such as:
 Insurance number
 Tax code
 Wage pay rate
 Gross and net pay
 Name and designation of an employee’s

 Bank details
 Other legislation information regarding deduction and allowances
Q.14
It is essential for a business organization to make a record of all relevant information of their
employees specially payroll data. It involves wage rate, gross and net amount paid, deduction
related with gross salary, information about benefits, bonus, incentives, penalties, or other
kind of monetary benefits provided to the employees.
Q.15
It is responsibility of an employer to make confidential all personal and payroll information
accosting to Privacy act. The company must be adopt following principles:
 Limited the collection of information of their staff.
 Give notice before collection any potential information from their employees.
 Keep employee’s information secure and confidential from others.
Q.16
PAYG is a tax in which a business owner to pay certain amounts which accumulate of their
expected tax obligation. It is a collected tax of their staff which ensure that they meet its
periodic tax liability.
Q.17
There are various tools and techniques which can be used by an employer is to check the
superannuation fund. Super fund lookup is a method which available for an individual and
regulated by the ATO and APAR. In this approach the business owner can enter ABN and
check the detail in an appropriate manner.
Q.18
According to the Australia taxation act that an individual required that to make payment at
minimum four times in a year. There are following format for quarterly payment for
Superannuation Guarantee Charge:
Quarter Due date
First 28 October

Second 28 January
Third 28 April
Forth 28 July
Q.19
This is the role of employer is to cross check the total payment of payroll so that they can
verify such amount. This is significant for a business owner is to calculate all amount which
helps to maintain the relationship between them.
Q.20
This is the responsibility of an individual to provide appropriate guidelines and security
procedures. They need to made various principles where an employer collecting various
information and manage this information. They also make sure that personal information of
their staff should be protected from external threats.
Q.21
Salary packaging refers that to receive part of an employee’s income which includes salary
and other benefits. The whole salary package is voluntary eligibility. It is essential for an
individual is to made an agreement with employer and understand all terms and condition in
an effective manner (Collin, and at. el, 2010). it includes all specifies information such as
different types of benefits, super guarantee, assessable income and so on.
Q.22
According to the TASA a tax service provider advising and consulting about the liabilities or
obligation of an individual according to Australian taxation law. They are presenting and
directly dealing with taxation commissioner relating to tax legislation.
Q.23
Superannuation guarantee: It is a contribution which made by the business owner on the
behalf of its staff. According to the act, it should be minimum of 9.5 percent will be
applicable.

Termination payment: It is a payment made by the employer at the time of employee’s
termination for their compensation. This is a lump sum amount which must be under the tax
liability according to Australia laws and legislation.
Super guarantee charges: It is scheme where an employer provide a minimum level of
support for their staff each and every year.
Conclusion
As per the above mentioned report it has been concluded that the significance of payroll
system and its various laws and legislation. The report explained about the employees pay
role structure, process to be used, TFN declaration, different types of award, employee’s
deduction and allowances. These all information plays a prominent role in the maintain and
building a healthy relation between employer and employees.

References
Books and Journal
Kimmel, P.D., Weygandt, J.J. and Kieso, D.E., 2010. Accounting: Tools for business
decision makers. John Wiley & Sons.
Rosenfeld, P.J., and et. al., 2011. Employee-based payroll. U.S. Patent 7.941.351.
Hicks, T. and Rosenfeld, P.J., Intuit Inc., 2010. Method and system for generating and
processing an electronic payroll voucher. U.S. Patent 7.761,370.
Collin, C.O.K., and at. el, 2010. Payroll System Optimization. U.S. Patent Application
12/917.119.