Manage Payroll Assessment: Security Procedures, Employee Allowance Claims, Internal Control Measures, Reconciliation, Payroll Data

This assessment covers various topics related to managing payroll, including security procedures for payroll information, employee allowance claims, internal control measures, reconciliation of payroll, and payroll data preparation. It includes short answer questions, explanations, and research-based answers. The assessment also discusses the importance of confidentiality, designated timelines, organisational procedures, and ATO requirements. It provides a comprehensive understanding of payroll management and its various aspects.

Assessment
BSBFIM502 Manage Payroll Assessment
SHORT ANSWER QUESTIONS
Please respond to all the following questions. You can write your answers under each
question directly. You might have to u
ndertake the appropriate research to answer these questions.
Activity 1
1 What security procedures can be used to ensure confidentiality of payroll
information?
Answer: The security procedures that can be used for ensuring the payroll information’s
confidentiality are:
 Information shall not be used for unlawful acts and shall only be used for the planned
purposes.
 Informal individuals shall not be allowed to see the private data and the data shall be
secured safely at the end of the day.
 Position the PC in such a way that the informal individuals are unable to see that
 Don’t leave the desktop without logging off the finance framework
2 George is the new manager of the payroll area. He is tasked with examining the
security arrangements for the payroll area to ensure they are sufficient. What areas
should he focus on to start his examination?
Answer: For starting his examination George shall focus on the following areas:
 Ensure that the finance records are away from the unauthorized people so that they
cannot misuse them.
 The work as well as the division of work shall be sorted out well.
 Rectify the finance plans and confirm the various set of responsibilities of the finance
staff.
 The right to utilize the PC shall be taken care of and shall be secured well so that the
unauthorised individuals do not have access to the paper records, stock piling and the
various documents.
Activity 2
Explain the standard process used by payroll management to ensure employee
allowance claims are substantiated.
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Answer: In order to ensure that the employee allowance claims are sustained well the
process of the payroll management includes:
 Ensure that the receipts that are relevant are attached.
 The employee keeps the copy of the relevant receipts
 The form is signed and approved by the manager of the employee.
 The forms that are relevant are placed in the files of the employee.
 Every form shall be double checked so that the accuracy is maintained.
Along with this in order to maintain efficiency and accuracy it is the responsibility of
the payroll management to review the allowance claims and payroll claims on regular
basis.
Activity 3
Read the two scenarios and recommend one of the internal control measures for each.
Explain why the recommended measure might stop the issue from recurring.
1 Timesheets from the call centre department have gone through without management
authorisation.
Answer: The control measure for the above scenario would be supervisor checks: by having
supervisor check or administrator check in place the payroll information would not go
without any omission.
2 A payroll staff member has authorised all the payroll area’s overtime payments
including their own.
Answer: The control measure for the above situation would be approval control. By having
an approval control it will ensure that only the designated individual can pass the salary of the
employee and that no employee is able to pass his own salary.
3 Where would the payroll officer and payroll staff find the information needed to help
them determine what action they should have taken?
Answer:
In order to determine what action needs to be taken, the payroll officer and pay roll staff will
find the information in the approved finance data provided by the administration.
Activity 4
Research and provide answers to the following:
1 List five types of record an employer should keep under fair work legislation.
Answer: The five type of records that are required to be kept by the employer are:
 Time and wages records
 Type of employment, employee is under means if he is under full-time employment or
part-time employment.
 Superannuation records
 Employee leave records
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 The date on which the employment of the employee began
2 If a Fair Work Inspector issues an organisation with an infringement notice for failing
to meet their recordkeeping obligations, how long does the organisation have to pay the
penalty?
Answer:
An employer has to pay the penalty inside 28 days in the infringement notice.
Activity 5
Provide a description for each of the ten minimum standards under the National
Employment Standards.
Answer:
The ten minimum standards under the National Employment Standards are:
1. The week of hours is 38 hours that includes the additional sensible extra hours.
2. If there is a watchman or a guardian and he has a kid below the age of 18 years than
he can ask for adaptable working course actions.
3. Annual leave is four weeks paid leaves in a year, along with an additional leave in
case of shift workers.
4. The employees who have been in service with the same employer for a longer
duration of time will have paid leaves.
5. Paid off on a public holiday except in the cases where it has been requested to work.
6. Based on the length of services employees are allowed upto 5 weeks’ notice of
termination and up to 16 weeks of redundancy notice pay.
7. The employers are under the obligation to provide provision of fair information
statement to all the employees.
8. Community service leave is an unpaid leave which is for voluntary emergency
activities and the leaves that are taken for jury service.
9. Parental leave and other related entitlements are allowed upto 12 months unpaid leave
and it also includes the leaves related to adoption.
10. In case of personal or carer leave, a leave of 10 days paid leave is allowed and 2 days
compassionate leave is allowed along with this it also includes 5 days unpaid family
leave or domestic violence leave.
 Activity 6
Calculate the net pay for a person earning $850.00 per week paying $202.00 tax, and a
child support payment of $115.00 using a PEA of $329.55.
Gross weekly pay - $850
Tax withheld - $202
Weekly PEA- $329.55
Pay remaining = Gross weekly pay – tax withheld-weekly PEA
$318.45
Deducted child support (this amount to be remitted to CSA) -$115
Pay remaining $203.45
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Plus PEA -329.55
Net pay to employee =$533
Activity 7
1 What components make up the preparation of payroll data?
Answer:
The components that are used for the preparation of Payroll data are:
 Net Pay- it is the amount left at the employee’s pay check after making few
deductions.
 Preparing Checks: it is the preparation of the checks for paying the employees.
 Calculating the gross pay: It is the total amount of the pay or the wages of the
worker or the employee.
 Electronic Reserve exchange: It is the exchange of cash that starts with one record
and moves with the other frameworks of the PC.
 Investigation of Cash: this helps in examining the inflow of the cash and is very
important.
 Superannuation: the amount that is kept aside for the retirement purposes.
 Taxation: the various deductions and the tax that are to be deducted from the pay of
the worker are included under this.
2 Where might current data be found regarding designated timelines for the payment
summaries and/or the superannuation guarantee?
Answer:
The information regarding the current data that includes the designated timelines for
superannuation guarantee and payment summaries can be found on the site of Australian
Taxation Office also known as ATO. ATO is the Australian Government income gathering
office. It has various information related to the different financial and social motivation
projects. It is the most informative website.
Activity 8
1 What organisational procedures would be followed to check payroll?
Answer:
The Payroll information in an organisation for each employee is prepared in the report form
and is printed, after that the report is thoroughly checked for its accuracy and the below
mentioned areas are covered while checking it:
 Hourly rate
 Taxation
 Deductions
 Hourly paid
 Superannuation
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 Allowances
 Grants
If while checking, any errors or omissions are found in the report than the same are
corrected making various adjustments and then the report is rerun and rechecked. The
Payroll is processed and updated after thoroughly checking the report.
2 What are the repercussions if an organisation fails to check payroll data?
Answer:
If an organization fails to check the payroll data, there are going to be the following
repercussions:
 The calculations and records of the payroll will be inaccurate
 At times this might result in overpayments
 There is an inaccurate calculation in regard to superannuation, fringe benefit tax and
PAYG withholding.
 Payments could be made incorrectly for the work not performed.
Activity 9
1 Why is reconciliation of payroll important?
Answer:
It is important to reconcile the payroll in order to ensure that the wages are accurate, the
deductions calculated are not inaccurate and the same are made according to the voluntary
and statutory authorities and there are no omissions and errors.
2 What type of activities does payroll reconciliation include?
Answer:
The Payroll reconciliation includes the following activities:
 Verification for the correctness of the salary paid
 Verification that the employees are not paid from an inappropriate account
 The wages paid are precise and there is no deviation according to the offer letter.
 To ensure the correctness of the leaves and the working hours of the employees.
3 What is the process to reconcile payroll?
Answer:
The process of reconciling the payroll can either be a simple process or a complex process
which depends solely on the size of the payroll.
For example:
 Prepare a worksheet or a spreadsheet: in the first column you can add the descriptions
of the line item while in the second column you can enter the amount for the item.
 In the first row you can enter the balance for your bank and in the amount column the
ending balance of the banking statement shall be added.
 In the next column you can list the bank adjustments.
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 Calculate all the modifications and the bank adjustments (Marsden, 2010). In case of
any slip-ups the same shall be resolved through various alterations.
 Recognize extraordinary checks for each of the finance reports.
 Compare the issued coordinate stores with the charged stores.
 For the unrecorded bank expenses prepare a different section.
 Compare the finance money account and finance charge obligation and enter the
distinction.
Activity 10
An employee has called payroll with a query regarding the penalty rates paid in their
last salary payment. What should be considered both before and during the handling of
this enquiry?
Answer:
While dealing with the enquiry the following shall be considered:
 Specialist: if the demand of the query has not been resolved properly than the same
shall be passed on to the specialist.
 Protection: it shall be seen that the association mystery is guaranteed.
 Must be realistic:` Sentiments shall be ignored and certainties shall be handled with
care. It is important that the agreement assertion shall be taken care of as it is one of
the greatest assets while handling such issues.
 Precision: the work shall be precise and reports shall not be illuminated.
Activity 11
What are the ATO requirements regarding employees claiming the tax-free threshold if
employed at more than one workplace?
Answer:
According to the tax arrangement each Australian Occupant remains tax exempt at certain
wage rate. There is a guarantee that the assessable sum for the pending year decreases and
this is known as sans tax limit (Australian Government, 2018). It is relevant for the
occupants of Australia only.
Activity 12
1 What can payroll deductions include?
Answer:
Payroll deductions include:
 Wellbeing stores that are given to each worker.
 Superannuation, which is a voluntary retirement deduction made by the employees
and the benefits of the same are added later on.
 The Australian Taxation officer can deduct a sum from the assessable income of the
worker as a pay duty.
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 A certain portion is surrendered from the financial profit by the pay bundling
representatives.
2 Who and what is a creditor?
Answer:
A creditor can be a party that has a claim on the services provided by the other party. It can
be a banker, individual, association or an institution to whom the money is owed.
3 James has decided that he would like to have $130 per month deducted from his pay
and paid directly to his health fund. How would he do this? What would payroll need to
do?
Answer:
In the above case it is required that James writes in detail to the supply office what exactly he
needs and he shall sign the same. For making the demand acknowledged it is required to
cover the following segments:
 The individual name
 Is it a solitary or not?
 The period for which the fund shall be deducted shall be expressed
 The amount of sum to be deducted
It is the responsibility of the finance department to ensure that the coverage reserves carry a
course of event points.
Activity 13
1 Research and report organisational requirements for meeting superannuation
obligations.
Answer:
Superannuation Guarantee charge statement shall be recorded by the association. On the
regular basis the superannuation guarantee charges are paid to the ATO. This mainly happens
when there is negligence on the part of the association for super contributions, an adequate
measure of payments, a decision risk which is a super sum in workers picked finance.
2 Explain why a log book might be used, and how it would be completed.
Answer:
Log book is mainly used to record the important events of the operation, management and
navigation. It is mainly safeguarded for the costing techniques.
The following are recorded in the logbook:
 Record the odometer reading for each trip.
 The kilometres went during the Trip
 The goal of the trip to be recorded.
Activity 14
1 What is BAS?
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Answer:
BAS stands for Business Activity Statement which is offered by Australian Taxation Officer
to all the business organisations so that they can create their expenses.
2 What methods of payment will the ATO accept for PAYG payments from
organisations?
Answer:
The ATO accepts the electronic payments through the business houses that include:
 Direct Debit Payment
 Direct Credit Payment
 Bpay
3 Calculate the total tax if amount for FBT purposes is $187,000 and FBT rate is 46.5%.
Answer:
Total Tax = FBT Purpose*FBT rate
$187000*46.5
=$86955
Activity 15
1 What are the important dates that employers should abide by when issuing PAYG
Payment Summaries?
Answer:
 For business the date is 14th july
 For the bosses its 14th august
 For paying the pending superannuation the date is 30th june
2 What does payroll reconciliation involve?
Answer:
The Payroll reconciliation involves superannuation and tax assessments. Along with this the
Payroll reconciliation includes payments made to the ATO, superannuation funds,
creditors and staff.
3 What is the purpose of the PAYG payment summary statement?
Answer:
The PAYG payment summary gives the instalment outline to the ATO.
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References
Australian Government. (2018). fairwork.gov.au. Retrieved Feburary 13, 2019, from
fairwork.gov.au:
https://www.fairwork.gov.au/pay/pay-slips-and-record-keeping/record-keeping
Marsden, S. (2010). Australian Master Bookkeepers Guide [2009/10]. Australia:
McPherson's .
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