Payroll Management Policies and Applicable Tax for Fast Food Restaurant Employees

This article discusses the payroll management policies for efficient management of payroll system and applicable tax for fast food restaurant employees. It also includes employee pay slip, tax number declaration form, employee payment summary, Form 8A and Form 8B.

Running head: DIPLOMA OF ACCOUNTING
Diploma of Accounting
Name of the Student:
Name of the University:
Authors Note:

1DIPLOMA OF ACCOUNTING
Contents
Part C:..............................................................................................................................................2
Requirement 1:.................................................................................................................................2
Payroll management policies:......................................................................................................2
Security:...................................................................................................................................2
Substantiation of claims for allowances:.................................................................................2
Measures to safeguard financial resources:.............................................................................2
Payroll checking and authorization of salaries and wages payment:......................................2
Reconciliation:.........................................................................................................................3
Enquiries of employees related to salaries and wages:............................................................3
Requirement 2:.................................................................................................................................3
Applicable tax:.............................................................................................................................6
Employee pay slip:......................................................................................................................7
Tax number declaration form:.....................................................................................................9
Employee payment summary......................................................................................................9
Form 8A:....................................................................................................................................10
References:....................................................................................................................................12

2DIPLOMA OF ACCOUNTING
Part C:
Requirement 1:
Payroll management policies:
Management of payroll is an important part of overall management of an organization. A
standard payroll management system must have the following attributes to ensure efficient
management of payroll system (Laudon & Laudon, 2016).
Security:
The security is of utmost importance in the payroll management system. The information
in the payroll system should be secured and confidential. The system must not be allowed to be
used by anyone except the payroll manager. Strong authorization procedure should be inbuilt in
the system to ensure that except eligible person no one is allowed access in the system. Physical
security of files is equally important hence, all necessary precautions shall be taken such as
having a separate physical location for the computers in which the files are stored (Nicholas &
Steyn, 2017).
Substantiation of claims for allowances:
I. The claims shall be substantiated from records.
II. Necessary documents such as employee registrar and pays slips shall be verified.
III. Cross checking with the relevant departments before finalizing the claims of allowances
(Laudon & Laudon, 2016).
Measures to safeguard financial resources:
I. Identifying the appropriate legislations that shall govern the wages and salaries payments.

3DIPLOMA OF ACCOUNTING
II. Ensure that the provisions applicable to the organization are complied with in making
payments to the employees and workers.
III. Recording all information correctly in the payroll system (Balazs, Liu-Barker, Foiles,
Thomas & Lee, 2016).
Payroll checking and authorization of salaries and wages payment:
I. The payroll manager must check the payroll with appropriate documents before making
payments.
II. All necessary deductions must be made from gross salaries and wages before making
payment to the employees and workers.
III. Authorization from respective department heads shall be obtained before making payment to
employees and workers (Feinsmith, 2015).
Reconciliation:
The process of reconciliation of salaries, wages and deduction shall be carried out by following
the procedures mentioned below:
I. Gross salaries and wages calculated shall be reconciled with the appropriate pay rates of the
workers and employees.
II. Taxes deducted from gross salaries must be in accordance with the provisions of the Income
Tax Assessment Act 1997.
III. Adjustment for bonus and rewards along with absence from work must be checked properly
(Debroux, 2017).
Enquiries of employees related to salaries and wages:
I. Employees’ enquiries must be dealt with specifically by the payroll managers.
II. Payroll managers must resolve all the queries of employees and workers.

4DIPLOMA OF ACCOUNTING
III. All deductions shall be shown to the employees and workers to ensure they understand the
deductions properly (Nielsen, Chambers & Farr, 2014).
Requirement 2:
Employees Gross pay
John Ryan
1,042.00
Janice Wright
871.00
Robert Jones
625.00
Mary Jacobs
617.00
Rebecca Wong 120.00
Calculation:
Days Monda
y
Tuesda
y
Wednesda
y
Thursda
y
Friday Saturda
y
Sunda
y
Gross
pay

5DIPLOMA OF ACCOUNTING
John Ryan 8.00 11.00 8.
00
8.00 6.0
0
1,041.9
1
181.20 249.15 181.
20
226.48 203.8
8
Janice Wright 8.0
0
8.0
0
8.00 8.
00
6.00 870.5
8
176.3
2
176.3
2
176.32 176.
32
165.30
Robert Jones 8.0
0
8.0
0
8.00 3.0
0
624.7
7
166.3
2
166.3
2
207.92 84.2
1
Mary Jacobs 8.00 8.00 5.00 5.5
0
616.9
8
166.32 166.32 129.95 154.3
9
Rebecca Wong 6.50 4.00
67.54 51.96 119.50

6DIPLOMA OF ACCOUNTING
Template:
Days Monday Tuesday WednesdayThursday Friday Saturday Sunday Gross pay
John Ryan Level 3 - In chrage of more than 2 persons Full time 8.00 11.00 8.00 8.00 6.00
181.20 249.15 181.20 226.48 203.88 1,041.91
Janice Wright Level 2 Full time 8.00 8.00 8.00 8.00 6.00
176.32 176.32 176.32 176.32 165.30 870.58
Robert Jones Level 1 Casual 8.00 8.00 8.00 3.00
166.32 166.32 207.92 84.21 624.77
Mary Jacobs Level 1 Casual 8.00 8.00 5.00 5.50
166.32 166.32 129.95 154.39 616.98
Rebecca Wong Level 1 Casual 6.50 4.00
67.54 51.96 119.50
As can be seen that firstly, the employees have been classified under full time and casual
categories as the payment to the employees vary depending on their status of employment. It is
clear that John Ryan and Janice Wright are only full time employees of the fast food restaurant
whereas other three employees, namely Robert Jones, Mary Jacobs, and Rebecca Wong are
casual employees (Shoham, Bank, Cobbe, Matta, Rubin, Weiner & Toft, 2015). In fact Rebecca
Wong is under 17 worker for the restaurant and accordingly, her wage rate is different from the
other employees. The hourly wage rates are different for day evening and night shift (Lim,
2016). The hourly rate of wages also varies during week days and weekends. Taking into
consideration all these the calculation of gross pay has been made. The total number of hours
worked by these employees on different days have been determined as cab ne seen in the above
template as well as brief calculation table provided above (Angeles, 2015). Accordingly,
appropriate rate of wages has been ascertained based on the day when the employees have
worked. Multiplication of appropriate hourly wage rates with the number of hours worked during
a particular day has helped in calculating the gross wage of that particular day (Goetsch & Davis,
2014). By following this method the total weekly gross pay has been calculated for the fulltime
and casual employees. It is also important to mention that the level of employees are different as
some belongs to level 1 whereas some belongs to level 3. Since the wage rate varies on the basis

7DIPLOMA OF ACCOUNTING
of the level of an employee hence it was important to determine the appropriate level of all
employees accordingly, the level of all employees have been determined to use appropriate
hourly wage rate pot calculate gross pay of the works and employees of fast food restaurant (Vos
& Slavin, 2015).
Applicable tax:
Employees Gross pay ($) Applicabl
e tax ($)
John Ryan
1,042.00
197.0
0
Janice Wright
871.00
138.0
0
Robert Jones
625.00
64.0
0
Mary Jacobs
617.00
62.0
0
Rebecca Wong 120.00
-

8DIPLOMA OF ACCOUNTING
Employee pay slip:
ABC Fast Foods Pty Ltd pay advice slip
Employers ABN: 12 345 678 910
Employee no: 2 Date of payment:
16/07/2018
Pay period ending:
15/07/2018
Employee’s name: Janice Wright
Employment status: FT Supervisor C2
Wages, allowances and overtime Hours Rate Amount
Wages Standard hours 32 22.04 705.28
Wages Overtime rate Sat 6 27.55 165.3
Wages Overtime rate 2

9DIPLOMA OF ACCOUNTING
Allowance 1 Laundry
Allowance 2
Public Holidays
Gross pay 871
PAYG tax 138.
00
Net pay 733.
00
Superannuation guarantee levy

10DIPLOMA OF ACCOUNTING
Tax number declaration form:
TFN 100 489 128
Name Ms Jennifer Brown
DOB: 05-06-88
Address 10 James St, Burleigh Q 4220
Status of the employee Casual
Employee payment summary
Details Amount
($)
Gross weekly pay
871.00
Number of weeks (Assuming 44 weeks) 44
Gross annual pay
38,324.00
Tax withheld
6,072.00
Net pay

11DIPLOMA OF ACCOUNTING
32,252.00
Form 8A:
Particulars Amount ($) Amount ($)
GST collected
15,000.00
GST paid
9,500.00
GST payable
5,500.00
Form 8B:
Particulars Amount ($) Amount ($)
Tax withheld from staffs
6,500.00
Less: PAYG income tax
instalment 2,300.00
Liability for tax withheld

12DIPLOMA OF ACCOUNTING
4,200.00

13DIPLOMA OF ACCOUNTING
References:
Angeles, P. (2015). U.S. Patent No. 9,058,416. Washington, DC: U.S. Patent and Trademark
Office.
Balazs, A. G., Liu-Barker, X. C., Foiles, D. L., Thomas, M. P. I., & Lee, R. E. (2016). U.S.
Patent No. 9,444,824. Washington, DC: U.S. Patent and Trademark Office.
Debroux, P. (2017). Human Resource Management in Japan: Changes and Uncertainties-A New
Human Resource Management System Fitting to the Global Economy: Changes and
Uncertainties-A New Human Resource Management System Fitting to the Global
Economy. Routledge.
Feinsmith, J. B. (2015). U.S. Patent No. 9,002,900. Washington, DC: U.S. Patent and Trademark
Office.
Goetsch, D. L., & Davis, S. B. (2014). Quality management for organizational excellence. Upper
Saddle River, NJ: pearson.
Laudon, K. C., & Laudon, J. P. (2016). Management information system. Pearson Education
India.
Laudon, K. C., & Laudon, J. P. (2016). Management information system. Pearson Education
India.
Lim, K. (2016). U.S. Patent No. 9,407,662. Washington, DC: U.S. Patent and Trademark Office.

14DIPLOMA OF ACCOUNTING
Nicholas, J. M., & Steyn, H. (2017). Project management for engineering, business and
technology. Routledge.
Nielsen, S., Chambers, C., & Farr, J. (2014). U.S. Patent No. 8,626,571. Washington, DC: U.S.
Patent and Trademark Office.
Shoham, Y., Bank, J. E., Cobbe, K., Matta, A., Rubin, M., Weiner, Z. I., & Toft, K. T.
(2015). U.S. Patent Application No. 14/076,046.
Vos, M., & Slavin, J. (2015). U.S. Patent No. 9,037,536. Washington, DC: U.S. Patent and
Trademark Office.