FNS40217 Payroll and Activity Statement Portfolio of Activities

This portfolio provides a comprehensive overview of payroll and activity statement tasks, covering various aspects such as GST registration thresholds, tax codes, PAYG installments, and quarterly GST reporting. It includes detailed calculations for GST payable under both cash and accrual bases, as well as the preparation of quarterly GST reports and reconciliations. The document also addresses specific scenarios like luxury car tax, wine equalization tax, and fuel tax credits. Furthermore, it delves into the role of bookkeeping businesses, compliance with Australian Taxation Office guidelines, and the use of accounting software like SAGE, SAP, and MYOB. The portfolio also covers important legal and ethical considerations, including the Privacy Act 1988 and requirements for tax agents. It concludes with an explanation of key concepts such as ABN, TFN, Medicare Levy, FBT, and superannuation laws, offering a holistic view of payroll and activity statement management. Desklib provides access to similar assignments and study resources for students.

Running head: PAYROLL
Payroll
Name of the Student:
Name of the University:
Authors Note:

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Contents
Part A:..............................................................................................................................................3
Task 1:.........................................................................................................................................3
Task 2:.........................................................................................................................................3
Task 3:.........................................................................................................................................6
Task 4:.........................................................................................................................................7
Task 5:.......................................................................................................................................11
Task 6:.......................................................................................................................................15
Task 7:.......................................................................................................................................20
Task 8:.......................................................................................................................................24
Task 9:.......................................................................................................................................26
Part B:............................................................................................................................................28
Task 10:.....................................................................................................................................28
Task 11:.........................................................................................................................................30
Task 12:.....................................................................................................................................31
Task 13:.....................................................................................................................................32
Task 14:.........................................................................................................................................33
Task 15:.....................................................................................................................................34
Task 16:.....................................................................................................................................36

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Task 17:.....................................................................................................................................38
Task 18:.....................................................................................................................................39
Task 19:.....................................................................................................................................40
Final assessment 2:........................................................................................................................41
FBT & Superannuation:.............................................................................................................41
Lodge Activity Statement:.........................................................................................................41
GST classifications:...................................................................................................................41
BAS case study:.........................................................................................................................42
PAYG installment:.....................................................................................................................49
Adjustments:..............................................................................................................................51
Handle payroll queries:..............................................................................................................52
Processing payroll:.....................................................................................................................52
References:....................................................................................................................................55

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Part A:
Task 1:
(a)
Most of the businesses are affected by Goods and Services Tax (GST) and thus, should be
registered for GST. Following is the threshold turnover limit for different business for GST in
Australia:
I. Annual turnover of $75,000 or more for General businesses.
II. In case of non-profit organization the threshold annual turnover limit is $150,000.
III. Taxi drivers must register for GST irrespective of the annual GST turnover (Ramli et. al.
2015).
(b)
Businesses with aggregate annual turnover less than $10 million are allowed to use wither cash
or accrual basis of accounting.
(c)
Business with annual aggregate turnover of in excess of $10 million must use accrual basis of
accounting for GST purposes.
Task 2:
Supply Tax codes
Taxable (10% GST-free Input taxed Exempt

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PAYROLL
rate)
Superannuation,
wages paid /
received
X
Supplies out for
exported goods
and services
X
Residential rent
income or
expenses
X
Money lent/
borrowed
X
Fresh food or
medicines
X
Purchase or sale
of an assets
X
Commercial rent
income or
expenses
X
Education and X

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childcare
Depreciation X
Council rates X
Fruit sales X
Received of
interests
X
Rental income
(Commercial)
X
Electricity
expenses
X
Milk purchased X
Purchase of
office furniture
X
Bank charges X
Oranges sold
(bag of oranges)
X
Payment of
interests
X

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Payment of
stamp duty
X
Payment of
water rates
X
Task 3:
(a)
Part (i):
Sales:
The invoice dated 13th May shall be reported in 4th quarterly period applicable for the month of
April, May and June and for other two invoices the 1st quarterly period in respect July, August
and September shall be used.
Part (ii):
Sales:
For all invoices of sales 4th quarterly period applicable for the month of April, May and June
(Ling et. al. 2016).
(b)
(i): GST payable under cash basis is $100.

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(ii): GST payable under accrual basis is calculated as following.
GST payable Amount
($)
Total sales inclusive GST 19,800.
00
GST payable for sales (19800 x 1/11) 1,800.
00
Total purchases 15,400.
00
GST paid on purchases (15400x 1/11) 1,400.
00
Net GST payable (1800 - 1400) 400.
00
Task 4:
PAYG instalment income
Particulars Amount
($)
Sales 55,000.

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00
Commercial rent received 22,000.
00
Interest received 1,200.
00
Dividend income 3,300.
00
(a) PAYG Instalment income 81,500.
00
Instalment rate 6.20%
(b) PAYG income tax instalment 5,053.00
(c)
PAYG instalment income
Particulars Amount
($)
Sales 55,000.
00
Commercial rent received 22,000.

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00
Residential rent received 8,800.
00
Interest received 1,200.
00
Dividend income 3,300.
00
Sale of business printer 2,200.
00
Sale of shares 4,400.
00
Instalment income (22000+8800+1200) 81,500.
00
Instalment rate 0.
06
PAYG instalment income (32000 x 11%) 5,053.
00
(d)

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Amount to be reported in at G1 label of BAS is $96,900.
Task 5:
Quarterly GST report and pay
Particulars Amount ($)
G1 62,221.25

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(61231.25+990)
G2 770.00
G3 462.55
G10 2,200.00
G11 13,311.59
Amount you owe the ATO
Particulars Amount
($)
1A 5,566.
48
1C
1E
4.00 2,899.
00
5A 2,918.
18
6A 3,000.