Payroll Data Preparation and Payment Authorization for Pitstop Pty Ltd

This assignment analyzes the preparation of payroll data and authorization of payments for Pitstop Pty Ltd, a retail and fuel service company. It involves calculating pay for each employee based on time sheets and employment status, including ordinary time, overtime, and various allowances. The report details the calculation of gross wages, tax withholdings (PAYG, HELP, and tax offsets), and net pay, considering factors like casual loading, Saturday loading, and superannuation contributions. It also covers the reconciliation of the payroll register, with specific examples for employees like Employee 001, Richard Swift, Paul Singh, and Al Carron, including details on deductions for child support and salary sacrifice. The assignment highlights the importance of accurate record-keeping, adherence to relevant legislation, and organizational procedures in managing payroll effectively. The assignment also includes a discussion on the forwarding of data on worksheets and the use of payroll registers for payment authorization.

Prepare payroll data and authorize payment
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK A : CALCULATING PAY AND PROVIDING PAY DATA.............................................3
Checking and time sheet hours for the fortnight ending 24th June 2012....................................3
Calculating pay for each employee on pay calculation work sheet.............................................3
Schedule forwarding of data on worksheet..................................................................................8
TASK B: RECONCILING PAYROLL REGISTOR AND AUTHORIZE PAYMENT................8
Reconciling the Bendigo pay registor..........................................................................................8
TASK C: HANLDING PAYROLL ENQUIRY..............................................................................9
Preparing payroll data and authorize payment.............................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
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INTRODUCTION
The preparation of payroll is the most important aspect for a business through which
appropriate financial data can be maintained for corporation. It consists of information related to
salaries, wages and bonuses as well as withheld taxes. Present report is based upon case scenario
of Pitstop Pty Ltd which is retail and fuel service company. The product and service range of
corporation consists of hot pies, supermarket goods, gas and cold drinks. In this regard, payroll
of workforce working in Pitstop has been calculated in worksheet. In addition to this, pay
register has been completed along with authorization. Apart from this, relevant legislation and
organizational procedures are also referred for preparing the pay roll sheet.
TASK A : CALCULATING PAY AND PROVIDING PAY DATA
Checking and time sheet hours for the fortnight ending 24th June 2012
The information such as time sheet, working hours and emplyement status are checked
for calculating fortnight payroll. It shows that different departments are there in Pitstop and
accordingly respective information has been recorded in excel sheet(Tao, Chuang and Lin,
2016). It has been found thatall fouremployees of Pitstop work in the employment
classification “retail workers level 2” and job title of the same is “store worker”. Furthermore,
two employees work on casual basis whereas remaining work for full time.
Calculating pay for each employee on pay calculation work sheet
The payroll processing procedure has been used for calculating pay for each employee.
Under this, first of all employees' detail is verified so that necessary changes and deduction can
be made from their salary account. It facilitates to prepare the payroll effectively and meeting
expectations of all related parties of Pitstop. However, store manager's approval is also taken for
the overtime thereby employees can effectively work with integration (Rockerbie and Easton,
2014). It aids to enhance their salary as they get opportunity to work for overtime. It is also
helpful for proper coordination and maintaining appropriate environment of business.
Thereafter, working hours of each workforce is verified by observing the time sheet. In
such manner operation manager will come to know that how many leaves are taken by workforce
and what were the total working hours. Furthermore, leave verification is also done by checking
the time sheet. The basic aim behind leave verification is to analyze allotted leave and those
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which are taken by employees. Apart from this, time sheet totals is complied for extracting all
relevant information for tax threshold and other details. Furthermore, due wage is also
calculated in accordance with working hours and basic wage paid for each employee. On the
other hand, tax withholding is calculated on the basis of gross pay for each employee. All these
taxes are subtracted from the gross pay where net income is calculated. This proves to be
effective for gathering information related to superannuation (contribution/salary sacrifices)
(Chung, Steenburgh and Sudhir, 2013). Moreover, payroll register is prepared by finance
manager wherein all detail of selected workforce is filled in the register. By assessing given
payroll register, HR department can assess performance of business as well as pay scale of each
workforce. This is because payroll has direct impact on net income generate by business due to
subtraction of tax. Moreover, individual pay information and pay register is sent to Pitstop head
office for detail inquiries and resolving all related issues of respective personnel.
The following sheet is providing detail information related to pay for each employees. It
shows that casual status of employment is there and accordingly working hours are observed.
Further, it has been found that no any leave has been taken by employee 001 and he is paying tax
worth 210 dollar.
Employee 001
Hourly rate: 18 Salary:
Pay period
Start date: 11 June
2012
End date: 24 June
2012
Forwarded to
head office
Gross wages Hours Rate
Ordinary time 52.5 1 945
Overtime (1.5*hourly rate) 0 1.5 0
Overtime (2*hourly rate) 10 2 360
Holiday pay (A/L) 0 1 0
Casual loading (25%) 0.25 236.25
Saturday loading (10%) 7.5 0.1 13.5
Holiday leave loading (17.5%) 0 0 0
Personal leave paid 0 1 0
Total 1554.75
Allowances
Car
Pre-tax deduction
Superannuation
Salary sacrifice
Taxes
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PAYG tax 210
HELP
Tax offsets
Total PAYG withholding 210 210
Deduction
Child support
Net pay 1344.75
Superannuation contribution
(@ 9% Ordinary+ Loading
from gross pay) 107.52
The following table is showing that Richard Swift is paying tax of 386 dollar on the gross
pay of 1359. However, he is in mandatory court order so he will pay for child support also. The
amount paid for child support is 50 dollar per week. Higher education loan program has also
been taken by Richard where 50 dollar will be deducted from the salary account. In such manner
gross salary is going down and higher tax rate is paid by him (Lu, Liu and Zhao, 2015).
Employee 002
Hourly rate 18 Salary
Pay period Start date: 11 June 2012
End date: 24 June
2012
Forwarded to
head office
Gross wages Hours Rate
Ordinary time 47 1 846
Overtime (1.5*hourly rate) 0 1.5 0
Overtime (2*hourly rate) 8 2 288
Holiday pay (A/L) 0 1 0
Casual loading (25%) 211.5 0.25 211.5
Saturday loading (10%) 14.4 0.1 14.4
Holiday leave loading (17.5%) 0 0.175
Personal leave paid 0 1
Total 1359.9
Allowances
Car
Pre-tax deduction
Superannuation
Salary sacrifice
Taxes
PAYG tax 386
HELP 54
Tax offsets 100
Total PAYG withholding 540 819.9
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Deduction
Child support 100
Net pay 719.9
Superannuation contribution
(@ 9% Ordinary+ Loading
from gross pay) 96.47
According to the following table, Paul Singh has salary of 1839 where tax also become
higher as 588. Though, he is taking advantage of car services for the use of company so that
accordingly he can manage all the allocated task in an effectual manner. It facilitates to save his
income and the gross pay increases in the same proportion (Jolly, 2015). Total PAYG
withholding for the respective employee is 688. However, net pay is 1215 just because of
payment of higher rate of tax.
Employee 003
Hourly rate 20 Salary:
Pay period Start date: 11 June 2012
End date: 24 June
2012
Forwarded to
head office
Gross wages Hours Rate
Ordinary time 38 1 760
Overtime (1.5*hourly rate) 60 1.5 60
Overtime (2*hourly rate) 2 2 80
Holiday pay (A/L) 760 1 760
Casual loading (25%) 0 0.25 0
Saturday loading (25%) 9.6 0.25 48
Holiday leave loading (17.5%)
(760*17.5%) 131.48 0.175 131.48
Personal leave paid 0 1 0
Total 1839.48
Allowances
Car 100 1939.48
Pre-tax deduction
Superannuation 100
Salary sacrifice
Taxes
PAYG tax 588
HELP
Tax offsets
Total PAYG withholding 688
Deduction
Child support
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Net pay 1251.48
Superannuation contribution
(@ 9% Ordinary+ Loading
from gross pay) 84.55
Employee 004
Hourly rate 18 Salary
Pay period Start date: 11 June 2012
End date: 24 June
2012
Forwarded to
head office
Gross wages Hours Rate
Ordinary time 76 1 2000
Overtime (1.5*hourly rate) 0 1.5 0
Overtime (2*hourly rate) 0 2 0
Holiday pay (A/L) 0 1 0
Casual loading 0 0.25 0
Saturday loading 0 0.1 0
Holiday leave loading (17.5%) 0 0.175 0
Personal leave paid 0 1 0
Total 2000
Allowances
Car 100 2100
Pre-tax deduction
Superannuation 100
Salary sacrifice 200
Taxes
PAYG tax 400
HELP
Tax offsets
Total PAYG withholding 700
Deduction
Child support
Net pay 1400
Superannuation contribution
(@ 9% Ordinary+ Loading
from gross pay) 180
According to the above table, it has been found that Al Carron is getting highest salary
because of his full time profile of job. Here, he is paid on annual basis where terms and condition
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also varies. This employee pays for car uses and other related expenses but also claim for
threshold.
Schedule forwarding of data on worksheet
The data sheet of overall record has been attached in mail. It consists of detail
information related to calculation of pay for fortnight. It proves to be effective to maintain
effective record and meeting expectations of individual in an effectual manner.
TASK B: RECONCILING PAYROLL REGISTOR AND AUTHORIZE
PAYMENT
Reconciling the Bendigo pay registor
The following sheet represent information with regard to Bendigo store. Here, four
workforce are observed in accordance with time sheet and other data of their pay scale. This
payroll register has been prepared on the basis of payroll of each workforce. All the presented
data are calculated on the fortnight basis through which exact information can be calculated
(Spitsin and et.al., 2015). First of all payment information is recorded by referring payroll of
employees and then accordingly deduction are made by calculating the PAYG tax and super
guarantee. This aids to contribute towards calculating the net pay (Super Guarantee (SG)
Contributions Calculator, 2016).
Payroll register for week ending: 24 June 2012
Payment Deduction
Empl
oyee
s
Ordi
nary
hour
s
O/T
(1.5*
)
Holi
day
pay
Leav
e
holdi
ngs
Sat.
Load
ing
Casu
al
loadi
ng
Pers
on
leave Car
Allo
wanc
es
Gros
s pay
Salar
y
sacri
fice
Supe
rann
uatio
n n
contr
ibuti
on
PAY
G
TAX
HEL
P
Othe
r
Supe
r
guar
antee
Net
pay
1 945 13.5
236.
25 0
1194
.75 0 210 0 32
984.
75
2 846 14.4
211.
5 0
1071
.9 0 386 54 29
685.
9
3 760 60 760
131.
48 48 0 0 100
1859
.48 0 100 588 0
23.5
6
631.
9
4
200
0 0 0 0 100
210
0 200 100 400 0 17.1
140
0
455 60 760 131. 75.9 447. 0 200 0 622 200 200 158 54 0 101. 370
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1 48 75 6.13 4 66 2.55
TASK C: HANLDING PAYROLL ENQUIRY
 According to the given information, it has been found that, Mr. Swift is working on
casual basis and earning enough amount in the form of salary/wage. The tax file number
of Richard is “675498760” and he also applied for HELP debt. For this purpose, store
manager can access their own payroll information by using effective model or method.
For example, company is using Myob software for keeping record related to all financial
data.
 He has strict order from court to pay child support. In this regard, 50 dollar is paid on
weekly basis. Owing to this, 50 dollars per week is deducted from the salary.
Furthermore, no threshold is claimed by Richard Swift but at the same time 50 dollar per
week is off-setted. Apart from this, $75 is not actually deducted from his pay, instead
only 50 dollar is being deducted from the pay (Jibrin, Ejura and Augustine, 2015).
 Richard can access to overtime but there might be some changes in rules and regulations.
Furthermore, child support agencies can be provided information related to employee's
salary. Child support deduction can be shown to agency through finance and operation
manager. However, payroll information of employees can be accepted by Store manager
and accordingly their queries can be resolved. It can be critically evaluated that
Australian court or federal state may demand for contribution towards fines and court
order. Owing to this, operation manager of selected organization can present the
respective information to party. However, Privacy Act 1998 will be complied by HR
department or operation manager of business. In this regard, no any information related
to internal workforce will be disclosed to third party.
 Here, Pitstop can handle query of Child Support Australia by showing the payroll of
Richard. It will serve as proof for Richard through which their right can be secured.
Furthermore, police will get detail information related to exact pay scale which is being
paid to Richard.
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Meeting with Mr Swift
Hello, Mr. Swift, I hope you are in good health and spirit. I am here to clear your doubts
on taxation and your payroll structure. Your tax file number is “675498760” that is registered as
per Australian taxation standards. Talking about your child support, it’s around $ 50 per week
that amount to $ 100 for fortnight. As per Australian standards, deduction of child supports is
always made at last that is after tax withheld deductions and salary sacrifice for voluntary
investments. Finally, your overtime is not at all related to your divorce status. Finally, we are
ready to have complete transparency in your deductions for child support to police or concerned
department. You can always visit for any kind of query
CONCLUSION
The aforementioned report concludes that payroll preparation can be done effectively by
using appropriate structure, However, regulatory framework must be kept into account through
which ethical consideration of business can be ensured. It can also be said that, payroll register
can be prepared at last for detail information of each employee working the organization.
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REFERENCES
Journals and books
Chung, D.J., Steenburgh, T. and Sudhir, K., 2013. Do bonuses enhance sales productivity? A
dynamic structural analysis of bonus-based compensation plans. Marketing Science. 33(2).
pp.165-187.
Jibrin, M.S., Ejura, S.B. and Augustine, N.I., 2015. System of Payroll in the Public Sector
Administration. Asian Development Policy Review. 3(1).pp.9-19.
Spitsin, V. and et.al., 2015. Comparative analysis of salary, labor intensity and payroll-
output ratio of Foreign and domestic firms: Case Russian vehicle industry. Ratio. 1500.
p.100.
Jolly, N.A., 2015. Revenue sharing and within-team payroll inequality in Major League
Baseball. Applied Economics Letters. 22(1). pp.80-85.
Lu, B., Liu, C. and Zhao, T., 2015. A three-tier salary management system for higher
vocational colleges. Int. J. Multimed. Ubiq. Eng. 10(4). pp.91-104.
Rockerbie, D.W. and Easton, S.T., 2014. Unsustainable Runs with Revenue Sharing and Salary
Caps. In The Run to the Pennant (pp. 43-51). Springer New York.
Tao, Y.L., Chuang, H.L. and Lin, E.S., 2016. Compensation and performance in Major League
Baseball: Evidence from salary dispersion and team performance. International Review of
Economics & Finance. 43. pp.151-159.
Online
Super Guarantee (SG) Contributions Calculator. 2016. [Online]. Available
through:<http://calculators.ato.gov.au/scripts/net/SGCalculatorWeb/
GetSGContribution.aspx?ms=Businesses>. [Accessed on 30th August 2016].
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