Organizational and Legislative requirement

Document Type:Coursework

Subject Area:Finance

Document 1

The Australian taxation office is the first to start with since its in charge of the administration of the pay as you go withholding system (PAYGW). This system will be in charge of the collection of the PAYGW on behalf of the employees. It has a responsibility of a strong role that is the administration of superannuation reporting, superannuation guarantee system (SG) and the superannuation guarantee charge (SGC) which are the legislations used in the administering of payroll hence the system to be designed has to take this legislation into consideration. The Tax practitioners board has a responsibility of administration of Tax Agents Services Act 2009 (TASA). This board is in charge of activities of individuals who administer fees to people for the dealing of certain tax obligations. The system that is to be designed has to have some part that takes into consideration the legislation that involves this body. Hence the result for the designing of the payroll system should be considering this first. Fair work commission has the obligation to administer the Fair Work Act 2009, this is a national system that includes the far-reaching applications that have an effect on pay rates, hours worked, leave, discrimination, termination, minimum wage, working conditions, payslips among many others. This system works with all the required Australian legislations since it takes into consideration all the policies that govern payroll. Hence the payroll system to be designed should have to take this legislation into consideration since it forms the major and most important part of payroll.

Sign up to view the full document!

Steps in establishing payroll system Review The payroll system which is to be developed, has to do has to have many features. First the payroll system has to be designed and have different languages since not all the employees can be able to speak or read English properly. So, there is need that a payroll system be designed that can be in a manner that once the cash is disbursed into their mobile platforms they can read in their own language. Payment will be fortnight and not weekly as it used to be hence the payroll to be designed has to deal with payment which is on daily basis and each store will have its own separate payroll system so as not to mix up employees from different stores. Design Designing and setting up of a payroll system is a major step in which any business sets itself up and off the ground.

Sign up to view the full document!

To finish the data collection by establishing and also verifying the card information, the department managers to verify the card information and attendance of the employees too. Payroll processing phase will entail creating, printing and the distribution of the paychecks. When using a computerized system in payroll it automatically automates the paychecks and there will be need to set up the updates system so as to ensure that the system gets updates to the payroll tax tables. Payroll tax filling is essential so as to ensure that there is no rubbing of shoulders with the state tax agencies. The PAYGW will help the employer in submission of the withholding and payroll tax reports quarterly or even annually. The physical layout of the physical layout of the payroll department sometimes has to be taken into consideration, where the information that is dealing with the payroll is kept has to be more than secure and the doors to the offices locked with the only access given to the payroll employees only.

Sign up to view the full document!

Security of employee payroll information Need arises to limit the access of payroll information. Like for instance individual employees need to access their own records and so cannot be able to view the records of the other employees. Allow that each employee can be given access to only personal or individual information only and under request. Establishment of electronic security is important since it will help keep the information of all the employees confidential. In order to take merits of ATO’s limit the employee is always advised to always have all the written evidence of his expenditures which were incurred when travelling unless the substantiation is not required for that matter. The employee is always urged to be aware of the reasonable rates for expenditure as its defined by the ATO’s.

Sign up to view the full document!

Procedures document to support financial control or the safeguarding of resources. In order to safeguard resources, the company has to adopt the following financial policies in order to control and safeguard its resources. Management policies, the accounting and finance staff have to ensure that relevant accounting standards are achieved. One-page reflection on the process of designing the payroll system Designing and setting up of a payroll system is a major step in which any business sets itself up and off the ground. There is need to take into consideration of an electronic payroll system since it will reduce time used in payroll processing, maintain accuracy and help to remain in compliance with the tax laws and regulations. Internal controls are important to creating secure and efficient payroll system. Creating a written control policy statement and incorporate the internal controls when designing the system.

Sign up to view the full document!

Take a review of the labor laws of the individual state. The IRS and the state tax agencies will always require that the employer submit the withholding and payroll tax reports quarterly or even annually. Then you need to set up an online account that will help in transmitting tax payments to the state agencies and make sure the taxes reach the state agencies before the deadline period that is given. The organization and legislative are met in each and every step in the following manner: First, the labour laws of the state are met since before deciding to pay employees there is a need that arises that you visit the laws on how often to pay the employees. The organization requirement that is met up in the design step is the review of internal control of the organization.

Sign up to view the full document!

For data collection, there is need for the review of internal revenue service regulation. Holiday leave loading (17. Personal leave paid 1 Total $1554. Allowances Car Pre-tax deductions Superannuation Salary sacrifice Taxes PAYG Tax $214 HELP Tax offsets Total PAYG withholding Deductions Child support Net pay $1340. Superannuation contribution (@ 9% Ordinary + Loading from gross pay) $107. Employee 002 Hourly rate: $18. Salary: Pay period Start date: 11 April 2015 End date: 24 April 2015 Forwarded to head office: Gross wages Hours Rate $1806. Ordinary time 1 $760 Overtime (1. x hourly rate) 1. Overtime (2 x hourly rate) 2 Holiday pay (A/L) 1 $760 Casual loading (25%) 0. Saturday loading (25%) 0. Then the net salary is to be paid to the individual and the necessary deductions done. Administering of salary records BAS summary for Q4 Amounts you owe the Australian Taxation Office GST on sales or GST instalment 1A $250,000 Wine equalisation tax 1C $0 Luxury car tax 1E $0 PAYG tax withheld 4 $ PAYG income tax instalment 5A $187,500 FBT instalment 6A $ Deferred company fund instalment 7A $0 Amount owed 8A $ Amounts the tax office owes you GST on purchases 1B $75,000 Wine equalisation tax refundable 1D $0 Luxury car tax refundable 1F $0 Credit from PAYG income tax instalment variation 6B $0 Credit FBT instalment variation 8B $0 Total owed to ATO (8A - 8B) $ PittStop Inc (Bendigo) PAYG payment summary worksheet Number of individual payment summaries 4 Total gross payments $118,326 Total tax withheld $25,780 Date summary sent to ATO 26/7/2016 Date summary sent to employee 26/7/2016 PittStop Inc individual payment summary worksheets Sue Wang Tax file number 789654326 Tax withheld $5,564 Gross payments $24,750 Reportable FBT amounts $0 Superannuation $2,795.

Sign up to view the full document!

Allowance (specify) $0 Allowance (specify) $0 Date summary sent to ATO 26/7/2016 Date summary sent to employee 26/7/2016 Richard Swift Tax file number 675498760 Tax withheld $2,508. Gross payments $21,996 Reportable FBT amounts $0 Superannuation $2,508. Allowance (specify) $0 Allowance (specify) $0 Date summary sent to ATO 26/7/2016 Date summary sent to employee 26/7/2016 Paul Singleton Tax file number 342769865 Tax withheld $7,020 Gross payments $21,996 Reportable FBT amounts $0 Superannuation $3,852.

Sign up to view the full document!

From $10 to earn access

Only on Studyloop

Original template

Downloadable