Organizational and Legislative requirement
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.
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. 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. 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. 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. 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. For data collection, there is need for the review of internal revenue service regulation. 5 1 $945 Overtime (1. 5 x hourly rate) 1.
5 Overtime (2 x hourly rate) 2 $360 Holiday pay (A/L) 1 Casual loading (25%) 0. 25 Saturday loading (10%) 0. 5 Holiday leave loading (17. 175 Personal leave paid 1 Total $1359. 90 Allowances Car Pre-tax deductions Superannuation $96. 47 Salary sacrifice Taxes PAYG Tax $244 HELP $54 Tax offsets Total PAYG withholding Deductions Child support Net pay $1061. 90 Superannuation contribution (@ 9% Ordinary + Loading from gross pay) Employee 003 Hourly rate: $20. 00 Salary: Pay period Start date: 11 April 2015 End date: 24 April 2015 Forwarded to head office: Gross wages Hours Rate $1806. 25 Saturday loading (10%) 0. 1 Holiday leave loading (17. 175 Personal leave paid 1 Total $2100 Allowances Car 100 Pre-tax deductions Superannuation $100 Salary sacrifice $200 Taxes PAYG Tax $302 HELP Tax offsets Total PAYG withholding Deductions Child support Net pay $1498 Superannuation contribution (@ 9% Ordinary + Loading from gross pay) $180 For this case of the workers above, each and every individual is to be paid a salary comprising of the allowances and the overtime worked by the individual.
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