Question 1
Please indicate the co
ect answer - ..
Payn1ent sun1111aries are due by 281h July - -- ~ True False
The Fair Work Act 2009 defines the minimum True False
standards for workers in Australia
A fringe benefit can from part of an employee's salary True False
packing
A person must have an ABN to register for PAYG True False
Instalments
Employees advise you of a HELP debt on the TFN True False
Declaration
To request an additional $20 tax be withheld from your True False
pay you must complete a Withholding form
As a payroll officer, you can approve all changes to True False
payroll data
All tax payers must pay the Medicare Levy of 2% True False
A small withholder is a business that withholds $50,000 True False
PAYG tax
You do not need WorkCover if you only have one True False
employee
Question 5
On the 2nd July 2018 Mark retired from his employment after being with the company
for 18 years. He had reached retirement age and had decided that now was a good
time to retire (this is not part of an early retirement scheme).
On the date he retired he had 1 weeks outstanding pay for time worked, 76 hours of
Annual leave owing, 95 hours of unused personal leave and 190 hours of unused
long service leave. His cu
ent pay rate is $28 per hour and a normal working week
is 38 hours. He claims the tax-free threshold and has no applicable offsets.
Mark has supplied his TFN and is entitled to leave loading.
Required: Determine Mark's termination pay, refe
ing to the Termination Payments
Summary table. Also refer to the following website to help work out PAYG withheld.
https:
vvww. ato. gov.au/Rates/Schedule-7---Tax-table-for-u n used-leave-payments-
on-termi nation-of-employment/?page= 1 #Working out the withholding amount
At the end of tis document you will find a table laying out the steps you will need to
follow from the ATO website.
Steps to work out Marginal tax calculation on Eligible
Termination payments for Question 5
Instructions Amount$
Using the relevant PAYG withholding tax table, work out the
amount to withhold from your employee's normal gross
earninQs for a regular pay period
Divide the amount of the termination payment (for unused
leave and loading) for by the number of normal pay periods in
12 months (12 monthly payments, 26 fortnightly payments or
52 weekly payments).
Ignore any cents.
Add the amount at step 3 to the normal gross earnings for a
single pay period.
Use the same PAYG withholding tax tables used at step 1 to
work out the amount to withhold for the amount at step 4.
Subtract the amount at step 1 from the amount at step 5.
Multiply the amount obtained at step 6 by the number of normal
pay periods in 12 months (12 monthly payments, 26 fortnightly
payments or 52 weekly payments).
Gross Payment (Weeks work and Termination Payment)
Tax to be withheld (on the above)
Net Payment to be received