Payroll Accounting Questions

1. Complete the following chart, indicating the grace period and due date.  

• True or False. If an organization does not pay the garnished monies to the courts, or fails to act on an order, the employee is still held responsible for the entire amount.  

• True or False. Employers can choose when to remit the union dues withheld from an employee’s pay.  

• Name the three types of deductions that are remitted to the union.  

  True or False. In all jurisdictions, the remittance deadline for member contributions to a defined benefit plan is different from the remittance deadline for employee contributions to a defined contribution plan.  

  Under the federal Pension Benefits Standards Act (PBSA), when must an employer’s current service contributions for defined benefit pension plans be remitted to the pension fund?  

  Provide two reasons why employer contributions to a registered pension plan should be tracked.  

• Who maintains the relevant employee records in a group insurance plan billed system?  
• What are the employer’s responsibilities under a self-administered group insurance billing system?  

• List five examples of voluntary payroll deductions.  

Refer to your student manuals, relevant legislation, industry documentation and the Fair Work Australia and ATO websites as required.
You may also be required to conduct internet research to complete the following questions.
QUESTION 1
Compile a list (minimum of 5) of the legislation, regulations and taxation systems relevant to salary packaging arrangements and allowances and describe the key features of each
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QUESTION 2
List the keys features (at least three) of each of the following types of superannuation funds:

• Industry Funds

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• Retail Funds

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• Self-Managed Super Funds (SMSFs)

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QUESTION 3
What are the employee eligibility requirements for superannuation guarantee contribution?
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QUESTION 4
List the key features of each of the following types of superannuation payments:

• Employer contributions

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• Employee contributions

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• Salary Sacrifice super

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QUESTION 5
What is the difference between defined benefits and accumulation type super?
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QUESTION 6
Explain the impact an organisation’s employment contract or legal entity has on their superannuation obligations?
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QUESTION 7
Describe how the government co-contribution scheme operates, including the key rates and thresholds.
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QUESTION 8
Explain the difference between the total employment costing model and the gross salary plus benefits model for salary packaging.
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QUESTION 9
Explain some of the benefits to the organisation of providing employee’s with salary packaging options?

Your organization is a floral supply company with employees in the following jurisdictions:

• Manitoba
• Prince Edward Island
• Yukon

The organization is planning to implement a company-wide policy with respect to vacation leave and vacation pay that provides the same benefits to all employees, regardless of their province of employment. As the Payroll Supervisor, provide Cheryl Mark, the Director of Finance, with the following information:

• Identify four specific items relating to vacation leave and vacation pay that will have to be addressed in the policy to ensure compliance with the employment/labour standards in each jurisdiction.

Research the details for each of the items you have identified using the course material and the employment/labour standards website for each jurisdiction.

• Using the results of your research, provide your recommendations to Ms. Mark on how to address each of these items in the policy to provide the employees with the best benefit, while keeping the cost to the organization at a minimum. Explain your reasoning.

You have just been advised that your organization is opening an office in Québec. Describe the employer contributions that are specific to the province of Québec, their rates and thresholds where available. (Do not include the organization’s portion of the statutory deductions.)

Choose three of the following changes that may be negotiated in a collective agreement and provide an example of how each would impact the payroll department.

• Timing of changes
• Changes to salaries, wages, overtime rates
• Paid absences
• Group benefits
• Retroactive payment dates
• Method of payment for retroactive adjustment

Your organization is a floral supply company with employees in the following jurisdictions:

• Manitoba
• Prince Edward Island
• Yukon

The organization is planning to implement a company-wide policy with respect to vacation leave and vacation pay that provides the same benefits to all employees, regardless of their province of employment. As the Payroll Supervisor, provide Cheryl Mark, the Director of Finance, with the following information:

• Identify four specific items relating to vacation leave and vacation pay that will have to be addressed in the policy to ensure compliance with the employment/labour standards in each jurisdiction.

Research the details for each of the items you have identified using the course material and the employment/labour standards website for each jurisdiction.

• Using the results of your research, provide your recommendations to Ms. Mark on how to address each of these items in the policy to provide the employees with the best benefit, while keeping the cost to the organization at a minimum. Explain your reasoning.

Your employer is considering adding a group term life insurance plan to the employee benefit package. The premium cost would be fully paid by the organization. Explain how this will impact:

• the employees’ net pay
• the employer’s payroll costs

When an organization decides to terminate its employees in certain number on any circumstances it needs to select the employees with valid reasons. The service of any of the following employee can be terminated:

• Dismissal for any disciplinary action
• Poor Performance
• Contract termination
• VRS - voluntary retirement service (golden handshake)
• actual retirement attaining age as per the government norms
• termination based on disablement

if at all there’s no possibility to find any of the stated reason and still the organization wants to terminate its employees with reduces its unwanted cost by downsizing,

List the health care funding methods used in Canada. State the health care funding method used in your jurisdiction and describe the payroll implication, if any.

In the past your organization has encountered problems implementing the changes required by new union collective agreements. These problems have included being unable to meet agreed deadlines for processing retroactive pay and implementing new earnings and deductions. It is time once again for negotiations and, as Payroll Manager, you would like to be part of the process. After discussions with the Vice-President, Finance, you have been asked to provide a written document outlining the advantages of having payroll participate in this process.

Prepare a memo to the Vice-President outlining the problems you have encountered in the past and how they could have been avoided if you had been part of the negotiation process.

Wayland Custom Woodworking is a firm that manufactures custom cabinets and woodwork for business and residential customers. Students will
have the opportunity to establish payroll records and to complete a month of payroll information for Wayland. Wayland Custom Woodworking is
located at 1716 Nichol Street, Logan, Utah, 84321, phone number 435-555-9877. The owner is Mark Wayland. Wayland’s EIN is 91-7444533, and
the Utah Employer Account Number is 99992901685WTH. Wayland has determined it will pay its employees on a semimonthly basis. Federal
income tax should be computed using the percentage method.
For Part 1 of this project, you will complete payroll for the last month (December) of the fourth quarter (Q4) of 2019, which consists of the final pay
periods of the year. Once payroll has been completed for the fourth quarter, you will then file the annual tax forms for Wayland as well as prepare
each employee’s Form W-2 in Part 2.
The SUTA (UI) rate for Wayland Custom Woodworking is 2.6 percent on the first $35,300. The state withholding rate is 4.95 percent for all income
levels, deductions, and marital statuses, a table has been included to assist with calculations of state tax due for employees.
Rounding can create a challenge. For this project, the hourly rate for the individuals should be rounded to five decimal places. So, take their salary
and divide by 2,080 (52 weeks at 40 hours per week) for full-time, nonexempt

Each jurisdiction outlines late filing penalties for the annual statement of payroll for workers’ compensation.

Your organization operates in Saskatchewan. You filed your annual Employer Payroll Statement on March 30th of the current year (see Current Year calendar in the course material). The total assessable earnings for the previous year were $925,188.15. The assessment rate per $100 for your organization is $1.41.
During the first week of March, two of your employees were injured at work.
Calculate the late filing penalty for missing the filing deadline and explain any possible additional costs to the employer related to this oversight. What process will you put in place for next year to avoid this issue?