Diploma of management assignment Essay Example

  • Category:
    Management
  • Document type:
    Assignment
  • Level:
    College
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    2
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    995

7Business management

Location

Tax file declaration form

These forms provide information which allows people to personally calculate the amount of money an employer can withhold from payments to specific employee. Any new employee is legally required by law to complete tax file declaration form with correct information in order to be deducted correct tax rates (King and Case, 2015). Furthermore, tax file declaration form for employees are significant since it’s a requirement for business to comply with ATO audit or else the non-compliant business will be made liable to pay such tax owed with additional fines (Niemirowsku and Wearing, 2006). According to ATO regulations, employees should submit their tax file declaration form ideally before their first payday failure to which employer is obliged to deduct tax from employee pay at a rate of 48.5 percent.

Withholding Declaration

At the first payment, the declaration is withheld after it is provided by the employee. Moreover withholding declaration informs an employer on the expected adjustments they should make to the rate of withholding in cases where employee claims entitlement to tax offsets. According to the Australian law and regulations governing tax rates, an existing employee can make changes to their withholding declaration especially if they are working a second job, anticipating family tax benefits and rebates in advance.

Employer Obligation

Employer obligations are the responsibilities and the legal requirements that employers must meet before and after involving individuals for employment according to the employment rights. Superannuation guarantee refers to a compulsory system offering support for employees and is normally paid for by the employing organization. Specifically this is an Act which guides in calculating the SG charge just like distribution of such payments received (Paatsch and Smith, 1992).

New Employee Processing

The vacancies are publicly announced for qualified people to apply. The applicants that meet the requirements are interviewed after being shortlisted. The best is selected according to the scores in the interview. Human resource coordinators identify the person who suits the job then the person is invited for orientation and then gets employed (Niemirowsku and Wearing, 2006).

Payroll Taxes

These are taxes imposed by the Revenue Commissioner on either the employer or their employees and are usually calculated as a percentage of the wages expense if imposed the employing organization and as a percentage of the salary earned if imposed to the employee. More specifically payroll taxes are a percentage of the salaries which employers pay to their staff and typically this kind of tax falls into either deduction made on employee’s wages or those taxes paid by the employing organization according to the salary paid to a particular employee whereas PAYG commonly referred to as Pay as you go are those incremental amounts of money that the employing organization with its staff are expected to pay at the end of the year income tax liability. While PAYG tax applies to businesses of all sizes without considering the number of staff one is paying, Payroll tax mostly applies to larger business and whose total wage bills normally exceeds a certain threshold (Yaniv, 1988).

Payment summary

Payment summary is a short document containing information about taxable income and tax Centre link related payments that an employee normally receives within a given fiscal year. It describes payment type, duration over which payments were made as well as tax deducted and tax exemptions.

When to Submit PAYG to ATO

PAYG Payment summaries should be submitted at the end of every fiscal year and the documents should give information on the specific amount of money each employee was paid as well as the amount that was withheld from those payments. Submission of these documents is a fulfillment of ATO laws and regulations on taxation (Niemirowsku and Wearing, 2006).

Business Activity Statement (BAS)

Business activity statements typically means tax reporting requirements which are normally issued by businesses on either a monthly or quarterly basis. Lederman (2002) points out that business activity statement are significant for reporting and paying goods and services tax, PAYG installments, PAYG withholding tax as well as other tax obligations.

The government Authorities that must regularly receive the pay

The Federal government is in charge of taxes in conjunction with the Commissioners of State Revenue who closely monitor the activities carried out by the Office of the State Revenue (OSR). The organizations hand the deductions from the staffs to these authorities (King and Case, 2015).

Appendix 4: Work sheets

Pistop (Bendigo) PAYG Payment Summary worksheet

Number of Individual payment summaries

Total Gross Payments

$500,000

Total Tax Withheld

Date Summery sent to ATO

31/12/2015

Date Summery Sent to Employee

31/12/2014

Pitstop Individual payment summary worksheet

Tax file number

S087660W

Tax withheld

Gross Payments

Reportable FBT amounts

Superannuation

Allowance (car)

Allowance (house)

Date summary sent to ATO

31/12/2015

Date summary sent to employee

31/12/2014

Richard Swift

Tax file number

S087660W

Tax withheld

Gross Payments

$125,000

Reportable FBT amounts

Superannuation

Allowance (House)

Allowance (Car)

Date summary sent to ATO

31/12/2015

Date summary sent to employee

31/12/2014

Paul Singh

Tax file number

S087660W

Tax withheld

Gross Payments

$132,435

Reportable FBT amounts

Superannuation

Allowance

Allowance

Date summary sent to ATO

31/12/2015

Date summary sent to employee

31/12/2014

Al Carron

Tax file number

S087660W

Tax withheld

Gross Payments

$200,000

Reportable FBT amounts

Superannuation

Allowance

Allowance

Date summary sent to ATO

31/12/2015

Date summary sent to employee

31/12/2014

References

King, D. And Case, C., 2015. An international individual income tax comparison: the united states, Australia, and united kingdom. Editorial review board, p.77.

Lederman, L., 2002. Tax compliance and the reformed IRS. U. Kan. L. Rev., 51, p.971.

Niemirowsku, P. And Wearing, A.J., 2006. Do Australian Taxation Office Staff and Compliant Taxpayers Identify with Tax from the Same Perspective, Or Are There Significant Degrees of Separation. J. Austl. Tax’n, 9, p.119.

Paatsch, D. And Smith, G., 1992. Regulation of Australian Superannuation: An Industrial Relations Law Perspective, The. Corp. & Bus. LJ, 5, p.131.

Yaniv, G. (1988). Withholding and non-withheld tax evasion. Journal of Public Economics, 35(2), pp.183-204.