A step by step approach to Establish and Maintain a Payroll System using MYOB AccountRight Plus v19.8

Transcription

1 A step by step approach to Establish and Maintain a Payroll System using MYOB AccountRight Plus v19.8 Software Publications Pty Ltd, 2013 No part of this material may be reproduced or copied in any form or by any means (graphic, electronic or mechanical, including photocopying or by information retrieval systems) without permission in writing from Software Publications. Originating author Marian Brown Dip T (Commerce), MICB BAS Agent Cert IV Workplace Training and Assessment, Cert IV in Financial Services (Bookkeeping) MYOB Certified Consultant for 17 years, MYOB Accredited Author, MYOB Accredited Trainer Revised by Leanne Berry, MICB BAS Agent Cert IV in Financial Services (Bookkeeping) Cert IV Workplace Training and Assessment Cert IV in Small Business Management Cert IV in Frontline Management Cert II in Quality Management MYOB Certified Consultant for 8 years MYOB Accredited Trainer, MYOB Accredited Author, Member MYOB Partner Advisory Group Reviewed and endorsed by Publisher Software Publications Pty Ltd (ABN ) Unit 10, 171 Gibbes Street Chatswood NSW ISBN FNSBKG405A Establish and maintain a payroll system Software Publications Pty Ltd,

2 Foreword This training workbook provides an easy to follow approach on how to establish and maintain a payroll system. ICB have worked through this manual with the writers to ensure that the procedures are accurate and reflect how to run a true payroll system. Payroll can be a daunting process but with the help of this manual you will be guided through the payroll process. Institute of Certified Bookkeepers (ICB) in Australia was formed in ICB is the largest bookkeeping institute in the world and aims to promote and maintain the standards of bookkeeping as a profession. ICB is proud to support and endorse handbooks such as this to assist bookkeepers and businesses alike to navigate through the complexities of upgrading to the new version. Enjoy Matthew Addison Executive Director ICB Software Publications Pty Ltd,

3 Unit 2 Payroll Legislation and Requirements Over the last ten years, Australian workers and Australian businesses have started to change the way they work. As a result, the Australian Government has moved towards one, simpler national workplace relations system legislated by the Fair Work Act 2009 which incorporates elements such as a fair and comprehensive safety net of minimum employment conditions referred to as the National Employment Standards. From January 2010 further changes under the Fair Work Act have been implemented. Software Publications Pty Ltd, 2013 Unit 2 23

4 Rates and Figures All data sourced from the ATO website: retrieved 30 April Examples of some rates and figures and associated Tax Determination Rulings for the tax years. Resident Tax Rates Taxable income Tax on this income 0 - $18,200 Nil $18,201 - $37,000 19c for each $1 over $18,200 $37,001 - $80,000 $3,572 plus 32.5c for each $1 over $37,000 $80,001 - $180,000 $17,547 plus 37c for each $1 over $80,000 $180,001 and over $54,547 plus 45c for each $1 over $180,000 The above rates do not include the Medicare levy of 1.5%. Reasonable Overtime Meal Allowance For the income year the reasonable amount for overtime meal allowance expenses is $ Child Support Protected Earnings Amount Year Per week Per fortnight Per month 2013 $ $ $ Motor Vehicle ATO Rates per KM 2012/2013 year Ordinary car engine capacity Rotary engine car engine capacity Cents per kilometre 1600cc (1.6 litre) or less 800cc (0.8 litre) or less cc 2600cc (1.601 litre 2.6 litre) 801cc 1300cc (0.801 litre 1.3 litre) cc (2.601 litre) and over 1301cc (1.301 litre) and over 75 For travel over 5000 km you are required to withhold PAYG. 24 Unit 2 Software Publications Pty Ltd, 2013

5 Employee Obligations Set out below is information downloaded from the Queensland Government website regarding rights and obligations as an employee. Employees need to remember that they too have obligations to the employer. Discrimination and Go to for more information on discrimination and harassment. 42 Unit 2 Software Publications Pty Ltd, 2013

6 (iv) Click on the to the left of Holiday Leave Accrual O. The window on the following page is displayed: This window displays the formula for holiday leave for the office staff: 152 hours per year calculated as a percentage. Note A percentage cannot be applied to salaried employees, e.g. the manager. Leave calculated as a percentage is an advantage when paying permanent part-time employees on flexible working hours. The leave is calculated automatically. This percentage is calculated in the following manner: No. of hours of holiday leave per year: 152 No. of working hours in a year (38 x 52): divided by 1976 as a percentage: % In this example the percentage is calculated on gross hours, i.e. base hourly + overtime. This would not be correct because leave is calculated on the base hours worked. (v) Therefore select the Exempt button. Software Publications Pty Ltd, 2013 Unit 3 65

7 The following window is displayed: This window allows the employer to exclude categories before calculating the holiday leave accrual. Vehicle allowance, meal allowance, etc. have been excluded so that the holiday leave accrual is calculated on the employee s usual working week which includes time on annual leave, long service leave and paid personal leave. (vi) (vii) Return to the Entitlement window. Select Personal Leave Accrual O. (viii) Click on Exempt to view Exemptions from the calculation (overtime, allowances, etc.). 66 Unit 3 Software Publications Pty Ltd, 2013

8 Employees are allowed: 10 days of paid personal leave (including sick leave and carer s leave) provision for an additional 2 days of unpaid carer s leave per occasion additional 2 days of paid compassionate leave per occasion. Pay categories could be set up for compassionate leave if needed. Calculation: No. of hours of personal leave per year: No. of working hours in a year (38 hours x 52): divided by 1976 as a percentage: 3.846% 76 (10 days x 7.6 hours per day) (ix) Select Personal Leave Accrual M and check the setting up of this entitlement. (x) Return to the Entitlement window. Software Publications Pty Ltd, 2013 Unit 3 67

9 Deductions Category (i) Select the Deductions tab. The following window will be displayed: This window displays Deductions from the wages. (ii) Click on the Social Club. The following window is displayed. Some employees belong to the social club and contribute $52 per year. The Social Club deduction is set up as $2 per pay period and to stop when the amount deducted in the payroll year is $ The amount will be allocated to the Social Club account. (iii) (iv) Click on OK to return to Deductions. Select the Cancer Appeal and view how this deduction is set up. Employees have decided to make a donation of $2 per pay period and stop when a donation of $52 has been made for the year. 68 Unit 3 Software Publications Pty Ltd, 2013

10 Taxes Category (i) Click on the Taxes tab. (ii) Click on the to the left of PAYG Withholding. When tax is deducted from the pays of employees, the amount is allocated to the PAYG Withholding Payable account. (iii) Click on No Tax Free Threshold and view the tax rates available. (iv) Return to the Command Centre. Software Publications Pty Ltd, 2013 Unit 3 69

11 Creating/Editing/Deleting Employment Classifications The following employment classifications are required (based on the employee details on page 53): Clerical Level 1, Year 1 Clerical Level 2, Year 1 Clerical Level 3 To create/edit/delete the above employment classifications: (i) Select Lists in the Menu bar. (ii) Select Employment Classifications. (iii) Select the appropriate classification by double clicking and edit so that your list looks like this: (iv) (v) Delete the Construction Worker Level 1 CW1(c). Return to the Command Centre. 70 Unit 3 Software Publications Pty Ltd, 2013

12 Employee Card Files Each employee has an employee card file. (i) Select Card File Command Centre. (ii) (iii) (iv) Select Cards List. Click on the Employee tab. Click on the to the left of Lorry Watts. Lorry Watts Displayed on your screen is Lorry s Profile. Each employee card file contains the following information: 1. Profile for entering the personal details of the employee such as name, address, phone, fax and Card Details for entering employee notes and identifiers and custom lists for reporting. 3. Payroll Details consisting of: a. Personal Details b. Wages c. Superannuation d. Entitlements e. Deductions f. Employer Expenses g. Taxes h. Standard Pay (each pay period) i. Pay History j. Time Billing rates Software Publications Pty Ltd, 2013 Unit 3 71