FNSTPB402 Establish and maintain payroll systems
Assessment Task 1 Cover Sheet
Student Declaration
To be filled out and submitted with assessment responses
 I declare that this task is all my own work and I have not cheated or plagiarised the work or colluded with
any other student(s).
 I understand that if I am found to have plagiarised, cheated or colluded, action will be taken against me
according to the process explained to me.
 I have correctly referenced all resources and reference texts throughout these assessment tasks.
Student name
Student ID number
Student signature
Date
Assessor declaration
 I hereby certify that this student has been assessed by me and that the assessment has been carried
out according to the required assessment procedures.
Assessor name
Assessor signature
Date
Assessment outcome
S
NS
DNS
Resubmission
Y
N
Feedback
Student result response
 My performance in this assessment task has been discussed and explained to me.
 I would like to appeal this assessment decision.
Student signature
Date
A copy of this page must be supplied to the office and kept in the student’s file with the evidence.
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Rockford International College Pty Ltd T/A Rockford College
Level 3, 633 Princess Highway, Rockdale, NSW 2216
ABN: 47636979667|RTO Code: 45650 | CRICOS Provider Code: 03882C
Phone: +61285935200 | Email: admissions@rockford.edu.au | Web: www.rockford.edu.au
FNSTPB402 Establish and maintain payroll systems
Assessment Task 1: Written Questions
Task summary
This is an open book test, to be completed in the classroom.
A time limit of 2 hours to answer the questions is provided.
You need to answer all of the written questions correctly.
Your answers must be word processed and sent to the assessor as an email attachment.
Required



Access to textbooks/other learning materials
Computer and Microsoft Office
Access to the internet
Timing
Your assessor will advise you of the due date of this assessment.
Submit

Answers to all questions
Assessment criteria
All questions must be answered correctly in order for you to be assessed as having completed the task
satisfactorily.
Re-submission opportunities
You will be provided feedback on their performance by the Assessor. The feedback will indicate if you have
satisfactorily addressed the requirements of each part of this task.
If any parts of the task are not satisfactorily completed, the assessor will explain why, and provide you
written feedback along with guidance on what you must undertake to demonstrate satisfactory performance.
Re-assessment attempt(s) will be arranged at a later time and date.
You have the right to appeal the outcome of assessment decisions if you feel that you have been dealt with
unfairly, or have other appropriate grounds for an appeal.
You are encouraged to consult with the assessor prior to attempting this task if you do not understand any
part of this task or if you have any learning issues or needs that may hinder you when attempting any part of
the assessment.
RC- FNSTPB402- SAT1 -V1.1
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Rockford International College Pty Ltd T/A Rockford College
Level 3, 633 Princess Highway, Rockdale, NSW 2216
ABN: 47636979667|RTO Code: 45650 | CRICOS Provider Code: 03882C
Phone: +61285935200 | Email: admissions@rockford.edu.au | Web: www.rockford.edu.au
FNSTPB402 Establish and maintain payroll systems
Written answer question guidance
The following written questions use a range of “instructional words” such as “identify” or “explain”, which tell
you how you should answer the question. Use the definitions below to assist you to provide the type of
response expected.
Note that the following guidance is the minimum level of response required.
Analyse – when a question asks you to analyse something, you should do so in in detail, and identify
important points and key features. Generally, you are expected to write a response one or two paragraphs
long.
Compare – when a question asks you to compare something, you will need to show how two or more things
are similar, ensuring that you also indicate the relevance of the consequences. Generally, you are expected
to write a response one or two paragraphs long.
Contrast – when a question asks you to contrast something, you will need to show how two or more things
are different, ensuring you indicate the relevance or the consequences. Generally, you are expected to write
a response one or two paragraphs long.
Discuss – when a question asks you to discuss something, you are required to point out important issues or
features, and express some form of critical judgement. Generally, you are expected to write a response one
or two paragraphs long.
Describe – when a question asks you to describe something, you should state the most noticeable qualities
or features. Generally, you are expected to write a response two or three sentences long.
Evaluate – when a question asks you to evaluate something, you should do so putting forward arguments
for and against something. Generally, you are expected to write a response one or two paragraphs long.
Examine – when a question asks you to examine something, this is similar to “analyse”, where you should
provide a detailed response with key points and features and provide critical analysis. Generally, you are
expected to write a response one or two paragraphs long.
Explain – when a question asks you to explain something, you should make clear how or why something
happened or the way it is. Generally, you are expected to write a response two or three sentences long.
Identify – when a question asks you to identify something, this means that you are asked to briefly describe
the required information. Generally, you are expected to write a response two or three sentences long.
List – when a question asks you to list something, this means that you are asked to briefly state information
in a list format.
Outline – when a question asks you to outline something, this means giving only the main points, Generally,
you are expected to write a response a few sentences long.
Summarise – when a question asks you to summarise something, this means (like “outline”) only giving the
main points. Generally, you are expected to write a response a few sentences long.
RC- FNSTPB402- SAT1 -V1.1
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Rockford International College Pty Ltd T/A Rockford College
Level 3, 633 Princess Highway, Rockdale, NSW 2216
ABN: 47636979667|RTO Code: 45650 | CRICOS Provider Code: 03882C
Phone: +61285935200 | Email: admissions@rockford.edu.au | Web: www.rockford.edu.au
FNSTPB402 Establish and maintain payroll systems
RC- FNSTPB402- SAT1 -V1.1
Page | 4
Rockford International College Pty Ltd T/A Rockford College
Level 3, 633 Princess Highway, Rockdale, NSW 2216
ABN: 47636979667|RTO Code: 45650 | CRICOS Provider Code: 03882C
Phone: +61285935200 | Email: admissions@rockford.edu.au | Web: www.rockford.edu.au
FNSTPB402 Establish and maintain payroll systems
Assessment Task 1 Instructions
Provide answers to all of the questions below:
1. List a useful source of information for keeping up to date with Modern Award changes to ensure that
your payroll is correctly maintained.
The Fair Work Commission (FWC) is the Australian mechanical relations council made by the Fair
Work Act 2009 as a major aspect of the Rudd Government's changes to modern relations in
Australia. The main roles of FWC are: a. To screen certain 457 and 482 subclass visa plans. b. To
promote agreeable, profitable and helpful work environment relations. c. To ensure consistence with
Australian working environment laws.
2. Bee Enterprises has an enterprise agreement with staff. Assume that in the role of the new payroll
officer, you are reviewing employee payments and discover that wage rates are now less than the
current award rates, which changed recently. Explain if this is allowed under the Fair Work Act 2009
and give a reason for your answer.
No, it is not allowed under the Fair Work Act because the base pay rate in the registered agreement
can’t be less than the base pay rate in the award, but the award doesn’t apply if bee enterprise has
registered workplace agreement
3. Outline the payroll category in MYOB that can be adjusted based on an employee’s award or
agreement.
Leave entitlements: It is like annual and personal leave, which employees accrue under the terms of
the work agreements are tracked using entitlement categories (but paid out using wage categories).
4. Explain why is important for organisations to have confidentiality/privacy policies and procedures in
place and what a payroll officer needs to be aware of when dealing with personal information?
It is important for organization to have confidentiality policies and procedure in place for the
following reasons:
 Failure to properly secure and protect confidential business information can lead to the loss
of business/clients.
 Confidential information can be misused to commit illegal activity
 The disclosure of sensitive employee and management information can lead to a loss of
employee trust, confidence and loyalty.
A payroll officer needs to be aware of following when dealing with personal information:
 Using encryption technology, firewalls, and site monitoring to protect information.
 Managing the under 18 users as it is not intended for use by minor.
 Regularly updating the policies, processes and technology in order to make the data
security safest as possible
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Rockford International College Pty Ltd T/A Rockford College
Level 3, 633 Princess Highway, Rockdale, NSW 2216
ABN: 47636979667|RTO Code: 45650 | CRICOS Provider Code: 03882C
Phone: +61285935200 | Email: admissions@rockford.edu.au | Web: www.rockford.edu.au
FNSTPB402 Establish and maintain payroll systems
5. Give at least two payroll actions that a payroll officer would need to get authorisation for.
The two examples when a payroll officer need to get authorization for a payroll action are:
 When cheques are issued to employees rather than bank transfers then the payroll
cheques should be approved, signed and distributed by a designated manager.
 When the payroll data are processed and confirming and the payments with actual work are
in line then the payroll should be verified and authorized by the appropriate person.
6. Explain the term “structure of authority’ as used in organisations in relation to payroll functions
within an organisation.
Structure of authority is a system that outlines how certain activities are directed in order to achieve
the goals of an organization which include rules, roles, and responsibilities. It defines the scope of
acceptable behaviour within an organization, its lines of authority and accountability, and to some
extent the organization's relationship with its external environment. More specifically, it shows the
pattern or arrangement of jobs and groups of jobs within an organization and yet it is more than an
organizational chart.
7. Outline two instances in which a payroll service provider does not need to register as a tax agent or
BAS agent, as set out in the Payroll Service Providers Information Sheet issued by the Tax
Practitioners Board according to the Tax Agent Services Act 2009.
The two instances in which a payroll service provider does not need to register as a tax agent or
BAS agent, as set out in the Payroll Service Providers Information Sheet issued by the Tax
Practitioners Board according to the Tax Agent Services Act 2009 are:
 The services that are not provide for a fee or reward.
 It the provided services do not meet the definition of tax agent services such as (processing
of payments, preparing bank reconciliations).
8. Assume that a client of yours is trying to decide whether to continue using their manual payroll
system or to upgrade to a computerised system. To help them make the choice, explain the
differences between manual and computerised payroll system, including at least two features and
two advantages and disadvantages of each type of system.
Differences
Meaning
Manual payroll system
A manual payroll means that the
use of human hands required to
hire a team of professionals who
will do every accounting and
payroll task by hand
It is very cheaper because it only
uses either the oldfashioned
books or use programs like excel.
It is very slower compared to
computerized payroll system
All the calculation is performed
manually
Not possible to save a file and
entries the transaction
Cost
Speed
Calculation
Backup
Computerizes payroll system
A computerized payroll system is
comprised of a set of software
programs.
It is very expensive compared to
manual payroll system.
It is comparatively faster
All the calculation are calculated
by computer system
Possible to save a file and entries
the transaction
RC- FNSTPB402- SAT1 -V1.1
Page | 6
Rockford International College Pty Ltd T/A Rockford College
Level 3, 633 Princess Highway, Rockdale, NSW 2216
ABN: 47636979667|RTO Code: 45650 | CRICOS Provider Code: 03882C
Phone: +61285935200 | Email: admissions@rockford.edu.au | Web: www.rockford.edu.au
FNSTPB402 Establish and maintain payroll systems
speed
It is very slower compared to
computerized payroll system.
It is comparatively faster
manual payroll system.
to
9. Explain why it is important for a payroll officer to understand the Fair Work Act 2009 and the
National Employment Standards.
It is important for a payroll officer to understand the Fair Work Ac 2009 and the National
Employment standards for the following reasons:
 To guarantee all the finance exchanges are prepared proficiently.
 To develop ad hoc financial and operational reporting as needed
 resolve discrepancies in payroll.
 To provide maximum weekly hours and manage for flexible working arrangements.
 To arrange leaves, holidays, notice of termination, redundancy pay and fair work
information statements
10. Under the Fair Work Act, how much annual leave is an employee entitled to.
Under the Fair Work Act, Full-time and part-time employees get 4 weeks of leave annually, based
on their work hours as well as shift workers may get up to 5 weeks of leave per year.
https://www.fairwork.gov.au/leave/annual-leave
11. Explain the superannuation guarantee scheme, including employee eligibility for superannuation
under the Superannuation Guarantee Act.
Superannuation is a compulsory contribution made by placing a minimum percentage of the income
to support the financial needs in retirement. Superannuation guarantee is paid if a worker is paid
$450 or more wages before tax in a month. It must be paid four times a week and electronically
reported in standard form, ensuring that all the super requirements are meet. If it not paid in time,
then the employer has to pay the super charges. Employee eligibility for superannuation:
 Must be 18 and over and earn $450 per month.
 Must work for 30 hours in a week as full time, part time or casual
12. What allowances are there for employees with regard to voluntary contributions for superannuation?
The allowance for employees with regards to voluntary contributions for superannuation are:
 Special duties or allowance like first aid certificate or safety officer.
 Providing expenses that can’t be claimed as a tax deduction like travel from home to work
 Providing work related expenses that may be claimed as tax deduction. (Travel between
work sites).
Reference:
https://www.ato.gov.au/Business/PAYG-withholding/Payments-you-need-to-withholdfrom/Payments-to-employees/Allowances-and-reimbursements/
13. What tax benefits does payment of voluntary superannuation provide?
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Rockford International College Pty Ltd T/A Rockford College
Level 3, 633 Princess Highway, Rockdale, NSW 2216
ABN: 47636979667|RTO Code: 45650 | CRICOS Provider Code: 03882C
Phone: +61285935200 | Email: admissions@rockford.edu.au | Web: www.rockford.edu.au
FNSTPB402 Establish and maintain payroll systems


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Salary sacrifice is an arrangement between you and your employer where a portion of your
pre-tax salary is used to provide benefit of a similar value.
Depending on your income and how much you can afford to contribution may be a good
option
Alternatively, you may work for an employer who reduce your salary for the purposes of
calculating superannuation. Guarantee contribution, when you option to commence a salary
sacrifice arrangement, effectively receiving fewer super entitlement.
14. Explain the circumstances in which an employer must pay a super guarantee charge.
If an employer doesn’t meet the circumstances for super guarantee, then they are charged with
penalty on them. The circumstances in which employer must pay a super guarantee charge are:
 SG shortfall amounts (including any choice liability calculated on your employee’s salary or
wages Interest on those amounts (currently 10%)
 An administration fee of $20 per employee, per quarter.
15. According to the Corporations Act, how long should business records be retained? What happens if
a business does not retain required records?
Pay Extra Taxes
If you don’t keep records of estimated tax payments or don’t keep receipts for planned deductions,
you won’t be able to claim these items on a business tax return and will have to pay more tax than
is owed. This is just one main consequence of failing to keep accurate records!
Tax Adjustments
After Audit If you get audited and don’t have paperwork to back up claims, the IRS may decide that
you need to pay more taxes than you originally had to pay. There may also be costly penalties for
the failure to file taxes appropriately.
Audit Failures
Failing an external or internal audit can lead to large fines or even the closure of your business.
Criminal Penalties for Improper licensure Without copies of licenses, a person can face jail time for
operating without the proper license.
Inability To Protect Your Business from Theft
Without the right paperwork to justify claims, you may not be able to sue someone for copyright
infringement or patent infringement.
Employee lawsuits
If an employee claims you acted in an illegal manner – i.e., a wrongful termination or a refusal to
pay worker’s compensation – you won’t have much recourse if there is no paperwork to prove that
you complied with the applicable laws. Always keep copies of any interactions your employees have
with your staff that may affect you in a legal manner later on.
RC- FNSTPB402- SAT1 -V1.1
Page | 8
Rockford International College Pty Ltd T/A Rockford College
Level 3, 633 Princess Highway, Rockdale, NSW 2216
ABN: 47636979667|RTO Code: 45650 | CRICOS Provider Code: 03882C
Phone: +61285935200 | Email: admissions@rockford.edu.au | Web: www.rockford.edu.au
FNSTPB402 Establish and maintain payroll systems
Deals Fall Through
Losing or misplacing an important document can cause a major deal to fall through. Something as
small as an old employee contract can hold up a transaction greatly reducing your chance for
success. In order to prevent these negative consequences of failing to keep accurate records, it’s
important to find a records storage system that works for your business. It should be a business
requirement to have some kind of system in place in case you are audited.
16. Explain the purpose of workplace/occupational health and safety legislation. Give an example of a
safe work practice for a payroll officer needs to implement.
The purpose of the Work Health and Safety laws (WHS laws) is to protect health, safety and welfare
of employees, any potentials of work hazard, volunteers and other persons who are contact with a
work place This means that in most states and territories and at the Commonwealth level, WHS
laws impose similar obligations. Examples of a safe work practice for a payroll officer need to
implement are given below:
 Improperly adjusted workstations and chairs
 Frequent lifting
 Poor posture
 Awkward movements, especially if they are repetitive
 Using too much force, especially if it’s done frequently
https://www.worksafe.vic.gov.au/occupational-health-and-safety-act-and-regulations
17. Explain workers’ compensation and give an example of an adjustment that may need to be made to
a payroll system if an employee is entitled to worker’s compensation.
Workers' compensation is a government-mandated system that pays monetary benefits to workers
who become injured or disabled in the course of their employment. Workers' compensation is a type
of insurance that offers employees compensation for injuries or disabilities sustained as a result of
their employment.
Workers’ compensation includes payments to employees to cover their:
 wages while they're not fit for work
 medical expenses and rehabilitation.
18. Explain why businesses have to pay payroll tax and identify thresholds and rates for businesses for
the state or territory in which you are living.
Business has to pay payroll tax because it is calculated on the amount of wages paid each month
and payable in the state or territory of Australia where the services were performed.
Tax year
Threshold
Tax rate
01/07/2021 to 30/06/2022
$1,200,000
4.85%
01/07/2020 to 30/06/2021
$1,200,000
4.85%
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Rockford International College Pty Ltd T/A Rockford College
Level 3, 633 Princess Highway, Rockdale, NSW 2216
ABN: 47636979667|RTO Code: 45650 | CRICOS Provider Code: 03882C
Phone: +61285935200 | Email: admissions@rockford.edu.au | Web: www.rockford.edu.au
FNSTPB402 Establish and maintain payroll systems
01/07/2019 to 30/06/2020
$900,000
5.45%
The monthly threshold amounts are:
Days in the month
28
30
31
Threshold
$92,055
$98,630
$101,918
19. How long does the ATO require small businesses to keep records for? Give two examples of
records that must be kept.
The ATO require 5 years to keep records for small business. The two examples of records you
should keep from the date you lodge your tax return are:
 payments you have received
 expenses related to payments you receive
 when you have acquired or disposed of an asset – such as shares or a rental property
20. Explain the importance of keeping payroll information confidential.
The importance of keeping payroll information confidential are:
 To keep the employee information safe from identity theft.
 To prevent jealousy among employees.
 To prevent the business information.
21. Outline three areas that an organisation must address in regard to procedures around collection of
personal information of employees to ensure it complies with the Australian Privacy principles.
The three areas that’s an organisation must address in regard to procedures around collection of
personal information of employees are:
 Notifiable data breaches scheme
 Credit reporting
 Tax file numbers
22. Outline the ATO requirements in relation to repayments of a higher education loan program (HELP).



Repayments of HELP must be done when your income exceeds the minimum repayment
threshold. This is even if you are still studying or undertaking an apprenticeship.
Your compulsory repayment rate increases as your income increases. The more you earn,
the higher your repayment. Your compulsory repayment is based on your income alone –
not the income of your parents or spouse.
Compulsory repayments are made through your tax return. You can also make voluntary
repayments at any time to reduce your loan balance.
23. Explain the purpose of the Medicare levy and identify the rate at which it is levied.
The main purpose of Medicare levy is to provide free care in public hospitals, and lower costs to buy
prescription medicines. The Medicare levy helps fund some of the costs of Australia's public health
system known as Medicare.
RC- FNSTPB402- SAT1 -V1.1
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Rockford International College Pty Ltd T/A Rockford College
Level 3, 633 Princess Highway, Rockdale, NSW 2216
ABN: 47636979667|RTO Code: 45650 | CRICOS Provider Code: 03882C
Phone: +61285935200 | Email: admissions@rockford.edu.au | Web: www.rockford.edu.au
FNSTPB402 Establish and maintain payroll systems
The Medicare levy is 2% of your taxable income, in addition to the tax you pay on your taxable
income.
24. Explain the purpose of modern awards within the national workplace relations system and give an
example of a modern award.
The purpose of modern awards within the national workplace relations system is to provide a fair
and relevant minimum safety net of terms and conditions, taking into account:
 Relative living standards and the needs of the low paid
 The need to encourage collective bargaining
 The need to promote social inclusion through increased workforce participation
 The need to promote flexible modern work practices and the efficient and productive
performance of work
 The need to provide additional remuneration for:
 Employees working overtime
 Employees working unsocial, irregular or unpredictable hours
 Employees working on weekends or public holidays
 Employees working shifts
 The principle of equal remuneration for work of equal or comparable value
 The likely impact of any exercise of modern award powers on business, including on
productivity, employment costs and the regulatory burden
 The need to ensure a simple, easy to understand, stable and sustainable modern award
system for Australia that avoids unnecessary overlap of modern awards, and
 The likely impact of any exercise of modern award powers on employment growth, inflation
and the sustainability, performance and competitiveness of the national economy.
An Example of modern award is Banking, Finance and Insurance Award 2020
25. Explain the purpose of enterprise bargaining and give an example of an enterprise agreement.
Enterprise bargaining is the process of negotiation generally between the employer, employees and
their bargaining representatives with the goal of making an enterprise agreement.
The purpose of enterprise bargaining is as follow:
 To establishes a set of clear rules and obligations about how this process is to occur
Improve workplace productivity through bargaining
 To increase efficiency and effectiveness of the business to the advantage of both the
employer and the employee.
Example of an enterprise agreement:
Single Enterprise Agreement
A single enterprise agreement can be created by two or more employers who share a single
interest. To create a single enterprise agreement, all the employers wishing to join the
agreement need to receive a determination from the Fair Work Commission that they are single
interest employers. For example, this could be employers in related corporations or who are
involved in a joint venture. These employers can come together to negotiate an agreement with
their collective employees.
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Rockford International College Pty Ltd T/A Rockford College
Level 3, 633 Princess Highway, Rockdale, NSW 2216
ABN: 47636979667|RTO Code: 45650 | CRICOS Provider Code: 03882C
Phone: +61285935200 | Email: admissions@rockford.edu.au | Web: www.rockford.edu.au
FNSTPB402 Establish and maintain payroll systems
26. Explain whether an employment contract can provide for less than the legal minimum under the
NES.
An employment contract can’t provide for less than the legal minimum under the NES. They can’t
exclude the NES. An employment contract must provide all 11 minimum entitlements of NES. These
are:
 Maximum weekly hours
 Requests for flexible working arrangements
 Offers and requests to convert from casual to permanent employment
 Parental leave and related entitlements
 Annual leave
 Personal/carer's leave, compassionate leave and unpaid family and domestic violence
leave
 Community service leave
 Long service leave
 Public holidays
 Notice of termination and redundancy pay
 Fair Work Information Statement and Casual Employment Information Statement
27. Under the Fair Work Act 2009, how much sick leave are employees entitled to.
Under the Fair Work Act 2009, the yearly entitlement is based on an employee’s ordinary hours of
work and is 10 days for full-time employees, and pro-rata for part-time employees. This can be
calculated as 1/26 of an employee’s ordinary hours of work in a year.
28. Outline the four main items that must be recorded against an employee’s payroll record when they
commence employment with a company to ensure they receive their correct salary and entitlements
and their details are reported correctly to the ATO.




General records
Pay records
Hours of work records
Leave records
29. Explain the purpose of the Australian Bureau of Statistics (ABS) Act and briefly explain how
statistics produced by the ABS can be used by a business.
The ABS purpose is to inform Australia's important decisions by partnering and innovating to deliver
relevant, trusted and objective data, statistics and insights. They impose the lowest load possible
while meeting its obligations to provide Government and the community with a high quality official
statistical service. Business providers are managed within an overall strategy referred to as Total
Approach Management (TAM). This strategy aims to minimise the impact on providers while still
achieving an acceptable level of compliance with ABS requests for information to ensure reliable
statistical estimates are obtained.
The Australian bureau of statistics (abs) has a wealth of information. This information can be used
by businesses to improve their decisions and planning. Many businesses can use abs information to
RC- FNSTPB402- SAT1 -V1.1
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Rockford International College Pty Ltd T/A Rockford College
Level 3, 633 Princess Highway, Rockdale, NSW 2216
ABN: 47636979667|RTO Code: 45650 | CRICOS Provider Code: 03882C
Phone: +61285935200 | Email: admissions@rockford.edu.au | Web: www.rockford.edu.au
FNSTPB402 Establish and maintain payroll systems

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
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Decide when to start up or expand their business
Locate potential customers
Develop targeted marketing campaigns.
Assess site location
Improve your market strategy
30. List three entities who are entitled to an ABN



Carrying on or starting an enterprise in Australia
Making supplies connected with Australia's indirect tax zone
A Corporations Act company.
31. Explain an employer’s obligation regarding PAYG withholding tax and outline when PAYG
withholding amounts must be paid for small withholders (individual or business that withholds
amounts under 25,000), for a medium withholder (individual or business that withholds amounts of
$25,0001 to 1 million) and large withholders (individual or business that withholds amounts totalling
more than $1 million).
Small withholders:
 withholds $25,000 or less a year
 pays withholding amounts to us each quarter
 reports withholding on activity statements received each quarter
 can arrange to receive monthly activity statements by contacting our extended-hours
business service.
Medium withholders:
 withholds $25,001 to $1 million a year
 pays withholding amounts to us each month
 reports withholding on activity statements received each month.
Large withholders:
 an individual or business that withheld amounts totalling more than $1 million in a previous
financial year, or is part of a company group that has withheld more than $1 million in a previous
financial year
 amounts withheld are paid, and sent electronically to us, twice a week
 date for payment depends upon the day withholding took place:
32. Who is responsible for paying fringe benefits tax, and what is the FBT Rate for the financial year
ending March 2015 and the financial years ending 2016 and 2017?
Employer is responsible for paying fringe benefits tax.
The FBT Rate for the financial year ending March 2015 is 47%
For financial years ending 2016 and 2017 is 49%
33. What is fringe benefit in tax terms and two examples of fringe benefits and two examples of items
used for work that would not be classified as fringe benefits.
RC- FNSTPB402- SAT1 -V1.1
Page | 13
Rockford International College Pty Ltd T/A Rockford College
Level 3, 633 Princess Highway, Rockdale, NSW 2216
ABN: 47636979667|RTO Code: 45650 | CRICOS Provider Code: 03882C
Phone: +61285935200 | Email: admissions@rockford.edu.au | Web: www.rockford.edu.au
FNSTPB402 Establish and maintain payroll systems
In terms of tax fringe benefit is the services or additional benefit provided by the employer to
employee or other associates.
The two examples of fringe benefits are:
 Allowing employees to use a work car for private purpose.
 Providing entertainment to employee by offering free concert tickets.
Examples of work that would not be classified as fringe benefits are:
 Benefits provided to volunteers and contractors.
 Employer contributions to comply super funds.
34. Give three examples of information that is reported on an Instalment Activity Statement (IAS)?



Amounts of PAYG instalments,
Amounts of PAYG withholding
Amounts of ABN withholding.
35. In your own words, explain each principle of the TPB Code of Professional Conduct (Code) for all
registered tax agents, BAS agents and tax (financial) advisers.
Honesty and integrity



You must act honestly and with integrity.
You must comply with the taxation laws in the conduct of your personal affairs.
If you:
 receive money or other property from or on behalf of a client, and
 hold the money or other property on trust
you must account to your client for the money or other property.
Independence


You must act lawfully in the best interests of your client.
You must have in place adequate arrangements for the management of conflicts of
interest that may arise in relation to the activities that you undertake in the capacity of a
registered BAS agent.
Confidentiality

Unless you have a legal duty to do so, you must not disclose any information relating to
a client’s affairs to a third party without your client’s permission.
Competence


You must ensure that BAS services that you provide, or that is provided on your behalf,
is provided competently.
You must maintain knowledge and skills relevant to the BAS services that you provide.
RC- FNSTPB402- SAT1 -V1.1
Page | 14
Rockford International College Pty Ltd T/A Rockford College
Level 3, 633 Princess Highway, Rockdale, NSW 2216
ABN: 47636979667|RTO Code: 45650 | CRICOS Provider Code: 03882C
Phone: +61285935200 | Email: admissions@rockford.edu.au | Web: www.rockford.edu.au
FNSTPB402 Establish and maintain payroll systems


You must take reasonable care in ascertaining a client’s state of affairs, to the extent
that ascertaining the state of those affairs is relevant to a statement you are making or a
thing you are doing on behalf of a client.
You must take reasonable care to ensure that taxation laws are applied correctly to the
circumstances in relation to which you are providing advice to a client.
Other responsibilities




You must not knowingly obstruct the proper administration of the taxation laws.
You must advise your client of the client’s rights and obligations under the taxation laws
that are materially related to the BAS services you provide.
You must maintain the professional indemnity insurance that the Board requires you to
maintain.
You must respond to requests and directions from the Board in a timely, responsible
and reasonable manner.
36. What is an Early Termination Payment and when must it be made to be considered as an Early
Termination Payment?
An employment termination payment (ETP) is a lump sum payment received in consequence of the
termination of employment. It can include:
 a payment for unused rostered days off or unused sick leave
 a payment in lieu of notices
 a gratuity or ‘golden handshake’
 an amount of a genuine redundancy or early retirement scheme payment in excess of the
tax-free component
 a payment because of termination due to an employee’s invalidity (other than compensation
for personal injury)
 certain payments after the death of an employee
It is considered to be as an Early Termination Payment if it is received no later than 12 months after
the termination, unless it is a genuine redundancy or early retirement scheme payment
37. How are Early Termination Payment made outside the permitted period taxed?
When Early Termination Payment period is exceeded then:
a) it is included in your assessable income and taxed at your marginal tax rates
b) A payment that is made more than 12 months after termination can still be an ETP in some
circumstances. If you receive a termination payment more than 12 months after termination
38. Explain the concept of salary packaging and give two examples of common items that can be salary
packaged.
Salary Packaging is also known as Salary Sacrifice. It is the inclusion of employee benefits (also
called fringe benefits) in an employee remuneration package in exchange for giving up part of
monetary salary.
If you work for an organisation that offers salary packaging, you can use some of your salary to pay
for everyday expenses before income tax is calculated, meaning you pay less tax and have more
RC- FNSTPB402- SAT1 -V1.1
Page | 15
Rockford International College Pty Ltd T/A Rockford College
Level 3, 633 Princess Highway, Rockdale, NSW 2216
ABN: 47636979667|RTO Code: 45650 | CRICOS Provider Code: 03882C
Phone: +61285935200 | Email: admissions@rockford.edu.au | Web: www.rockford.edu.au
FNSTPB402 Establish and maintain payroll systems
money to spend. That’s because your salary packaging money is deducted first and then your tax is
calculated on the remaining amount.
Common items that can be salary packaged:


Additional superannuation
Aged care & disability costs for a loved one
RC- FNSTPB402- SAT1 -V1.1
Page | 16
Rockford International College Pty Ltd T/A Rockford College
Level 3, 633 Princess Highway, Rockdale, NSW 2216
ABN: 47636979667|RTO Code: 45650 | CRICOS Provider Code: 03882C
Phone: +61285935200 | Email: admissions@rockford.edu.au | Web: www.rockford.edu.au
FNSTPB402 Establish and maintain payroll systems
Assessment Task 1 Checklist
Student’s name:
Did the student provide a sufficient and
clear answer that addresses the
suggested answer for:
Completed
successfully
Yes
Comments
No
Question 1
Question 2
Question 3
Question 4
Question 5
Question 6
Question 7
Question 8
Question 9
Question 10
Question 11
Question 12
Question 13
Question 14
Question 15
Question 16
Question 17
Question 18
Question 19
Question 20
Question 21
Question 22
Question 23
RC- FNSTPB402- SAT1 -V1.1
Page | 17
Rockford International College Pty Ltd T/A Rockford College
Level 3, 633 Princess Highway, Rockdale, NSW 2216
ABN: 47636979667|RTO Code: 45650 | CRICOS Provider Code: 03882C
Phone: +61285935200 | Email: admissions@rockford.edu.au | Web: www.rockford.edu.au
FNSTPB402 Establish and maintain payroll systems
Student’s name:
Did the student provide a sufficient and
clear answer that addresses the
suggested answer for:
Completed
successfully
Yes
Comments
No
Question 24
Question 25
Question 26
Question 27
Question 28
Question 29
Question 30
Question 31
Question 32
Question 33
Question 34
Question 35
Question 36
Question 37
Question 38
Question 39
Satisfactory 
Task Outcome:
Not Satisfactory 
Assessor signature
Assessor name
Date
RC- FNSTPB402- SAT1 -V1.1
Page | 18
Rockford International College Pty Ltd T/A Rockford College
Level 3, 633 Princess Highway, Rockdale, NSW 2216
ABN: 47636979667|RTO Code: 45650 | CRICOS Provider Code: 03882C
Phone: +61285935200 | Email: admissions@rockford.edu.au | Web: www.rockford.edu.au