Payroll

Question 1

Define the term “wage”.

Answer 1

An amount paid to employees, calculated on the number of hours worked and can include the payment of overtime for authorised hours worked in excess of the normal working week.

Question 2

Define the term “salary”.

Answer 2

A fixed periodic payment, usually paid fortnightly or monthly, based on an annual sum and which does not entitle employees to additional overtime payments, but may include use of a vehicle or a yearly cash bonus as a part of the salary package.

Question 3

What are wages rates outlined by?

Answer 3

Awards and agreements

Question 4

The awards and agreements, which outline wages rates, set down conditions of employments including:

Answer 4

• Ordinary hours of work
• Minimum rate of pay
• Leave entitlements
• Notice to be given dismissal
• Rest period entitlements
• Occupation superannuation

Question 5

Before commencement of employment an employee must complete a ____________ and have a ______________ .

Answer 5

• Employment Declaration Form

- Tax File number

Question 6

Payroll officers must be aware of change to ________ and _________ and understand payroll terminology that affects the employees pay.

Answer 6

Awards and legislations

Question 7

List five documents kept by employers.

Answer 7

• Staff record cards
• Hours worked by employees
• Wages books
• Employee earning records
• Details of payments

Question 8

What entitlements is included “sick leave”? And is it paid or unpaid?

Answer 8

• As a full timer – depending on individual awards 10 days, paid leave
• As a casual – not entitled, unpaid leave

Question 9

What entitlements is included “annual leave”? And is it paid or unpaid?

Answer 9

Fulltime employees are entitled to a minimum of 4 weeks for each full year completed work with the employer, paid leave

Question 10

What entitlements is included “long service leave”? And is it paid or unpaid?

Answer 10

Employees are entitled to 13 weeks after 10 years on employment, paid leave

Question 11

What entitlements is included “bereavement leave”? And is it paid or unpaid?

Answer 11

Only applies for people dealing with death of family member, family emergencies, or attending funeral, paid leave.

Question 12

What entitlements is included “family leave”? And is it paid or unpaid?

Answer 12

Perternity leave – included maternity leave and parental leave for both genders

Unpaid leave (their jobs will be available to them when the leave finishes)

Paid maternity leave depends on the award

Question 13

Overtime

Answer 13

Employees who work longer than ordinary days are entitled to overtime or lieu which may incur higher rates

Question 14

Allowances?

Answer 14

Allowances compensate for working under certain conditions, (harsh climate, remote locality), special qualifications, high duties, and all expenses incurred to drain the performance of work.

Question 15

Payroll deductions

Answer 15

These include;

• Income Tax
• Employee Superannuation Contribution
• Union fees
• Health Fund Repayment

Question 16

Group certificates.

Answer 16

A group certificate prepared by the employer and forwarded to the employee at the end of the financial year.
It shows how much the employee earned during the financial year and how much tax was paid.

Question 17

To record the amount of hours worked by an employee these things can be used…

Answer 17

Time clocks
Computerised time clocks
Time sheets
Attendance books