With more people staying at home because of the pandemic, the business has seen a significant increase
Question:
With more people staying at home because of the pandemic, the business has seen a significant increase in the demand for its products. This led the management to employ two additional staff and will also require the payroll team to ensure employee benefits are correctly set up for the new employees. It was determined that the new staff earn gross salaries of $3,650 per week with related deductions and on-costs: PAYG withholding tax $930,employer superannuation payment of 9.5%, payroll tax of 4.25%, WorkCover of 2%, employee contribution to superannuation of $180 and employee contributions to insurance fees of $28.
Question 5:
The new employees do not understand why when they received their first weekly pay it was less than $3,650 in wages. Record the necessary general journal entries in relation to payroll and payroll deductions for one week for the new employees.
List the take-home pay that each new employee will receive and explain to them why it was less than $3,650.
Kindly follow AASB rules
Operations Management Creating Value Along the Supply Chain
ISBN: 978-0470525906
7th Edition
Authors: Roberta S. Russell, Bernard W. Taylor