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Questions and Answers > FNSTPB401 Complete Business Activity and Instalment Activity Statements Assignment (using Xero)

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The following questions are based on the material in Chapter 1: The Business Tax System Q1.1: What are the three main obligations for an Employer when a new Employee is hired? 1. While hiring a new ... employee, the employer must ask the new employee to complete a Tax file number declaration form. 2. When the employees provided their TFN, the employer must follow the ATO's guide on how much tax to deduct from their pay. 3. If the new employees had not provided their TFN then the employer must deduct PAYG at the highest rate. Q1.2: List four requirements of an employer if they pay a fringe benefit of $3,250 to an employee 1. The employer is subjected to pay Fringe Benefit Tax 2. The employer must keep records showing the taxable value of the fringe benefits provided to the employee 3. The employer must report the grossed-up taxable value of the benefits in that particular employee’s group certificate or payment summary. 4. If there were any exempted fringe benefit added to the total fringe benefit, the employer may demand for its removal from the total taxable value. Q1.3: Silver Fields Industries received an invoice from a supplier for $1,650. The supplier does not have an ABN. All other aspects of the invoice are valid. a) Under the PAYG Withholding requirements, what must Silver Fields do in this instance? b) Would your answer be different if the invoice was for $75.00 or less? Explain. a) Since the invoice from the supplier does not quote an ABN, Silver Fields must withhold an amount from the payment and send it to the ATO. b) Yes. Siler Fields need not withhold any amount for a payment of $75 or less, even when the invoice does not quote an ABN. Q1.4: Access the website for the Tax Practitioners Board website (tpb.gov.au). List the five (5) requirements for registering as an individual BAS Agent, as stated on the website: FNSBKG404 Carry out Business Activity and Instalment Activity Statement Tasks Mod3.3 - Assignment 170314 Page 6 of 43 Unit Covered: FNSBKG404 1. The individual must be at least 18 years of age to be eligible to apply 2. The individual must be a fit and proper person. 3. The individual must satisfy the qualification and experience requirements. 4. The individual must maintain, or will be able to maintain, professional indemnity insurance cover that meets our requirements. 5. The individual complete an online application and provide supporting documents. Q1.5, Part A: Why are BAS Agents required to have Professional Indemnity Insurance (PII)? Q1.5, Part B: Explain the level of PII required. [Show More]

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