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Prepare Business Activity Statement (BAS) Including payroll, GST and FBT | Taxation Assignment Help
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Internal Code: 1IAIF
*The fees charged for the compulsory Year 8 camp include a food component, camp activities component and bus travel to and from the camp. Of the total $39,000 the food component was $13,000.
**The expenses for the Year 8 camp include $3,250 for the bus, $13,500 for food and $23,750 for camp accommodation and activities for the students and accompanying teachers.
***Staff social club expenses include the cost of drinks and finger food on the last Friday of the month. These would not normally be deductible, due to the operation of s 32-5 ITAA97.
Salaries & Wages:
Private College pays all employees weekly. All employees are entitled to the tax-free threshold. The permanent staff include teaching staff, clerical staff and grounds maintenance staff, who all work the same number of hours each week. Their weekly pay is based on an annual salary. Annual salaries are:
Other information relevant to Business Activity Statement (BAS):
The school has elected to prepare the BAS on a monthly basis.
A fuel tax credit of $150 has been claimed for the fuel used by mowers and other equipment in
maintaining the school grounds. An FBT (Fringe Benefits Tax) instalment of $1,050 is due for the
June quarter, but the school has decided not to provided fringe benefits anymore.
There are no liabilities for WET or LCT and no PAYG instalments due.
REQUIRED:
Prepare the work papers necessary to evidence/support the Business Activity Statement you need to complete for the month. You should complete them as follows;
This is a Practical Case Study Requiring you to Prepare a Business Activity Statement (BAS) and Supporting Work Papers.
Private College is a relatively new private school that is registered for GST. It has been operating since the beginning of the 2017 school year and at this stage just caters for students in Years 7 and 8 (the first two years of secondary school). During the month of June2018, they reported the following transactions:
*The fees charged for the compulsory Year 8 camp include a food component, camp activities component and bus travel to and from the camp. Of the total $39,000 the food component was $13,000.
**The expenses for the Year 8 camp include $3,250 for the bus, $13,500 for food and $23,750 for camp accommodation and activities for the students and accompanying teachers.
***Staff social club expenses include the cost of drinks and finger food on the last Friday of the month. These would not normally be deductible, due to the operation of s 32-5 ITAA97.
Salaries & Wages:
Private College pays all employees weekly. All employees are entitled to the tax-free threshold. The permanent staff include teaching staff, clerical staff and grounds maintenance staff, who all work the same number of hours each week. Their weekly pay is based on an annual salary. Annual salaries are:
- Teaching staff total - $604,800 (9 teachers at same level, qualifications)
- Clerical staff total - $87,152 (2 clerical staff at same level, qualifications)
- Grounds maintenance staff total - $83,200 (2 staff at same level, qualifications)
Other information relevant to Business Activity Statement (BAS):
The school has elected to prepare the BAS on a monthly basis.
A fuel tax credit of $150 has been claimed for the fuel used by mowers and other equipment in
maintaining the school grounds. An FBT (Fringe Benefits Tax) instalment of $1,050 is due for the
June quarter, but the school has decided not to provided fringe benefits anymore.
There are no liabilities for WET or LCT and no PAYG instalments due.
REQUIRED:
Prepare the work papers necessary to evidence/support the Business Activity Statement you need to complete for the month. You should complete them as follows;
- Prepare a schedule of wages paid for the month by weekly pay period, included PAYG withholding deductions and net wages for each category of employees. (18 Marks)
- Calculate the Superannuation payable for each category of employees for the month.
- Discuss what a taxable supply is. Classify each receipt item listed, by the type of GST supply, explaining briefly why you have classified it that way. Calculate the amount of GST (if any) included in the price of each.
- Discuss what conditions need to be met before Private College can claim input tax credits in relation to the expenses listed. Explain whether each of the acquisitions is a creditable acquisition. Calculate the amount of GST (if any) included in the cost.
- Prepare a Business Activity Statement for the month ended 30 June2018, ensuring you complete all relevant labels.