Reference

WP 3.1 – Payroll Tax and Superannuation Analytic

Approach
For the Payroll Tax and Superannuation balances, perform an analytical review to gain comfort over the balances. This will be done b

Payroll Tax
1.       Obtain the Payroll Tax account balance from the Trial Balance document
2.       Determine the payroll tax percentage to be applied to staff costs (assuming all staff are based in New South Wales) - this will re
3.       Recalculate the expected payroll tax amount
4. Compare the amount calculated to the Trial Balance and determine whether the variance is greater than the tolerable error (to
5. Conclude on your analysis by stating whether the balance is within the tolerable error.

Superannuation
1.       Obtain the Superannuation account balance from the Trial Balance document
2.       Assume the Superannuation guarantee amount provided by Global Motor Manufacturers Australia Pty Ltd to all employees is 1
3.       Recalculate the expected superannuation amount based on the above assumption
4. Compare the amount calculated to the Trial Balance and determine whether the variance is greater than the tolerable error (to
5. Conclude on your analysis by stating whether the balance is within the tolerable error.

Testing

Balances Tested
Trial Balance
Name Account No. Financial State Classification Sub-Classificati Natural Balance 2019
Superannuation 5202 Income StatemeExpense Employee benefiDebit $ 900,000
Payroll taxes 5204 Income StatemeExpense Employee benefiDebit $ 495,000

Relevant Balances for Calculations

Name Account No. Financial State Classification Sub-Classificati Natural Balance 2019
Payroll 5201 Income StatemeExpense Employee benefiDebit $ 9,000,000

Payroll Tax
1.       Obtain the Payroll Tax account balance from the Trial Balance document

Name Account No. Financial State Classification Sub-Classificati Natural Balance 2019
Payroll taxes 5204 Income StatemeExpense Employee benefiDebit $ 495,000

2.       Determine the payroll tax percentage to be applied to staff costs (assuming all staff are based in the Australian Capital Territory

Payroll tax amount per NSW Revenue website 5.45%

https://www.revenue.nsw.gov.au/taxes/payroll

3.       Recalculate the expected payroll tax amount based on your research

Total payroll costs (salaries and superannuation) per the Trial Ba $ 9,900,000
Expected Payroll Tax per based on assumption % $ 539,550
Actual Payroll Tax per Trial Balance $ 495,000

4. Compare the amount calculated to the Trial Balance and determine whether the variance is greater than the tolerable error (tol
Variance based on comparison of assumption to actual $ 44,550
% Variance 8%

5. Conclude on your analysis by stating whether the balance is within the tolerable error.

Balance is within the tolerable error allowed.

the balances. This will be done by:

n New South Wales) - this will require some online research

ater than the tolerable error (tolerable error is set by the audit manager at 10%)

ralia Pty Ltd to all employees is 10% of their salary amount

ater than the tolerable error (tolerable error is set by the audit manager at 10%)

Balance 2018
$ 807,500
$ 465,375

Balance 2018
$ 8,500,000

Balance 2018
$ 465,375

the Australian Capital Territory) - this will require some online research

ater than the tolerable error (tolerable error is set by the audit manager at 5%)