Case Study -

Anthony's business, Go Golfing has grown exponentially, which is great. However, it has caused some complexities for his business as he now employed an administration officer to organise bookings and changed his business structure to a private company.

Compliance issue 1: Meeting superannuation requirements

After two weeks of commencing their role as an administration officer, they have come to you enquiring about their superannuation. This has not been done by the business and you are requested to fix up this problem. Anthony is very concerned about this omission and wants to consult with you regarding this matter.

Anthony has drafted what he thinks are the correct procedures and wants the policy checked for accuracy. These are the current procedures in place to meet this compliance requirement.

Go Golfing current procedures to pay superannuation contributions:

1.Provide a choice of super funds to eligible employees.

2.Pay at least the minimum 9.50% contribution amount of the earnings base

3.Pay super contributions for eligible employees

4.Keep records of super contribution payments

Compliance issue 2: Meeting records management requires for companies

The compliance issue in relation to superannuation has concerned Anthony. He is no worried that since changing to a company structure he is no longer meeting compliance in relation to records management.

This is the current procedure in place to meet this compliance requirement.

1.Keep records for five years

Step one: Meet with the Go Golfing

Anthony wants to ask some questions about superannuation so that he follows the correct compliance requirements for Go Golfing. He asks you to help him source the correct information on different aspects of superannuation law that will affect his operational decisions.

As an accountant, it is expected that you will be able to interpret the compliance requirements of relevant sections of the Australian Tax Office. (See questions below for reference).

1.Where can I find general compliance information on superannuation for employers?

2.How does a business determine its employer-nominated fund (default fund)?

3.Where can I access a choice of super fund form?

4.Can you show me how to calculate the correct superannuation payment amount for a nominated income using the ATO calculator?

5.What are the correct payment cut-off dates for superannuation payments to meet compliance?

6.What happens if the employee does not nominate a fund?

Step three: Develop a compliance procedure for Go Golfing in relation to superannuation

After reviewing Go Golfing and meeting with Anthony, you detect several omissions from the procedures above and are required to seek guidance to evaluate and inform Anthony's decision-making process. Referring to the following ATO link, develop these procedures for Anthony to address the full compliance requirements for Go Golfing. What are the steps to develop a minimum of ten (10) steps that must be followed?

https://www.ato.gov.au/Business/Super-for-employers/

At the end of your procedures document, you must indicate when the procedure should be reviewed/updated to ensure the compliance requirements align with statutory deadlines.

Step four: Develop a records management procedure for Go Golfing

This aspect of the case study builds upon Q4e and Q4f from assessment 2.

Six months go by and Anthony has decided to change his business structure to a privately listed company structure. Anthony remembers the superannuation procedure you developed for GoGolfing and has asked you to make a procedure in relation to records management.

Your procedures must be presented in a separate document in a suitable format using appropriate software features. You should use clear language, including accurate legal terminology and ensure the procedures are understandable for all audiences that will use them (e.g. Anthony, Go golfing employees, external consultants etc.) You need to develop a minimum of six (6) steps that must be followed.

https://www.ato.gov.au/business/managing-your-small-business-records/records-required-by-law/

https://www.business.gov.au/new-to-business-essentials/series-one/keep-the-right-records

At the end of your procedures document, you must indicate when the procedure should be reviewed/updated to ensure the compliance requirements align with statutory deadlines.

Step five: Reflection

After completing the above procedures for Anthony, you have started thinking about your own compliance requirements in relation to the role of an accountant.

Complete summary reflecting on what compliance requirements you need to meet (ie. confidentially, ethics) and what authoritative source you could refer to in order to determine that your interpretation is in fact correct.