Eric has a business carting freight for the vegetable growing industry. He has

one employee, Fred, who commenced work on 1 December. His employment

income for December is $2,000. It comprises:

Gross wages $1,200

Overtime $250

Annual leave $400

Living away from home allowance $150 - Overnight due to business

meeting and expected to be fully expended on accommodation and meals.

Required:

Read through "Section 3.2: Basic compliance considerations" in the

workbook, and answer the following questions:

a. Conduct online research from the Australian Taxation Office website

for "OTE Checklist", and determine which

earnings of Fred are Ordinary Time Earnings for the purposes of

Superannuation Guarantee (SG) calculations. (2 marks)

b. Calculate the SG for Fred for December. Show your working in the

answer. (2 marks)

c. What would Eric have to do to ensure the SG for Fred is tax-deductible to

his business? (1 mark)