Question
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
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.
a. which earnings of Fred are Ordinary Time Earnings for the purposes of Superannuation Guarantee (SG) calculations.
b. Calculate the SG for Fred for December. Show your working in the answer.
c. What would Eric have to do to ensure the SG for Fred is tax-deductible to his business?
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Forensic And Investigative Accounting
Authors: G. Stevenson Smith D. Larry Crumbley, Edmund D. Fenton
10th Edition
0808056301, 9780808056300
