Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hawthorn International Pty Ltd has not complied with the Superannuation Guarantee Scheme for their three employees. Their superannuation guarantee percentage is 9.5%. Employees have been

Hawthorn International Pty Ltd has not complied with the Superannuation Guarantee Scheme for their three employees. Their superannuation guarantee percentage is 9.5%.

Employees have been provided with annual superannuation support equivalent to only 6% of their earnings base.

The employees' earnings base for quarter 2, 2018/19 was the ordinary times earnings of $56,000. The employees' total earnings including overtime for the quarter was $84,000.

Hawthorn Pty Ltd lodged a SGC Quarterly Statement on 20 February 2019.

(i) Calculate the amount of superannuation guarantee Hawthorn would have already contributed to a complying fund.

$56,000 x 6% = $3,360

(ii) Calculate the employees' shortfall percentage and the shortfall dollar amount.

(iii) Calculate the nominal interest component. Assume 365 days in the year.

(iv) Calculate the administration component.

$20 x 3 = $60

I am having a bit of trouble calculating ii & iii can you please explain the workings for these two calculations?

Step by Step Solution

3.35 Rating (164 Votes )

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting A Managerial Emphasis

Authors: Charles T. Horngren, Srikant M.Dater, George Foster, Madhav

13th Edition

8120335643, 136126634, 978-0136126638

More Books

Students also viewed these Accounting questions

Question

Describe the ES development environment.

Answered: 1 week ago

Question

Define the term learning.

Answered: 1 week ago

Question

Identify the effects and dangers of using depressants.

Answered: 1 week ago

Question

Identify the effect that punishment has on behavior.

Answered: 1 week ago