Layla Johnson, aged 31, has worked as a manager at the Queensland Art Gallery for the past nine years. She has decided that the time is right to leave her paid employment and open up her own art gallery.

The Art Gallery will be based in West End and specialise in modern contemporary art. She aims to showcase young and upcoming Queensland artists.

She has been planning this move for some years now and has done a significant amount of research. She has picked a business name, "Johnson Art Gallery" and has narrowed down her preferred business structure as either a sole trader or a proprietary company, where she would be the sole director and sole shareholder.

Required:

Layla has engaged you as her accountant and asks for advice in relation to the following two questions:

(a) Layla realises that she no longer "has a boss" and is a self-employed businesswoman. She comes up with a list of four employment issues that concern her. She asks your group for assistance in completing the table below briefly outlining the differences for each of the four criteria between the accounting and taxation treatment in the case of a sole trader and a company.

CRITERIA	Sole Trader	Company
Salary and wages/Drawings
PAYG withholding/ PAYG instalment
Superannuation
Employee benefits (such as annual leave, sick leave and long service leave)

(b) Assuming that Layla sets up a company and becomes the sole shareholder and sole director. Layla asks your group to outline three (3) ways that she can get money "out" of her company and the income tax consequences of each option.