Your Co-operative Education Role: being knowledgeable in your major field(s) of study by demonstrating the application of knowledge from your major(s) to your Co-operative Education Placement.
In this section you should explain how knowledge from your major(s) applies to your tasks and discuss your progress and performance in your role.
1. For each key task that you have undertaken so far, briefly describe the task and explain how theories, concepts, models, frameworks and/or technical competencies, from your major(s) have applied. 2000 words. In your discussion you should:
- refer to a comprehensive range of theory, concepts, models, frameworks and/or technical competencies using in-text citations.
I have attached some theory, concepts, models, frameworks and/or technical competencies. Please include further theory, concepts, models, frameworks and/or technical competencies. All researched information must be acknowledged by citing and referencing in APA 6th ed – this was poorly done last time so make sure it is done accurately this time.
- explain how the theory was relevant and guided you to complete your tasks.
2. Reflect on how well you perceive you have performed your tasks and other activities to date. You must use supporting evidence and/or examples of progress made. 1000 words. Think of times when you were an accountant
Tasks:
- Preparation of GST Return
- Preparation of PAYE Returns
- Collation and preparation of income and rental statements
- Completing work-papers for trading clients to support financial statements
- Preparation of Income Tax Returns
- Assistance in admin duties such as answering phones, filing etc.
- Keep company database up to date.
GST Return:-Goods and Services Tax Return (GST 101)
1. In myIR Secure online services
2. Mailed on Postal address
The GST return is a service that is made available:
When a GST return is filed through online myIR services, thereafter, customer no need to file his return physically. Thereafter, customer is intimated online to fill his GST return using myIR services. (Cassino & Wallis, 2010)
While, filing returns the following details shall populate:-
a) Name
b) Name of business as applicable
c) IRD/GST number
d) Contact Number
e) Bank details
f) Percentage of ratio (as applicable)
g) Period of Taxation (Condliffe, 1959)
GST is a tax that is applied on most of the goods and services supplied in New Zealand. The tax is also applied on imported goods as well as on certain services. The rate at which GST is applied is 12.5% on all taxable goods and supplies. Besides, individual even organizations are registered for GST return to collect on behalf of their customers. (Dabán, 2011)
The concept of GST return for consideration under accounting had arisen, when there was an uncertainty as to whether GST needs to be considered under business for income tax for each purpose. (Conway, 2000)
In order, to avoid the confusion, Income Tax Act defined GST under section 6(1) of GST Act 1985 as a taxable activity.
GST return has to be filed by an individual or an organization if an annual turnover, or monthly turnover exceeds $60,000 or turnover in a particular month or in a year is likely to exceed $60,000. (Gaukrodger, 2015)
Entities that qualify for differential reporting within the “Framework of Differential Reporting” shall consider revenue and expenses either with Goods and Service Tax (GST) including (Gross) or with GST excluded (net) (Labuschagne & Vowles, 2010)
Method that has been adopted by the reporting entity shall be as follows:-
a) Apply consistently all revenue and expenses items
b) Disclosure in statement of Accounting policies
c) Where GST input tax is irrecoverable. (Keene & Thomson, 2007)
The GST could be applied using accounting basis in the following manner. The three basis by which GST is considered are as follows:-
a) Invoice Basis
b) Payment or Cash basis
c) Hybrid Basis (Barker, Buckle, & St. Clair, 2008)
PAYE RETURNS:
Online access allows sending and receiving of PAYE (pay as you earn) notices, forms and returns. According, to PAYE it is necessary that all employers report the payroll information of their respective employees using a full payment submission form for each pay period. By using this mode of filing, it cuts down the total time, administration and errors. (Blanchard, 2007)
The theory behind PAYE is that, it helps an employee from the necessity of filing tax returns. Deductions that occur and used tax return filing are wage income and standard deductions.
The concept of adopting PAYE has been due to its ‘step by step’ guidance. Under the PAYE concept, there is no change to an employer’s tax or NI liability. (Beetsma & Giuliodori, 2011)
The model under which PAYE works is as follows:
a) On registering an apprentice via website, employer provides with PAYE reference and is authorized with HMRC to deduct apprenticeship funding from their PAYE payment.
b) An employer deducts apprenticeship funding from next RTI payment. In this it involves, employer calculating the total liabilities.
c) Employers who lack sufficient PAYE payments apply separately to HMRC for reimbursement payment.
d) The apprentice completes training and is assessed and thereafter is notified of his eligibility to deduct “Payment by results”. (Frölich, 2008)
Technical competency of PAYE is the ability to perform its activities of wages calculations to a defined standard and consistency over a period of time. PAYE is applied by an employer to estimate the best amount that can be considered under taxable benefit that is chargeable to income tax with respect to benefit provided to an employee. (Petrongolo, 2009)
Collation and Preparation of Income and Rental Statements:
The collation and preparation of income and rental statement is conducted to determine the total revenue earned by the organization from sale of goods and services. The income shows the total revenue that is being recognized for a period. The rent is the total cost incurred by the organization or earned by the organization by leasing or letting out. The NZ IFRS 7.20 covers rental income (Mare & Hyslop, 2007). The property is held to meet the service delivery objectives rather than for strategic purposes. Property is also held for social services where rental revenue is incidental to purpose of holding. The model of financial statement has classified interest income, interest expenses, dividend income, and rental expenses as operating cash flows under NZ IAS7.31. The Framework of the above accounting considers reporting entity nature. There are three aspects identified by the framework associated with the statement of financial position, statement of profit and loss account and income &expenses. The technical competencies that are considered are Accounts preparation, Costs and revenues, Final accounts preparation, Indirect Tax. Income statement is prepared on accrual basis of accounting, while, rent as an expense is recognized when they are incurred or likely to be incurred for previous or subsequent periods.