You are working within a team of small business consultants, ‘Headstrong Consult

Question

You are working within a team of small business consultants, ‘Headstrong Consultants Pty Limited’ (HC). For the last 12 months you have been reporting to a specific manager who has also been your mentor. The manager believes you are ready to take on more responsibility and consult closer with clients.

This month you will be introduced to two new clients, Josip and Marnie, who are starting a new business. The new business will be constructing and selling portable washing machines. Their business name will be ‘Portable Washing Machines’, PWM.

Josip and Marnie will sell direct to retail stores, such as, camping retailers, some rural department stores and hardware stores. However, they first plan to sell to independent hardware stores in the state. They intend to sell to the major department stores after they have established their business and have put systems in place that allow them to efficiently and effectively meet the demand as it grows.

Josip and Marnie will begin selling 2 types of portable washing machines:-

“Mini Manual Porto”, (MMP) – Small load – manual operation (no electrical power is used)

“Mini Electric Porto Washer”, (MEP) – Small load- plug in and operates

When the business’s Cashflow has increased then Josip and Marnie intend to promote and sell their other washing machine that they have developed. It will be called “Plug & Go Porto Washer”, (MPGPW) and operates by electricity through a power point plug. They are still trying to obtain a patent for this future product.

Josip and Marnie’s business will involve the following:-

i) Purchasing parts/sections of these machines

ii) Building their machines with these parts

iii) Selling these machines to retail stores. At first, smaller independent hardware and camping

retail stores. Later through department stores.

iv) Repairing these machines (warranty is 12 months)

v) Charging a fee for out-of-warranty repairs

Further information of Josip and Marnie’s new business:-

? May operate from a large shed at Marnie’s home for the first 12.

? After 12 months from the start of opening their business, they will rent a small warehouse with a partitioned section for an office.

? Repairs – if required will be carefully managed and planned by Josip to ensure these commitment are met in a timely and organised system.

? Services and products are shown separately on invoices to distinguish the sale of a product or spare part and a service.

? Requires purchasing sections of the products from several suppliers.

? Will endeavour to have quality control systems in place for each product built - to minimise any disgruntled customers and obtain good reviews. Avoid returned products and inefficient use of time. Have already purchased some specific equipment and products as well as built many of their products ready for sale.

Josip and Marnie have sufficient funds to support their new business for a while but want to begin making a profit within the first year.

The business will open by the 1st July, 2018.
Josip and Marnie need guidance and support so have made an appointment to see your manager for advice. Your manager will be introducing them to you as their consultant and point of contact for ‘Headstrong Consultants’.

Answer points from below

1. Record keeping and compliance. Discuss who may be responsible for general record keeping and who may be responsible for ensuring tax compliance requirements. Include in your report a list of the probable tax obligations for their business with due dates.

2. Provide a list of information that Josip and Marnie should have written within the business’s Policy & Procedure Manual for staff.

3. List and explain the employer’s obligations that they should be aware about when employing staff. List organisations (providing their website) that may provide further and/or supporting information and resources for employers.

Explanation / Answer

Answer:

List of Employer’s Obligation for employing staff:

·         Paying correct wages to your employees

·         Providing payslips to your employees

·         Reimbursing work related expenses to your employees

·         Ensure employee is having safe working environment

·         Providing every employee workers compensation insurance

·         not acting in a way that may seriously damage an employee's reputation or cause mental distress or humiliation

·         not acting in a way that damages the trust and confidence necessary for an employment relationship

·         not providing a false or misleading reference

·         Deducting right amount of Tax from from employee’s salary

·         making appropriate payment under the Superannuation Guarantee legislation.

List of sources where you can find the information about employer’s obligation while employing staff:

1.       United States Depart of Labour

2.       United States Citizenship and Immigration Services

3.       Office of Labour Management Standards

4.       Office of Workers Compensation Programme

5.       Wage and Gour Division

6.       Employee Benefits Security Administration

7.       Employment and Training Administration

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