Sky Ltd started operating on 1 July 2017 with 13 employees. 8 years later, all of those employees were still with the company. On 1 July 2019, the company hired 13 more people but by 30 June 2025, only 8 of those employed at the beginning of that year were still employed by Sky Ltd. All employees are entitled to 13 weeks long-service leave after a conditional period of 10 years of employment with the company. Below is the information available as of 30 June 2025: The aggregated annual salaries of all employees hired on 1 July 2017 is now $700,000. The aggregated annual salaries of all current employees hired on 1 July 2019 is now $600,000. Salaries are expected to increase indefinitely at 5% per annum. The probability that employees hired on 1 July 2017 will continue to be employed for the duration of the conditional period is 54%. The probability that employees hired on 1 July 2019 will continue to be employed for the duration of the conditional period is 46%. The opening balance of the provision for long-service leave was $6,000. The interest rates on high-quality corporate bonds are as follows: 1 July 2024 30 June 2025 4% 5% 7% 8% 8% 6% 9% 9% Maturing in 2 years Maturing in 3 years Maturing in 4 years Maturing in 5 years What is the long-service leave provision expense recognised as of 30 June 2025?

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Payroll Entries

Payroll is a comprehensive record of employees that are paid by the company. Payroll classifies employees into various categories according to their function and pays scale (basic wage, allowance, income tax, other taxes, employee loans, etc.). Payroll processes form the bedrock of every organization as it contains sensitive information on the ‘wage and paycheck’ portion of the company’s strength—its employees. The organization needs to keep a track of the employees currently on the payroll, the net payout for the company, the record of transactions related to the employees including deductions and payroll taxes to identify the liability and its effect on the balance sheet (and other financial statements). Payroll records also include qualitative factors such as the conduct of the employee.