Unit of Competency Mapping – Information for Teachers/Assessors – Information for Learners

FNSBKG405 Mapping and Delivery Guide
Establish and maintain a payroll system

Version 1.0
Issue Date: May 2024


Qualification -
Unit of Competency FNSBKG405 - Establish and maintain a payroll system
Description
Employability Skills
Learning Outcomes and Application This unit describes the skills and knowledge required to record and prepare payroll documentation, respond to enquiries and process accurate payroll data for manual and computerised systems.It applies to individuals who use a range of organisational and other specialist techniques. They may work directly for organisations or be small business owners, contractors or service providers.Work functions in the occupational areas where this unit may be used are subject to regulatory requirements. This unit is designed to meet educational requirements of the Tax Practitioner Board (TPB). Refer to the FNS Implementation Guide Companion Volume or the relevant regulator for specific guidance on requirements.
Duration and Setting X weeks, nominally xx hours, delivered in a classroom/online/blended learning setting.

Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the bookkeeping field of work and include access to:

common office equipment, technology, software and consumables

workplace reference materials such as procedural manuals and company policy

actual or simulated payroll data.

Assessors must satisfy NVR/AQTF assessor requirements

This unit is designed to meet the education requirements of the Tax Practitioner Board (TPB). Where registration with the TPB is sought, assessment must reflect the conditions described by the regulator which stipulate that a significant amount (at least 40%) must be completed under some form of independent supervision. Where recognition of prior learning (RPL) is used, it must also meet the requirements of the Board’s policy on RPL.

Details of requirements can be accessed on the TPB website at <http://www.tpb.gov.au>.

If undertaking this unit for BAS agent registration, the following items in the Range of Conditions must be addressed in the assessment to meet educational requirements for registration with the TPB:

payroll preparation

payroll records.
Prerequisites/co-requisites
Competency Field
Development and validation strategy and guide for assessors and learners Student Learning Resources Handouts
Activities 		Slides
PPT 		Assessment 1 Assessment 2 Assessment 3 Assessment 4
Elements of Competency Performance Criteria              
Element: Establish payroll requirements
  • Apply knowledge of relevant legislation in relation to employment standards, and other legislative requirements in regards to payments
  • Seek instruction from authorised parties in relation to relevant state and modern awards regarding details to be set up within payroll system for individual employees
  • Establish payroll set-up for salary packaging
  • Assess scope of payroll services BAS agent can provide and identify need for independent expert advice providers
       
Element: Record payroll data
  • Ensure payroll system includes complete and accurate employee data
  • Review payroll data and clarify discrepancies with designated persons
  • Enter employee pay period details, deductions and allowances in payroll system in accordance with source data
  • Calculate payment due to individual employees to reflect standard pay and variations in accordance with employee source data
       
Element: Prepare and process payroll
  • Conduct payroll preparation within designated timelines in accordance with organisational policy and procedures
  • Calculate, record and reconcile employee in accordance with legislative requirements
  • Reconcile total payments for pay period, and review and correct irregularities or refer them to designated persons for resolution
  • Obtain authorisation of payroll and individual pay advice in accordance with organisational requirements
  • Make arrangements for payments in accordance with organisational and legislative requirements
  • Produce, review and store payroll records in accordance with organisational policy and security procedures
       
Element: Handle payroll enquiries
  • Respond to payroll enquiries in accordance with organisational and legislative requirements
  • Provide information in accordance with organisational and legislative requirements
  • Refer enquiries outside area of responsibility or knowledge to designated persons for resolution
  • Provide additional information or complete follow-up action within designated timelines in accordance with organisational policy and procedures
       
Element: Maintain payroll
  • Maintain all information and record keeping relating to payroll function in accordance with relevant legislation and regulations
  • Produce and reconcile month-end and year-end checklists to ensure compliance with relevant legislative and management deadlines
  • Update records and systems in line with salary reviews and other changes in employment status
  • Establish back-up and disaster recovery systems
  • Generate and distribute payroll reports in line with organisational policy
  • Extract and apply business activity statement (BAS) and instalment activity statement (IAS) data in accordance with relevant legislation and regulations
       


Evidence Required

List the assessment methods to be used and the context and resources required for assessment. Copy and paste the relevant sections from the evidence guide below and then re-write these in plain English.

ELEMENT

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Establish payroll requirements

1.1 Apply knowledge of relevant legislation in relation to employment standards, and other legislative requirements in regards to payments

1.2 Seek instruction from authorised parties in relation to relevant state and modern awards regarding details to be set up within payroll system for individual employees

1.3 Establish payroll set-up for salary packaging

1.4 Assess scope of payroll services BAS agent can provide and identify need for independent expert advice providers

2. Record payroll data

2.1 Ensure payroll system includes complete and accurate employee data

2.2 Review payroll data and clarify discrepancies with designated persons

2.3 Enter employee pay period details, deductions and allowances in payroll system in accordance with source data

2.4 Calculate payment due to individual employees to reflect standard pay and variations in accordance with employee source data

3. Prepare and process payroll

3.1 Conduct payroll preparation within designated timelines in accordance with organisational policy and procedures

3.2 Calculate, record and reconcile employee in accordance with legislative requirements

3.3 Reconcile total payments for pay period, and review and correct irregularities or refer them to designated persons for resolution

3.4 Obtain authorisation of payroll and individual pay advice in accordance with organisational requirements

3.5 Make arrangements for payments in accordance with organisational and legislative requirements

3.6 Produce, review and store payroll records in accordance with organisational policy and security procedures

4. Handle payroll enquiries

4.1 Respond to payroll enquiries in accordance with organisational and legislative requirements

4.2 Provide information in accordance with organisational and legislative requirements

4.3 Refer enquiries outside area of responsibility or knowledge to designated persons for resolution

4.4 Provide additional information or complete follow-up action within designated timelines in accordance with organisational policy and procedures

5. Maintain payroll

5.1 Maintain all information and record keeping relating to payroll function in accordance with relevant legislation and regulations

5.2 Produce and reconcile month-end and year-end checklists to ensure compliance with relevant legislative and management deadlines

5.3 Update records and systems in line with salary reviews and other changes in employment status

5.4 Establish back-up and disaster recovery systems

5.5 Generate and distribute payroll reports in line with organisational policy

5.6 Extract and apply business activity statement (BAS) and instalment activity statement (IAS) data in accordance with relevant legislation and regulations

Evidence of the ability to:

accurately identify, calculate and input data for payments into manual or computerised payroll systems

produce payroll reports in accordance with organisational and legislative requirements

present payroll report for verification and approval

maintain all records in compliance with organisational and legislative requirements that relate to security and confidentiality of information.

Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.

To complete the unit requirements safely and effectively, the individual must:

explain the scope of services appropriate for a business activity statement (BAS) agent providing payroll services

explain the application of award and enterprise agreements and relevant industrial instruments to payroll maintenance responsibilities

identify and explain organisational policy and procedures that affect payroll, including the structure of authority in organisations

explain industry codes of practice relevant to payroll operations

compare and contrast manual and computerised payroll systems

identify relevant legislation and record-keeping requirements from all levels of government that affect business operation and reporting requirements, especially in regard to:

Fair Work Act

National Employment Standards

Superannuation Guarantee (Administration) Act

corporations law

workers compensation and work health and safety

tax related to payroll activities

Privacy Act (confidentiality and security of records)

Higher Education Loan Program (HELP)

Medicare levy

Tax Agent Services Act (TASA)

current state, territory and Commonwealth industry and modern awards, and enterprise bargaining agreements

individual employment contracts

Commonwealth, state and territory leave Acts including annual, sick and long service

Australian Bureau of Statistics (ABS) Act

describe current Australian Tax Office (ATO) requirements such as:

Australian Business Number (ABN)

employment declaration

tax file number (TFN) declaration

identify the Tax Practitioners Board (TPB) requirements, including:

registration and scope of services documentation requirements for BAS agents

Code of Professional Conduct

explain relevant taxation law, including:

pay as you go (PAYG) withholding tax

fringe benefits tax (FBT)

outline the key aspects of routine and non-routine requirements for payroll, including:

routine: award payments, salary amount, salary packaging, superannuation guarantee and super reporting

non-routine: termination payments and super guarantee charge.

Submission Requirements

List each assessment task's title, type (eg project, observation/demonstration, essay, assignment, checklist) and due date here

Assessment task 1: [title]      Due date:

(add new lines for each of the assessment tasks)

Assessment Tasks

Copy and paste from the following data to produce each assessment task. Write these in plain English and spell out how, when and where the task is to be carried out, under what conditions, and what resources are needed. Include guidelines about how well the candidate has to perform a task for it to be judged satisfactory.

ELEMENT

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Establish payroll requirements

1.1 Apply knowledge of relevant legislation in relation to employment standards, and other legislative requirements in regards to payments

1.2 Seek instruction from authorised parties in relation to relevant state and modern awards regarding details to be set up within payroll system for individual employees

1.3 Establish payroll set-up for salary packaging

1.4 Assess scope of payroll services BAS agent can provide and identify need for independent expert advice providers

2. Record payroll data

2.1 Ensure payroll system includes complete and accurate employee data

2.2 Review payroll data and clarify discrepancies with designated persons

2.3 Enter employee pay period details, deductions and allowances in payroll system in accordance with source data

2.4 Calculate payment due to individual employees to reflect standard pay and variations in accordance with employee source data

3. Prepare and process payroll

3.1 Conduct payroll preparation within designated timelines in accordance with organisational policy and procedures

3.2 Calculate, record and reconcile employee in accordance with legislative requirements

3.3 Reconcile total payments for pay period, and review and correct irregularities or refer them to designated persons for resolution

3.4 Obtain authorisation of payroll and individual pay advice in accordance with organisational requirements

3.5 Make arrangements for payments in accordance with organisational and legislative requirements

3.6 Produce, review and store payroll records in accordance with organisational policy and security procedures

4. Handle payroll enquiries

4.1 Respond to payroll enquiries in accordance with organisational and legislative requirements

4.2 Provide information in accordance with organisational and legislative requirements

4.3 Refer enquiries outside area of responsibility or knowledge to designated persons for resolution

4.4 Provide additional information or complete follow-up action within designated timelines in accordance with organisational policy and procedures

5. Maintain payroll

5.1 Maintain all information and record keeping relating to payroll function in accordance with relevant legislation and regulations

5.2 Produce and reconcile month-end and year-end checklists to ensure compliance with relevant legislative and management deadlines

5.3 Update records and systems in line with salary reviews and other changes in employment status

5.4 Establish back-up and disaster recovery systems

5.5 Generate and distribute payroll reports in line with organisational policy

5.6 Extract and apply business activity statement (BAS) and instalment activity statement (IAS) data in accordance with relevant legislation and regulations

This section specifies different work environments and conditions that may affect performance. Essential operating conditions that may be present (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) are included.

Payroll preparation must include:

calculation of gross pay

calculation of net pay

preparing pay advice slips

preparing payments

superannuation

taxation and other deductions.

Payroll records must include:

electronic funds transfer

employee summary report

end of month reports

end of year reports

pay advice slips

payment summaries

taxation reports.

Copy and paste from the following performance criteria to create an observation checklist for each task. When you have finished writing your assessment tool every one of these must have been addressed, preferably several times in a variety of contexts. To ensure this occurs download the assessment matrix for the unit; enter each assessment task as a column header and place check marks against each performance criteria that task addresses.

Observation Checklist

Tasks to be observed according to workplace/college/TAFE policy and procedures, relevant legislation and Codes of Practice Yes No Comments/feedback
Apply knowledge of relevant legislation in relation to employment standards, and other legislative requirements in regards to payments 
Seek instruction from authorised parties in relation to relevant state and modern awards regarding details to be set up within payroll system for individual employees 
Establish payroll set-up for salary packaging 
Assess scope of payroll services BAS agent can provide and identify need for independent expert advice providers 
Ensure payroll system includes complete and accurate employee data 
Review payroll data and clarify discrepancies with designated persons 
Enter employee pay period details, deductions and allowances in payroll system in accordance with source data 
Calculate payment due to individual employees to reflect standard pay and variations in accordance with employee source data 
Conduct payroll preparation within designated timelines in accordance with organisational policy and procedures 
Calculate, record and reconcile employee in accordance with legislative requirements 
Reconcile total payments for pay period, and review and correct irregularities or refer them to designated persons for resolution 
Obtain authorisation of payroll and individual pay advice in accordance with organisational requirements 
Make arrangements for payments in accordance with organisational and legislative requirements 
Produce, review and store payroll records in accordance with organisational policy and security procedures 
Respond to payroll enquiries in accordance with organisational and legislative requirements 
Provide information in accordance with organisational and legislative requirements 
Refer enquiries outside area of responsibility or knowledge to designated persons for resolution 
Provide additional information or complete follow-up action within designated timelines in accordance with organisational policy and procedures 
Maintain all information and record keeping relating to payroll function in accordance with relevant legislation and regulations 
Produce and reconcile month-end and year-end checklists to ensure compliance with relevant legislative and management deadlines 
Update records and systems in line with salary reviews and other changes in employment status 
Establish back-up and disaster recovery systems 
Generate and distribute payroll reports in line with organisational policy 
Extract and apply business activity statement (BAS) and instalment activity statement (IAS) data in accordance with relevant legislation and regulations 

Forms

Assessment Cover Sheet

FNSBKG405 - Establish and maintain a payroll system
Assessment task 1: [title]

Student name:

Student ID:

I declare that the assessment tasks submitted for this unit are my own work.

Student signature:

Result: Competent Not yet competent

Feedback to student

 

 

 

 

 

 

 

 

Assessor name:

Signature:

Date:

Assessment Record Sheet

FNSBKG405 - Establish and maintain a payroll system

Student name:

Student ID:

Assessment task 1: [title] Result: Competent Not yet competent

(add lines for each task)

Feedback to student:

 

 

 

 

 

 

 

 

Overall assessment result: Competent Not yet competent

Assessor name:

Signature:

Date:

Student signature:

Date: