This unit applies to individuals employed in a range of work environments who are required to establish and work with payroll systems. They may work as senior administrative staff or may have responsibility for managing payroll systems and calculations.

ELEMENT

PERFORMANCE CRITERIA

1. Establish procedures for the management of payroll

1.1. Establish security procedures that ensure the confidentiality and security of payroll information

1.2. Ensure procedures guarantee substantiation of claims for allowances

1.3. Establish control measures to safeguard organisation's financial resources in accordance with legislative and organisational requirements

1.4. Establish systems to ensure that statutory obligations are met and records are kept for the period determined by government legislation

2. Prepare payroll data

2.1. Use nominated industrial awards, contracts and government legislation to calculate gross pay and annual salaries

2.2. Calculate statutory and voluntary deductions using government and employee documentation

2.3. Provide payroll data to payroll processor for calculation within designated time lines

3. Authorise payment of salaries

3.1. Check payroll, and authorise salaries and wages for payment in accordance with organisational policy and procedures

3.2. Reconcile salaries, wages and deductions in accordance with organisational policy and procedures

3.3. Deal with salary, wage and related enquiries in accordance with organisational policy and procedures

4. Administer salary records

4.1. Process declaration forms for new and existing employees in accordance with Australian Taxation Office requirements

4.2. Forward periodic deductions to nominated creditors within designated time lines

4.3. Prepare and despatch payments to government authorities accurately and in accordance with the relevant government legislation

4.4. Calculate and transcribe group tax amounts and make payments in accordance with taxation procedures

4.5. Prepare and reconcile employee group certificate amounts from salary records

Required skills

communication skills to answer enquiries, and to explain and resolve discrepancies with employees

literacy skills to follow complex financial procedures and to follow and write detailed instructions

numeracy skills to:

use financial formulae

calculate gross and net pay

compare differing rates of pay over a given time span of the same nature

prepare cash analysis sheets

reconcile figures and rectify anomalies to ensure accuracy.

Required knowledge

key provisions of relevant legislation from all forms of government, standards, regulations and codes that may affect aspects of business operations, such as:

Australian Taxation Office regulations

anti-discrimination legislation

ethical principles

codes of practice

financial legislation

privacy laws

relevant industrial awards

other relevant government and statutory bodies in relation to payroll

Superannuation Guarantee (Administration) Act and superannuation regulations

organisational policies and procedures across the full range of tasks requiredpayroll processes.

The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.

Overview of assessment

Critical aspects for assessment and evidence required to demonstrate competency in this unit

Evidence of the following is essential:

documenting steps undertaken to establish payroll system

using data and calculations to calculate payroll, including a range of deductions

preparing appropriate records to record payroll processing.

Context of and specific resources for assessment

Assessment must ensure:

access to office equipment and resources, such as:

Australian Accounting and Auditing Standards

calculator

certified or workplace agreements

computer equipment and relevant software

HECS/HELP documentation

organisation's accounting system

organisational contracts

paper-based or electronic payroll system

relevant Australian Taxation Office legislation

relevant industrial Awards

Superannuation Guarantee (Administration) Act

access to samples of financial data.

Method of assessment

A range of assessment methods should be used to assess practical skills and knowledge. The following examples are appropriate for this unit:

analysis of responses to case studies and scenarios

demonstration of techniques

direct questioning combined with review of portfolios of evidence and third party workplace reports of on-the-job performance by the candidate

review of authenticated documents from the workplace or training environment

oral or written questioning to assess knowledge of accounting procedures and techniques.

Guidance information for assessment

Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended, for example:

financial administrationunits

other financial management units.

The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.

Security procedures may include:

authorised access

back-up files

computer passwords

employees signing for pay

ensuring security of passwords and keys

keeping payroll documents secure

maintaining security and confidentiality of employees' details

numbering payroll registers

restricting access to electronic files and locking paper-based confidential information

separating locations of confidential information

storage of information off site

supervision of timesheets

Control measures may include:

authorisation requirements

dual checking system

internal control policies and procedures

multiple checks and balances

reconciliation of records

separation of duties

Legislative and organisational requirements may include:

Australian Accounting and Auditing Standards

Australian Securities and Investments Commission (ASIC) requirements

Australian Taxation Office regulations

corporations law

Fringe Benefits Tax (FBT)

Higher Education Contribution Scheme (HECS)

Higher Education Loan Programme (HELP)

legislation and regulations in relation to superannuation such as the Superannuation Guarantee (Administration) Act

organisational policy and procedures for cash handling

Pay As You Go (PAYG) tax

superannuation

tax file number

Nominated industrial awards, contracts and government legislation may include:

certified and workplace agreements

enterprise agreements

federal and state/territory awards

use of Wageline

Calculating gross pay and annual salaries may include:

allowances

annual leave loading

appropriate pay structure

deductions

employment history cards

FBT

FBT returns

long service leave

overtime

penalty rates

salary packaging items

salary sacrificing

sick leave

time sheets

Statutory and voluntary deductions may include:

HECS

HELP

insurance

Medicare levy

PAYG tax

payroll tax

superannuation levy

union fees

Designated time lines may include:

Australian Taxation Office time lines for submission such as group tax, fringe benefits tax

Business Activity Statement (BAS)

stipulated time period before employee departs organisation

stipulated time period before pay is due to employees

organisational time lines

Nominated creditors may include:

Australian Taxation Office

government agencies

health funds

membership organisations

those nominated as part of salary packaging

union

vehicle leasing organisations

Unit sector

Finance - Financial Management

This unit contains employability skills.