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Evidence Guide: FNSBKG405 - Establish and maintain a payroll system

Student: __________________________________________________

Signature: _________________________________________________

Tips for gathering evidence to demonstrate your skills

The important thing to remember when gathering evidence is that the more evidence the better - that is, the more evidence you gather to demonstrate your skills, the more confident an assessor can be that you have learned the skills not just at one point in time, but are continuing to apply and develop those skills (as opposed to just learning for the test!). Furthermore, one piece of evidence that you collect will not usualy demonstrate all the required criteria for a unit of competency, whereas multiple overlapping pieces of evidence will usually do the trick!

From the Wiki University

 

FNSBKG405 - Establish and maintain a payroll system

What evidence can you provide to prove your understanding of each of the following citeria?

Establish payroll requirements

  1. Apply knowledge of relevant legislation in relation to employment standards, and other legislative requirements in regards to payments
  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
  3. Establish payroll set-up for salary packaging
  4. Assess scope of payroll services BAS agent can provide and identify need for independent expert advice providers
Apply knowledge of relevant legislation in relation to employment standards, and other legislative requirements in regards to payments

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

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

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Establish payroll set-up for salary packaging

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

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

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Record payroll data

  1. Ensure payroll system includes complete and accurate employee data
  2. Review payroll data and clarify discrepancies with designated persons
  3. Enter employee pay period details, deductions and allowances in payroll system in accordance with source data
  4. Calculate payment due to individual employees to reflect standard pay and variations in accordance with employee source data
Ensure payroll system includes complete and accurate employee data

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Review payroll data and clarify discrepancies with designated persons

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

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

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

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

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Prepare and process payroll

  1. Conduct payroll preparation within designated timelines in accordance with organisational policy and procedures
  2. Calculate, record and reconcile employee in accordance with legislative requirements
  3. Reconcile total payments for pay period, and review and correct irregularities or refer them to designated persons for resolution
  4. Obtain authorisation of payroll and individual pay advice in accordance with organisational requirements
  5. Make arrangements for payments in accordance with organisational and legislative requirements
  6. Produce, review and store payroll records in accordance with organisational policy and security procedures
Conduct payroll preparation within designated timelines in accordance with organisational policy and procedures

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Calculate, record and reconcile employee in accordance with legislative requirements

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

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

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

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

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Make arrangements for payments in accordance with organisational and legislative requirements

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

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

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Handle payroll enquiries

  1. Respond to payroll enquiries in accordance with organisational and legislative requirements
  2. Provide information in accordance with organisational and legislative requirements
  3. Refer enquiries outside area of responsibility or knowledge to designated persons for resolution
  4. Provide additional information or complete follow-up action within designated timelines in accordance with organisational policy and procedures
Respond to payroll enquiries in accordance with organisational and legislative requirements

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Provide information in accordance with organisational and legislative requirements

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

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

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

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

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Maintain payroll

  1. Maintain all information and record keeping relating to payroll function in accordance with relevant legislation and regulations
  2. Produce and reconcile month-end and year-end checklists to ensure compliance with relevant legislative and management deadlines
  3. Update records and systems in line with salary reviews and other changes in employment status
  4. Establish back-up and disaster recovery systems
  5. Generate and distribute payroll reports in line with organisational policy
  6. Extract and apply business activity statement (BAS) and instalment activity statement (IAS) data in accordance with relevant legislation and regulations
Maintain all information and record keeping relating to payroll function in accordance with relevant legislation and regulations

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

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

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

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

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Establish back-up and disaster recovery systems

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Generate and distribute payroll reports in line with organisational policy

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

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

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assessed

Teacher: ___________________________________ Date: _________

Signature: ________________________________________________

Comments:

 

 

 

 

 

 

 

 

Instructions to Assessors

Evidence Guide

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

Required Skills and Knowledge

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.

Range Statement

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.