FNSTPB412 - Establish and maintain payroll systems

Unit Of competency

Modification History

Release

Comments

Release 1

This version first released with the FNS Financial Services Training Package Version 8.0.

Supersedes and is equivalent to FNSTPB402 Establish and maintain payroll systems.

Application

This unit describes the skills and knowledge required to record and prepare payroll documentation, respond to enquiries, and process payroll data for computerised systems.

The unit applies to individuals and Business Activity Statement (BAS) agents, who use a range of organisational and other specialist techniques to manage payroll systems. 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 the education requirements of the Tax Practitioners Board (TPB). Users are advised to check with the relevant regulatory authorities to confirm those requirements.

Unit Sector

Tax practitioners

Elements and Performance Criteria

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 Assess scope of payroll services that a BAS agent can provide, and identify need for independent expert advice 1.2 Apply knowledge of legislation in relation to National Employment Standards, and legislative requirements in regard to payroll payments 1.3 Research and identify relevant state and modern awards, and employment agreements required for establishing a payroll system for individual employees 1.4 Document the application and implementation of an organisation’s payroll reporting requirements through Single Touch Payroll according to statutory requirements
2. Record payroll data	2.1 Configure payroll system with complete data provided by employee and employer 2.2 Review payroll data, identify discrepancies, and determine resolution procedure according to organisational policies and procedures 2.3 Enter employee pay period details in payroll system according to source data
3. Prepare and process payroll	3.1 Conduct payroll preparation within designated timeframes and according to organisational policies and procedures 3.2 Identify legislative and organisational requirements relevant to employment termination processes and payment and identify procedures for specialist review prior to payment 3.3 Calculate and record payroll using employee source data according to legislative requirements 3.4 Reconcile total payments for pay period, and review and correct irregularities according to organisational policies and procedures 3.5 Make arrangements for individuals’ payments according to organisational authorisation policies and procedures 3.6 Observe methodology of preparing an individual’s pay advice for distribution according to organisational and legislative requirements 3.7 Generate, review and store payroll records according to organisational, security procedures and statutory requirements
4. Handle payroll enquiries	4.1 Respond to payroll enquiries and provide information according to organisational policies and procedures, and legislative and regulatory requirements 4.2 Refer enquiries outside area of responsibility and knowledge to designated persons for resolution
5. Maintain payroll	5.1 Identify record keeping requirements relating to payroll according to current legislative and regulatory requirements 5.2 Prepare and reconcile month-end and year-end payroll records 5.3 Update records and systems according to salary reviews and other changes in employment status 5.4 Generate payroll reports according to organisational policies and procedures

Foundation Skills

This section describes those language, literacy, numeracy and employment skills that are essential to performance but not explicit in the performance criteria.

SKILL	DESCRIPTION
Numeracy	Uses calculation skills and mathematical formulas to prepare, record, reconcile, check and report payroll data
Oral communication	Participates effectively in exchanges of information using questioning and active listening to clarify details, and clear and direct language Clearly articulates responses to enquiries using language, tone and pace appropriate to audience
Reading	Reviews and compares details of information to meet requirements, and interprets and analyses texts to inform actions
Writing	Records detailed information accurately in required formats Produces logically sequenced responses to enquiries
Planning and organising	Plans, organises and completes work according to defined requirements and time frames, taking responsibility for sequencing tasks to achieve efficient outcomes
Technology	Uses the main features and functions of digital tools to conduct research, design work processes and to complete work tasks

Range of Conditions

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:	calculating gross pay calculating net pay preparing pay advice slips preparing payments calculating superannuation, leave entitlements, 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 payroll reporting, including year-end reconciliations taxation reports termination payments.

Unit Mapping Information

Supersedes and is equivalent to FNSTPB402 Establish and maintain payroll systems.

Links

Companion Volume Implementation Guide is found on VETNet - https://vetnet.gov.au/Pages/TrainingDocs.aspx?q=c7200cc8-0566-4f04-b76f-e89fd6f102fe

Assessment requirements

Modification History

Release

Comments

Release 1

This version first released with the FNS Financial Services Training Package Version 8.0.

Supersedes and is equivalent to FNSTPB402 Establish and maintain payroll systems.

Performance Evidence

The candidate must demonstrate the ability to complete the tasks outlined in the elements, performance criteria and foundation skills of this unit, including evidence of the ability to:

identify, calculate and input data from time-recording systems for payments into computerised payroll systems and produce payroll reports on at least three occasions for a minimum of five employees covering two separate pay periods
produce a payroll report according to regulatory and legislative requirements
present a payroll report for verification and approval
maintain records according to regulatory and legislative requirements that relate to security and confidentiality of information.

Knowledge Evidence

The candidate must be able to demonstrate knowledge to complete the tasks outlined in the elements, performance criteria and foundation skills of this unit, including knowledge of:

scope of services offered by a business activity statement (BAS) agent providing payroll services
key principles of award and enterprise agreements and industrial instruments required to maintain payroll systems
organisational policies and procedures that affect payroll, including the structure of authority in organisations
best practices relevant to payroll operations, including Single Touch Payroll
legislative and record-keeping requirements that affect business operation and reporting requirements relevant to payroll, including:

Fair Work Act
National Employment Standards, including current commonwealth, state and territory industry and modern awards, and enterprise bargaining agreements
Superannuation Guarantee (Administration) Act
workers compensation
state payroll tax relating to payroll activities
Privacy Act and requirements relating to confidentiality and security of records
Higher Education Loan Program (HELP)
Medicare levy
Tax Agent Services Act (TASA)
individual employment agreements
commonwealth, state and territory leave Acts, including annual, personal, paid parental and long service
Australian Bureau of Statistics (ABS) Act

current Australian Taxation Office (ATO) requirements relating to payroll systems, including:

Australian business number (ABN)
income statements employment termination payments (ETPs)
tax file number (TFN) declaration

Tax Practitioners Board (TPB) requirements relating to payroll systems, including:

registration and scope of services documentation requirements for BAS agents
code of professional conduct

key requirements of taxation law relating to payroll systems, including:

pay as you go withholding (PAYGW) tax
fringe benefits tax (FBT) as it relates to salary packaging

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

routine: award payments, salary amount, salary packaging, superannuation guarantee and superannuation reporting
non-routine: termination payments and superannuation guarantee charge.

Assessment Conditions

Skills in this unit must be demonstrated in a workplace or simulated environment where the conditions are typical of those in a working environment in this industry.

This includes access to:

office equipment, technology, software and consumables required to establish and maintain a payroll system, including:

workplace reference materials, such as procedural manuals and organisational policy
actual or simulated payroll data.

Assessors of this unit must satisfy the requirements for assessors in applicable vocational education and training legislation, frameworks and/or standards.

This unit is designed to meet the education requirements of the TPB. Where registration with the TPB is sought, assessment must reflect the conditions described by the regulator. 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 (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.