FNSBKG405A - Establish and maintain payroll system

Student Assessment Task

Student Name:
Student Number:
Student Signature: / Date:
Facilitator Name:

You are required to complete the following assessment tasks and ensure that any printouts of evidence is signed by yourself in the bottom right hand corner. The completed Assessment Tasks and any evidence must be provided to your facilitator in order to be assessed on the subject, and ultimately marked Competent.

What do I need to do?

Read the Unit of Competency (Page 2) of this document. You may use the Unit of Competency as a self checklist. The Unit of Competency details the elements and the performance criteria for this unit.

Part A (Page 3) of this document lists the Written (Questions and Answers) that must be completed as part of your assessment.

Part B (Page 11) of this document lists the Practical Exercise/Evidence that must be completed as part of your assessment.

Part C (Page 13) of this document refers to observation by the assessor on the learner’s competence in that element and/or unit. If applicable, the checklist should be used by the assessor in the workplace, else the observation needs to be conducted in a simulated environment and supported by an employer or supervisor. See Part D, 3rd Party Observation

If applicable, Part D (Page 15) of this document refers to 3rd Party observation. Ensure all contact details are correct and instructions are followed.

Part E (Page 16)of this document refers to Outcome. Please ensure you have provided your name, signature and date that you are submitting this Assessment Tool, and that any attachments also include your signature on the bottom right hand corner.

Application of the unit

This unit applies to individuals who are responsible for providing contract bookkeeping services, bookkeepers working directly for organisations and small business owners. These bookkeepers may be carrying out activities across all industries.

This unit requires the application of skills and knowledge to establish and maintain a payroll system which includes recording and preparing payroll documentation and dealing with enquiries in regards to payroll. Specific knowledge of relevant state/territory and commonwealth legislation and regulation is required.

FNSBKPG405A – Establish and maintain payroll system

This Unit of Competency has four elements. Each element has multiple performance criteria. The elements and performance criteria are listed below.

  1. Record payroll data
  2. Payroll system is checked and set up if necessary to ensure that employee data is included
  3. Payroll data is checked and discrepancies are clarified with designated person/s
  4. Employee pay period details, deductions and allowances are entered in payroll system in accordance with source data
  5. Payment due to individual employees is calculated to reflect standard pay and variations in accordance with employee source data
  1. Prepare payroll
  2. Payroll is prepared within designated timelines in accordance with organisational policies and procedures
  3. Employee entitlements are calculated, recorded and reconciled in accordance with legislative requirements
  4. Total payments for pay period are reconciled, and irregularities are checked and corrected, or referred to designated person/s for resolution
  5. Arrangements for payment are made in accordance with organisational and individual requirements
  6. Authorisation of payroll and individual pay advice is obtained in accordance with organisational requirements
  7. Payroll records are produced, checked and stored in accordance with organisational policy and security procedures
  1. Handle payroll enquiries
  2. Payroll enquiries are responded to in accordance with organisational and legislative requirements
  3. Information is provided in accordance with organisational and legislative requirements
  4. Enquiries outside area of responsibility/knowledge are referred to designated person/s for resolution
  5. Additional information or follow up action is completed within designated timelines in accordance with organisational policies and procedures
  1. Maintain payroll
  2. All information and record keeping relating to the payroll function is maintained in accordance with relevant legislation and regulations
  3. Month-end and year-end checklists are produced and reconciled to ensure compliance with relevant legislative and management deadlines
  4. Records and systems are updated in line with salary reviews and other changes in employment status
  5. Back up and disaster recovery systems are put in place
  6. Payroll reports are generated and distributed in line with organisational policy
  7. Business Activity Statement data is extracted and applied in accordance with relevant legislation and regulations

Part A: Written (Questions and Answer)

  1. What information should the payroll officer collect before processing an employee’s first payroll? Determine where this information would be sourced
  1. Who completes a TFN declaration and what is the purpose of this form?
  1. An employee believes that they have been incorrectly taxed. What steps would you take to determine whether this is in fact the case?

  1. Should more that one person be capable of processing payroll? Support your answer.
  1. Where would you go to source information about awards? List 3 awards that you have sourced including the full title, the date of application and whether the award is state or federal.
  1. What is an employee deduction? Give three examples of employee deductions.

  1. What is an employee allowance? Give three examples of employee allowances.
  1. List four common pay period cycles.
  1. The next payroll is due to be processed on Christmas Day. Write a memo to all staff explaining the situation and when the payroll will be processed. (Who makes the decision)?
  1. A payroll system can be computerised. True of False?
  1. List five variations to a regular pay
  1. List four legislative requirements relating to payroll
  1. What information is reflected on a payslip?
  1. What is ‘Payroll Data’?
  1. List three processes that should be implemented to ensure the security of payroll data?
  1. What is the form called that a business periodically uses to advise the ATO of Gross Wages and Salaries and PAYG withheld? What are the labels for Gross Wages and Salaries, and PAYG withheld?
  1. How can a superannuation fund be checked to see if it is a compliant fund?

  1. What are the due dates for the Superannuation Guarantee Charge to be remitted?
  1. Once total payments have been calculated for a pay period, how and why can these payments be checked or queried?
  1. Prepare a policy for your business outlining the organisational policies and security procedures that are to be adhered to.
  1. Produce a checklist that the bookkeeper may use to ensure relevant processes are completed, accounts reconciled and reports printed. The checklist will include checks for end of month, end of quarter and end of financial year.
  1. Detail the process of salary or performance review. What records and systems are updated as a result of such a review?
  1. List three detail changes in regards to employees that would require employee records to be updated.
  1. List three people who require access to the payroll data and/or reports. For each of these people, list what information would be useful and beneficial.
  1. The bookkeeper realises that he/she is missing Suzy Smith’s timesheet, and is certain that Suzy has hours worked this pay period. Explain the steps the bookkeeper should or should not do in regards to Suzy’s payment.

Part B: Practical Exercise/Evidence

Case Study

At Pete’s Pet Shop, all full-time and permanent part-time employees accrue holiday leave (4 weeks per year pro rata) and personal leave (10 days per year pro rata). When the fulltime and part-time employees take holiday leave, they are entitled to holiday loading of 17.5%. Full-time staff work 38 hours per week.

Pete also pays superannuation for his employees if they earn over the threshold of $450.00 in a calendar month.

Using the information below, the timesheets and the latest ATO tax tables;

you are to process the weekly payroll for the month of June 2008 (Week commencing 2nd June, 2008)

you are to accrue annual leave and personal leave where applicable

you are to prepare weekly payroll reports for Management

you are to prepare a Superannuation by Fund Report for the month of June, 2008

you are to prepare a report to show only the liability balance for CSA for the month of June, 2008

you are to prepare an Instalment Activity for the month of June 2008 including supporting documentation

you are to prepare a Paid Off Time List showing the leave liability in hours and dollars after you have processed all payroll for the month of June, 2008

you are to prepare an Employee Contact List to include hire date for each employee

You should use the QuickBooks data file “Pete’s Pet Shop.qbw” and the file “Pete’s Pet Shop Timesheets.pdf” to determine the hours worked in June 2008 and to successfully complete this task.

You will also need to provide evidence that you have sourced the legislative requirements and checked the manual calculations of this payroll.

This could be in the form of a bibliography, printed tax tables or printed web pages.

Notes:

The bare minimum of employee data has been entered into QuickBooks. You will need to update information in the employee records.

In QuickBooks, Salary Sacrifice requires two payroll items to calculate correctly on reports and INB Payment Summaries. One payroll item is a deduction and the other is a Company Contribution.

All workings are to be handed in for assessment, i.e. data files, reports and reference.

Leave accrued up to the beginning of June, 2008 (in hours):

Employee Name / Personal Leave / Holiday Leave
Billy Boast / 100 / 200
Cathy Cruiser / 120 / 180
Debbie Dunlop / 80 / 260
Emily Everton / 60 / 100
Georgie Gilmore / 100 / 90
Harry Hammond / 70 / 120

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Employee Number / Employee Name / Hire Date / Date of Birth / Hour rate or Annual salary / FT = Full Time
PT = Part Time
C = Casual / Time and 1/2 / Car Allowance / CSA Deduction / Tax File Number / Tax Free Threshold / HELP Debt / Superannuation Fund / Salary Sacrifice
1 / Annie Appleby / 01/07/07 / 17/12/94 / $15 per hour / C / No / No / No / 987654321 / No / No / AMP / No
2 / Billy Boast / 01/07/07 / 15/02/90 / $20 per hour / PT / Yes / No / No / 987654321 / Yes / No / AMP / $50 per week
3 / Cathy Cruiser / 01/07/07 / 07/03/80 / $61,360 per annum / FT / No / No / No / 987654321 / Yes / Yes / AMP / No
4 / Debbie Dunlop / 01/07/07 / 13/10/70 / $40,000 per annum / FT / No / $100 per week / No / 987654321 / Yes / Yes / AMP / $100 per week
5 / Emily Everton / 01/07/07 / 06/06/85 / $25 per hour / FT / Yes / No / $60 per week / 987654321 / Yes / No / ARF / No
6 / Frankie Fuller / 01/07/07 / 12/08/45 / $18 per hour / C / No / No / No / 987654321 / Yes / No / ARF / No
7 / Georgie Gilmore / 01/07/07 / 17/04/75 / $22 per hour / PT / Yes / No / No / 987654321 / No / No / HOST / No
8 / Harry Hammond / 01/07/07 / 10/06/52 / $30 per hour / PT / Yes / No / $75 per week / 987654321 / Yes / Yes / HOST / No

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Part C: Observation Checklist

Element / Performance Criteria / C or NYC
Record payroll data / Payroll system is checked and set up if necessary to ensure that employee data is included
Payroll data is checked and discrepancies are clarified with designated person/s
Employee pay period details, deductions and allowances are entered in payroll system in accordance with source data
Payment due to individual employees is calculated to reflect standard pay and variations in accordance with employee source data
Prepare payroll / Payroll is prepared within designated timelines in accordance with organisational policies and procedures
Employee entitlements are calculated, recorded and reconciled in accordance with legislative requirements
Total payments for pay period are reconciled, and irregularities are checked and corrected, or referred to designated person/s for resolution
Arrangements for payment are made in accordance with organisational and individual requirements
Authorisation of payroll and individual pay advice is obtained in accordance with organisational requirements
Payroll records are produced, checked and stored in accordance with organisational policy and security procedures
Handle payroll enquiries / Payroll enquiries are responded to in accordance with organisational and legislative requirements
Information is provided in accordance with organisational and legislative requirements
Enquiries outside area of responsibility/knowledge are referred to designated person/s for resolution
Additional information or follow up action is completed within designated timelines in accordance with organisational policies and procedures
Maintain payroll / All information and record keeping relating to the payroll function is maintained in accordance with relevant legislation and regulations
Month-end and year-end checklists are produced and reconciled to ensure compliance with relevant legislative and management deadlines
Records and systems are updated in line with salary reviews and other changes in employment status
Back up and disaster recovery systems are put in place
Payroll reports are generated and distributed in line with organisational policy
Business Activity Statement data is extracted and applied in accordance with relevant legislation and regulations

Observer’s Name:______

Observer’s Signature :______

Dated:______
Part D: 3rd Party Verification

Observation / Reference / Element / Performance Criteria
This is to certify that ______has provided my company with:
  • Record payroll data
  • Prepare payroll
  • Handle payroll enquiries
  • Maintain payroll
Signed: ______
Name: ______
Dated: ______/ 1
2
3
4 / ALL
ALL
ALL
ALL

Part E: Outcome

Assessment Matrix

Element of Competency / C/NYC / Detail if NYC
  1. Record payroll data

  1. Prepare payroll

  1. Handle payroll enquiries

  1. Maintain payroll

Learner is □ Competent□ Not Yet Competent

Trainer DetailsName:______

Signature:______

Date:______

Assessor DetailsName:______

Signature:______

Date:______

Further action / strategies if learner is Not Yet Competent

______

______

______

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