FNSBKG405 Establish and maintain a payroll system

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