Unit of competency Outline

Date retreived
22/07/2026 8:56 AM AWST

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Establish and maintain a payroll system

Establish and maintain a payroll system

Unit of competency
National Code
FNSBKG405A
State Code
D4073
TGA Status
Replaced
DTWD Status
Replaced
Current Release Number
1.00
Current Release Date
24/11/2010
View on TGA
State Implementation and Classification
Approved Date
07/03/2012
Field of Education
080101 - Accounting
Original Release Date
07/03/2012
Nominal Hours
35
Description
This unit describes the performance outcomes, skills and knowledge required to record and prepare payroll documentation, deal with enquiries in regard to payroll, and process payroll from provided data in manual or computerised payroll systems.This unit has application to a variety of financial services sectors. It is applicable to individuals working within enterprises and job roles subject to licensing, legislative, regulatory or certification requirements, including various aspects of taxation law (including, but not limited to, the Income Tax Assessment Act 1936 and the Income Tax Assessment Act 1997), other relevant legislation and Goods and Services Tax (GST) rulings.The Tax Practitioner's Board (TPB) administers specific educational and experience requirements for registration of BAS agents and sets specific assessment requirements that must be met.The varying Commonwealth, State or Territory requirements should be confirmed with the relevant body.
Notes
Elements and Performance Criteria
1. Record payroll data
  • 1.1. Payroll system is checked and set up if necessary to ensure that employee data is included
  • 1.2. Payroll data is checked and discrepancies are clarified with designated persons
  • 1.3. Employee pay period details, deductions and allowances are entered in payroll system in accordance with source data
  • 1.4. Payment due to individual employees is calculated to reflect standard pay and variations in accordance with employee source data
2. Payroll preparation
  • 2.1. Payroll preparation takes place within designated timelines in accordance with organisational policies and procedures
  • 2.2. Employee entitlements are calculated, recorded and reconciled in accordance with legislative requirements
  • 2.3. Total payments for pay period are reconciled, and irregularities are checked and corrected, or referred to designated persons for resolution
  • 2.4. Arrangements for payment are made in accordance with organisational and individual requirements
  • 2.5. Authorisation of payroll and individual pay advice is obtained in accordance with organisational requirements
  • 2.6. Payroll records are produced, checked and stored in accordance with organisational policy and security procedures
3. Handle payroll enquiries
  • 3.1. Payroll enquiries are responded to in accordance with organisational and legislative requirements
  • 3.2. Information is provided in accordance with organisational and legislative requirements
  • 3.3. Enquiries outside area of responsibility or knowledge are referred to designated persons for resolution
  • 3.4. Additional information or follow-up action is completed within designated timelines in accordance with organisational policies and procedures
4. Maintain payroll
  • 4.1. All information and record keeping relating to the payroll function is maintained in accordance with relevant legislation and regulations
  • 4.2. Month-end and year-end checklists are produced and reconciled to ensure compliance with relevant legislative and management deadlines
  • 4.3. Records and systems are updated in line with salary reviews and other changes in employment status
  • 4.4. Back-up and disaster recovery systems are put in place
  • 4.5. Payroll reports are generated and distributed in line with organisational policy
  • 4.6. Business Activity Statement (BAS) data is extracted and applied in accordance with relevant legislation and regulations
RANGE STATEMENT
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.
Payroll system may be:
computerised
manual.
Employee data includes:
allowances
deductions
employee details
leave entitlements
pay periods
rates of pay
superannuation details
tax declaration forms
tax file number.
Designated persons may include:
immediate supervisor
those who have the authority to approve payroll decisions.
Pay period details may include:
bonus
casual wage
commission
contract
piecework
salary
wage.
Deductions and allowances may include:
car allowance
health insurance
income tax
meal allowance
superannuation contributions
travel allowance
union dues.
Source data may include:
employee earnings and payroll register
employee record and history
employee timesheets.
Variations may include:
holiday loading
long service leave
rates of pay
overtime
paid leave
sick leave
taxation
unpaid leave.
Payroll preparation must include:
calculation of gross pay
cash analysis
electronic funds transfer
net pay
preparing pay advice slips
preparing cheques
superannuation
taxation and other deductions.
Employee entitlements may include:
annual leave provisions
child support
deductions
long service leave provisions
maternity/paternity leave provisions
sick leave provisions
study leave provisions
superannuation
workers compensation.
Legislative requirements must include:
Australian Tax Office regulations such as:
Australian Business Number (ABN)
Employment Declaration
Tax File Number (TFN) Declaration
TPB requirements, including:
registration requirements for BAS agents
Code of Professional Conduct
confidentiality and security of records
HELP
Medicare levy
payroll tax
ATO Pay As You Go (PAYG) withholding tax laws.
Australian Bureau of Statistics (ABS) Act 1975
ATO Fringe Benefits Tax laws
ATO Superannuation Laws
Tax Agent Services Act 2009 (TASA 2009)
industry Awards
Commonwealth
State and Territory
individual employment contracts
leave Acts: annual, sick and long service (Commonwealth, State and Territory)
payroll tax laws
Privacy Act 1988
workers compensation and occupational health and safety (OHS) Acts and regulations.
Legislative requirements relating to record keeping must include:
Australian Bureau of Statistics (ABS) Act 1975
ATO Fringe Benefits Tax laws
ATO Pay As You Go (PAYG) withholding tax laws.
ATO Superannuation Laws
Tax Agent Services Act 2009
industry Awards
Commonwealth
State and Territory
individual employment contracts
leave Acts: annual, sick and long service (Commonwealth, State and Territory)
payroll tax laws
Privacy Act 1988
workers compensation and occupational health and safety (OHS) Acts and regulations.
Payroll records must include:
cash analysis sheets
electronic funds transfer
employee summary report
end of month reports
end of year reports
pay advice slips
payment summaries
taxation reports.
Payroll enquiries may include:
email
face-to-face
fax
telephone.
Payroll reports may include:
financial reports
human resources reports
other management reports.
EVIDENCE GUIDE
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 ability to:
interpret and apply relevant legislative requirements
calculate and input data into payroll systems
comply with organisational guidelines relating to security and confidentiality of information.

Context of and specific resources for assessment
Assessment must ensure:
competency is demonstrated in the context of the financial services work environment and conditions specified in the range statement either in a relevant workplace or a closely simulated work environment
access to and the use of a range of common office equipment, technology, software and consumables
access to workplace reference materials such as procedural manuals and company policy
access to actual or simulated payroll data.

Method of assessment
A range of assessment methods should be used to assess practical skills and knowledge. The following examples, in combination, are appropriate for this unit:
evaluating an integrated activity which combines the elements of competency for the unit or a cluster of related units of competency
oral or written questioning on underpinning knowledge and skills
setting and reviewing workplace projects and business simulations or scenarios
evaluating samples of work
accessing and validating third party reports.

Assessment methods approved by the Tax Practitioners Board must be met for BAS agent registration.
Guidance information for assessment
If undertaking this unit for BAS agent registration,the following items listed in the Range Statement must be assessed to be considered by the TPB as having fulfilled some of the educational requirements for registration:
Payroll preparation
Legislative requirements
Legislative (requirements) relating to record keeping
Payroll records.
Replaces
State Code National Code Title Type
C9642 FNSBKPG405A Establish and maintain a payroll system Unit of competency
Replaced By
State Code National Code Title Type
AUQ71 FNSBKG405 Establish and maintain a payroll system Unit of competency