Assessment AT1 Outcomes Guidelines
In order to make a learner competent, assessor needs to consider a variety of evidences and outcomes from the assessment tasks. Competency is given to a learner based on assessor’s judgement of work submitted by learner to meet assessment specification as well as the assessor’s judgement/observation of learners’ class participation & underpinning knowledge demonstrated. Assessor may wish to keep following criteria in mind while assessing a student.
Outcomes
Is candidate been able to demonstrate following (Full or partial) criteria?
Submit a planning document with steps to establish payroll system?
Submit three policy and procedures documents referred to in plan:
? security of employee payroll information
? substantiation of claims for allowances
? one other policy and procedures document to support financial control or the safeguarding of resources?
Submit a one page reflection?
Complete assessment within agreed deadline?
Performance indicators
Is candidate been able to demonstrate following (Full or partial) criteria?
Establish systems to ensure that statutory obligations are met and records are kept for the period determined by government legislation?
? Plan to establish system clearly contains elements pertaining to survey of legal requirements and steps to ensure they are met such as development of policy and procedures.
? Plan includes establishment of record-keeping policy and procedures.
? Reflection refers to specific legislation which steps in plan are designed to cover and explains how legislation is covered by steps. Reflection should refer to most or all of the following:
? Privacy Act 1988 (Cwlth)
? Australian Securities and Investments Commission Act 2001 (Cwlth)
? Corporations Act 2001 (Cwlth)
? A New Tax System (Goods and Services Tax Administration) Act 1999 (Cwlth)
? A New Tax System (Goods and Services Tax) Act 1999 (Cwlth)
? Income Tax Assessment Act 1997 (Cwlth)
? Superannuation Guarantee (Administration) Act 1992 (Cwlth)
? Fair Work Act 2009 (Cwlth)
? AASB accounting standards.
Establish security procedures that ensure the confidentiality and security of payroll information?
? Policy and procedures clear, logical and follow consistent format for ease of use.
? Reference to specific applicable legislation such as Privacy Act 1988, Anti-discrimination legislation.
? Reflection describes how procedures will ensure confidentiality and security requirements (and all other legislative requirements) are met.
Establish control measures to safeguard organisation’s financial resources in accordance with legislative and organisational requirements?
? Policy and procedures clear, logical and follow consistent format for ease of use.
? Reference to specific applicable legislation or standards such as AASB Accounting Standards, ATO regulations, Corporations Act 2001, etc.
? Reflection describes how procedures will ensure control of financial resources, minimisation of risk and how any relevant legal and organisational requirements are met.
Ensure procedures guarantee substantiation of claims for allowances?
? Policy and procedures clear, logical and follow consistent format for ease of use.
? Reference to specific applicable legislation or standards such as AASB Accounting Standards and accurate recording of expenses, ATO regulations such as regarding FBT liability, for example, Corporations Act 2001 to ensure fair, accurate financial statements, etc.
? Procedures may include, for example:
? Documentation of motor vehicle/motor vehicle expenses:
– motor vehicle registration
– log of motor vehicle running costs (registration, fuel costs, and maintenance costs)
– receipts for all expenses.
? Documentation of mobile phone expenses:
– two recent phone accounts substantiating greater than 50% business use
– statutory declaration declaring that the business use of the mobile phone in the future will be greater than 50%.
? Reflection describes how procedures meet legislative requirements.

Instructions for Students AT1: Establish the payroll system
Submission details
Student’s name ID no.
Assessor’s name Phone no.
Assessment date/s Time/s
The assessment task is due on the date specified by your assessor. Any variations to this arrangement must be approved in writing by your assessor.
Submit this document with any required evidence attached. See specifications below for details. The assessment task is due on the date specified by your assessor. Any variations to this arrangement must be approved in writing by your assessor.
Submit this document with any required evidence attached. See specifications below for details.
Performance objective
The candidate will demonstrate the ability to establish procedures for the management of payroll.
Assessment description
In response to the scenario provided, you will develop a step-by-step plan to establish a payroll system, develop security procedures, establish control measures, and ensure procedures guarantee substantiation of claims for allowances.
Procedure
1. Consider the scenario and task provided.
2. Consider the design of a payroll system to cover organisational and legislative requirements.
3. Prepare a planning document in which you outline steps you would take to establish the payroll system. Your plan must include a step-by-step description of review, design, development and implementation. Include:
a. a survey of legal environment
b. The development of policies and procedures (refer specifically to those three developed in steps 4–5 of this procedure.
c. Communication/consultation.
4. Write a Payroll Policy and Procedures document to
a. ensure confidentiality and security of employee payroll information. Include reference to relevant legislation.
b. ensure substantiation of claims for allowances. Include reference to relevant legislation.
c. safeguard organization’s financial resources. Include reference to relevant legislation or standards.
You can refer to Page No. 102 of your student workbook as well as http://www.fsu.uts.edu.au/procedures/payroll-procedures.pdf for the sample policies and procedures.
5. Write a one page reflection on the process of designing the payroll system.
a. Describe how both organisational and legislative requirements are met by each step of your proposed plan.
b. Describe how policy and procedures documents are designed to ensure all legislative and organisational requirements are met.
c. Describe how records will be kept for the period determined by government legislation.
6. Submit all documents required in the specifications below to your assessor. Ensure you keep a copy of all work submitted for your records.
Knowledge Test
7. explain following key provisions of relevant legislation, standards, regulations and codes of practice that may affect aspects of payroll operations: (Minimum 50 words each)
a. Australian Taxation Office regulations
b. anti discrimination legislation
c. ethical principles
d. codes of practice
e. financial legislation
f. privacy laws
g. relevant industrial awards
h. other relevant government and statutory bodies in relation to payroll
i. superannuation guarantee
Specifications
You must submit:
? planning document with steps to establish payroll system
? three policy and procedures documents referred to in plan
? one page reflection.
Your assessor will be looking for:
? literacy skills to write detailed instructions
? knowledge of key provisions of relevant legislation from all forms of government, standards, regulations and codes that may affect aspects of business operations, such as:
? knowledge of organisational policies and procedures across the full range of tasks required by payroll processes.
Scenario: Pitstop Pty Ltd
Pitstop is a privately owned retail and fuel service company that until recently operated four independent service stations/stores in Melbourne’s north. The company has recently expanded to 13 service stations across Victoria.
The owner, chairman and CEO, Jim Murphy, has run the company for the past five years. He has operated service stations for most of the last 25 years and relies on his hands-on approach to operations.
Pitstop stores trade 6 am–11 pm daily. They typically include a vehicle access forecourt with at least six pump stations, a retail shop, a food bar, store manager’s office and stockroom. They sell fuel, oil, gas, supermarket goods, hot pies (heated from frozen on the premises) and cold drinks.
For the financial year 2011–2012, Pitstop is projected to have an annual turnover of $9,000,000 and generate a profit of $3,000,000. Payroll expense is projected to be $3,000,000. The organisation uses a computerised accounting system: MYOB AccountRight.
Pitstop organisational structure
The flagship Pitstop store in Brunswick, Victoria has an attached office space that accommodates head office (the directors, senior management staff and clerical employees).

Task
In the past eight months, Pitstop has raised sufficient finance to buy out the Independent Service Station (ISS) chain of nine stores and rebrand them all as Pitstop service stations. Jim Murphy plans to continue the expansion until the optimum target of 30 services stations is secured for the Victorian market.
Including the retained staff from the buyout stores, Pitstop now has a workforce of approximately 70 employees. The employees come from a wide range of cultural and linguistic backgrounds. A significant proportion has poor English literacy, including poor reading comprehension. Most employees, but not all, have a high-school level of education.
Previously, with less than 20 employees to pay, Jim and his Finance and Operations Manager, Jack Tan, ran a cash-based payroll system for the four stores. Because of expansion plans across Victoria, the payroll system is inadequate and will need to be completely redesigned. Jim has employed you, as an independent contractor, to design a new payroll system for the organisation. He has the following key requirements:
? pay, which was weekly, will now be fortnightly
? a separate payroll register should be prepared for each of the stores
? pay will be checked and reconciled by each store and then rechecked, reconciled, authorised and disbursed by head office
? the payroll system in all stores will be identical
? the payroll system should be scalable: as new stores are added the payroll system will simply be duplicated
? records will be kept at stores and duplicates will stored at head office
? all legislative requirements must be met by the new system.
You will need to plan a payroll system to meet Jim’s requirements. Prepare a planning document in which you outline steps you would take to establish the payroll system at Pitstop.
To support your plan, Jim has also asked you to provide samples of three policies and procedures documents:
? security of employee payroll information
? substantiation of claims for allowances
? one other policy and procedures document to support financial control or the safeguarding of resources.
Finally, Jim has asked you to prepare a written document describing how both organisational and all legislative requirements are met by each step of your proposed plan. Describe how policy and procedures documents are designed to ensure legislative and organisational requirements.