FNS40211– Certificate IV in Bookkeeping
FNSBKG405A - Establish and maintain a payroll system
Table of Contents
INSTRUCTION TO STUDENTS: 3
UNIT DESCRIPTOR: 3
PREREQUISITE: 3
PURPOSE OF ASSESSMENT 3
COMPETENCY/SUBMISSION DETAILS 3
RE-ASSESSMENT 4
REASONABLE ADJUSTMENTS: 4
SKILLS REQUIRED 4
KNOWLEDGE REQUIRED 5
CRITICAL ASPECTS 5
LEARNING RESOURCES: 5
Instruction to Students:
This Learner Guide / Student Assessment Workbook for FNSBKG405A - Establish and maintain a payroll system contain details of your assessment works and the guidelines for you to be able to complete the requirements of unit of competency.
Unit Descriptor:
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.
Prerequisite:
There is no pre-requisite for this unit.
Purpose of Assessment
To evaluate the candidate’s ability to demonstrate the knowledge and skill 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.
An assessment is the process of gathering and judging evidence in order to decide whether has achieved a standard or objective and it is a competency based assessment. The competency-based assessment is the method of gathering and judging of evidence in order to decide whether you achieved a standard of competency.
Successfully completion of assessments will contribute to the attainment of the following unit of competency:
FNSBKG405A - Establish and maintain a payroll system
Competency/Submission Details
For you to achieve competency in this unit, you are required to complete the following tasks and submit on the due date specified in your Training Plans. You must achieve satisfactory ratings on all tasks. Your Assessment Task must be submitted in print – out form.
Task Number Method of Assessment Venue of Assessment Due Date
Task 1 Case Study ZIE Onsite Final week of the term
Task 2 Written Questions ZIE Onsite Final Week of the term
Task 3 Project ZIE Onsite Final Week of the term
At each submission of your Assessment Task, you are to fill up the Assessment Cover Sheet and ensure that it is completely and accurately filled up. The Trainer / Assessor or Zarah Institute of Education (ZIE) representative will provide you with submission receipt to evidence that you have handed over your Assessment Task.
Upon completion of the Unit Assessments, the Trainer/Assessor will mark the Assessment Tasks and accomplish a Unit Result Summary Sheet to record the result and feedback. Your Trainer/ Assessor will discuss these with you and thereafter you will be asked to sign the declaration to evidence the feedback session.
Re-assessment
If the result of your Unit Assessment is “Not yet Competent (NYC)”, you will be given an opportunity for re-assessment. You will only work on the component/s of the Task/s that were marked “Not satisfactory”. The re-assessment must be completed within one (1) the study period. Please note that ZIE will provide two (2) chances for re-assessment at no cost.
Should you not able to achieve competency with all of these opportunities, you are required to repeat the unit at your own cost which will also impact on your extension of study period.
Reasonable Adjustments:
If you have special needs or disabilities, reasonable adjustment will be organised in accordance with the Special Needs / Disabilities Policy and Procedure of ZIE.
This may include but not limited to:
• Visual difficulty, we can assist by making adjustments such as larger print of documents and assessment tools and forms
• Physical disabilities, assessment may be broken down into shorter/longer lengths of time, where applicable
• Sick or have medical condition, due date extension may be provided
Skills Required
The required skills for you to demonstrate competency in this unit are:
• communication skills to:
• build relationships, determine and confirm work requirements, using questioning and active listening as required
• liaise with others, share information, listen and understand
• use language and concepts appropriate to cultural differences
• numeracy skills for calculating gross and net pay, comparing differing rates of pay over a given time span of the same nature, preparing cash analysis sheets and reconciling figures
• IT skills for accessing and using appropriate software such as spreadsheets and databases and using internet information
• analysis skills for accessing, interpreting and managing relevant financial data
• literacy skills to understand the organisation's financial policies and procedures and legislative procedures, write cheque or salary authorisations, prepare pay advice slips and maintain records
• self-management skills for complying with ethical, legal and procedural requirements
• problem solving skills to for reconciling figures and resolving employee enquiries within scope of own responsibility
• organisational skills, including the ability to plan and sequence work
Knowledge Required
The required knowledge for you to demonstrate competency in this unit are:
• award and enterprise agreements and relevant industrial instruments
• organisational policies and procedures
• relevant industry codes of practice
• relevant legislation from all levels of government that affects business operation, especially in regard to:
• occupational health and safety
• environmental issues
• equal opportunity
• industrial relations
• anti-discrimination
• taxation related to payroll activities
• structure of authority in organisations
• types of manual and computerised payroll systems
Critical Aspects
To achieve the competency in this unit, you must submit and demonstrate the knowledge and skill of the following evidence:
• interpret and apply relevant legislative requirements
• calculate and input data into payroll systems
• comply with organisational guidelines relating to security and confidentiality of information.
Learning Resources:
1. Small Print learner Book
2. ZIE student theory Book
3. PowerPoint Presentation provided ZIE
For additional/general resources, please refer to the Training & Assessment strategy or ZIE training and assessment Resource list which can be accessed from the website and /or student handbook.

Assessment Task 1 – Case Study
? You must complete this task correctly to demonstrate competency in this unit.
Part A
A2Z Financial Services processes its payroll weekly. You are required to complete the payroll register for the week ending 30 June 2014. The payroll week ends on a Sunday. The payroll is prepared on Monday. The employees are paid by cheque. The cheques are distributed on the day the payroll is prepared.
Employee History Cards
Employee Name Employee Name Employee Name
Lucy John Tracey
Hourly rate $30
Tax offsets $2910
Tax - free threshold yes
Weekly deductions
Superannuation $60
Medical $70
Union $10 Hourly rate $24
Tax - free threshold yes
Weekly deductions
Superannuation $50
Medical $48
Union Nill Hourly rate $36
HELP yes
Tax - free threshold yes
Weekly deductions
Superannuation Nil
Medical Nil
Union $10
Additional Information
Over is paid at time and a half on all hours in excess of 35 per week.
Details of hours worked for week ended 30 June 2014 are:
Lucy 42 Hours
John 40 Hours
Tracey 30 Hours 8 Hours Sick leave
Lucy will be taking for weeks’ annual leave, so her pay will include annual leave pay (plus a 17.5% annual leave loading). She has not previously taken annual leave in the current financial year.
All employees receive a travelling allowance of $100 per week. This allowance is not taxed and is not paid while an employee is on leave.
All employees have provided a tax file number.
All employees are Australian residents and have claimed the tax-free threshold.
Part B
Prepare the Payroll Journal (including totals) for the following:
1. B Smith grossed $950.00 (Production) and paid $171.00 PAYG.
2. R Brown grossed $550.00 (Production), $400.00 (Maintenance), and paid $171.00 PAYG.
3. P Green grossed $550.00 (Production) and $61.00 PAYG.
4. M White grossed $250.00 (Administration), $400.00 (Sundry) and paid $104.00 PAYG.
5. T Green grossed $650.00 (Administration) and paid $104.00 PAYG.
6. R Jones grossed $950.00 (Production) and paid $171.00 PAYG.
7. The employees were paid cash. The cash was obtained using cheque 235693.
Use the Payroll Journal provided below to complete your work and submit your answer for assessment.
Payroll Journal
Payroll distribution to General Ledger Accounts
Employee Date 6011–Prod wages (Dr) 6012–Admin Wages (Dr) 6013–Sundry Wages (Dr) 6014–Maint Wages (Dr) 2030–PAYG holding (Cr) 1000–Cash at bank (Cr) Cheque
26/5/14
26/5/14
26/5/14
26/5/14
26/5/14
26/5/14
Assessment Task 2 – Written Questions
? You must complete this task correctly to demonstrate competency in this unit.
Q1: In a payroll system, what records and information need to be kept for each employee? Discuss.
Q2: What should you do to handle a dispute that arises from a payroll enquiry?
Q3: What are some of the deductions or allowances that can be applied during payroll processing? Give three examples of each.
Q4: What payroll information is required to extract from the payroll system/s by the Payroll officer to complete Business Activity Statement (BAS)?
Q5: What records are likely to be changed due to salary or performance reviews and other employment status changes?
Q6: Produce a checklist that the bookkeeper may use to ensure relevant processes are completed and reconciled. What sort of items would appear on an end of month, end of quarter and an end of financial year checklist?
Q7: What should you do to handle a dispute that arises from a payroll enquiry?
Q8: Detail the variety of back-up types that can be used to restore a payroll system so that the organization can recover from disaster?
Q9: How many systems can be used to generate payroll reports? Write a brief description of each system?
Q10: If a payroll enquiry is outside the area of responsibility or knowledge, what should you do?
Q11: List four legislative requirements for handling payroll enquiries?
Q12. Calculate the net pay for Jane Smith earned $1530. She has claimed tax offsets totaling $2325. She is not entitled to annual leave loading. She also has a HELP debt.
Q13: Outline the timeframes to provide additional information or complete a follow-up action?
Q14: Explain the following terms:
Awards
Leave Loading
PAYG Withholding Tax
HELP Debt
Superannuation
Payroll Data
Assessment Task 3 – Project
? You must complete this task correctly to demonstrate competency in this unit.
Smith solution is a rapidly growing medical distribution company on the North Shore. They encompass a strong values and ethics to make a positive difference in the community. Off the back of an extremely strong sales force, they have managed a great deal of success. This has created the need for a new payroll officer and they are looking for a payroll officer to join their busy team.
You will work closely with the payroll Manager and be responsible for:
• issuing employee paychecks,
• recording leaves of absence,
• verifying number of hours worked,
• Updating and maintaining payroll records,
• Compliance with organizational policies, and guidelines and procedures,
• Assisting the payroll Manager in month-end reporting and consolidation.
In this assessment task, you will be required to research and prepare a detailed evaluation of the position of payroll officer.
Your evaluation will include;
? Who is a payroll officer?
? What does a payroll officer do?
? What skills are expected for the role of payroll officer?
? What knowledge (including relevant legislations) is expected for the role of payroll officer?
? Code of conduct and ethical requirements?
You may research the information on the internet, specifically in job descriptions for payroll officer. Please give reference of the link of your research to avoid plagiarism.