BSBFIA302 Process Payroll User Guide Second Edition · 1-925782-75-2. BSBFIA302 Process Payroll User Guide Second Edition . ISBN: 978-Part Number: 522UG . Version: V20.1. AUTHOR –

1-925782-75-2

BSBFIA302

Process Payroll User Guide

Second Edition ISBN: 978-

Part Number: 522UG

Version: V20.1

AUTHOR – Kerryn Maguire

Kerryn has worked with accounting software products for over twenty years. Originally working from 1994 as an accountant with small business when accounting software became mainstream. Kerryn then focused on providing consulting and training services to small business in particular. Expanding from this into to providing curriculum based resources to TAFE and private RTOs. From this she established Microstar Publishing and more recently incorporated Learner Link to provide a Xero resources for the Accounting and Business Services Certificate courses. Kerryn has a long association with many TAFEs and RTOs across Australia.

Kerryn’s fundamental aim is to provide resources that are easy to understand while providing a practical application of skills acquired.

Kerryn also co-authors two titles for Cambridge University Press which are in their 4th Edition – first published in 2000.

Kerryn has considerable experience and knowledge: Bachelor of Applied Science Mathematics

Diploma of Education

Graduate Diploma of Accounting

CRI: Criterion Referenced Instruction

Member of Institute of Certified Bookkeepers

Member of VELG

Reproduction and Communication for educational purposes The Australian Copyright Act 1968 (the Act) allows a maximum of one chapter or 10% of the pages of this publication, whichever is greater, to be reproduced and/or communicated by any educational institution for its educational purposes provided that the educational institution (or the body that administers it) has given remuneration notice to the Copyright Agency Limited (CAL) under the Act. For details of the CAL license for educational institutions contact:

Copyright Agency Limited Level 15 233 Castlereagh Street Sydney NSW 2000 Telephone: (02) 9394 7600 Facsimile: (02) 9394 7601 Email: [email protected]

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All Rights Reserved

© Copyright 2019 Learner Link Version 20.01 Xero

No part of the contents of this book may be reproduced or transmitted in any form or by any means without

the written permission of Learner Link. All registered trademarks, or service marks of their respective owners.

While care has been taken in the preparation of this Training Tool, Learner Link, the developer does not

accept any liability for any damage or loss (including indirect and consequential loss) incurred by any person

because of relying on the information contained in this material. This tool should not be regarded as

professional advice and it should not be relied upon in any important matter without obtaining appropriate

advice relevant to your situation.

It is the Registered Training Organisation’s responsibility to validate the mapping of this tool to the

performance criteria.

Trademarks and Acknowledgements

All terms or products mentioned in this manual that are known to be trademarks have been acknowledged.

Learner Link cannot attest to the accuracy of this information. Use of a term in this manual should not be

regarded as affecting the validity of any trademark.

Software Description

This course has been designed for users of Xero as at December 2019.

The case study in this material uses fictional information.

Xero Learn Content Partner

Kerryn Maguire of Maguire Printing Pty Ltd is a content partner to Xero Learn. Learner Link is a registered

business of Maguire Printing Pty Ltd.

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Contents

© Copyright 2019 Learner Link i

Contents Unit 1 Introduction ............................................................... 1

Purpose of this User Guide ....................................................... 1

Prerequisites ....................................................................... 1

Delivery ............................................................................ 2

Relationship to Competency Standards ........................................ 2

Organisation of this User Guide ................................................. 3

What you will need ................................................................ 3

Conventions used in this User Guide ............................................ 4

Symbols used in this User Guide ................................................. 5

Download Student Data Files .................................................... 6

Access your organisation ......................................................... 7

Check Organisation Details ....................................................... 9

Change User Role to Payroll Admin ............................................ 12

Invite a New User ................................................................. 13

Unit 2 Payroll Legislation and Requirements ........................... 15

Overview ........................................................................... 15

Fair Work .......................................................................... 16

Fair Work Act 2009 ............................................................... 18

New Employment Agreements (after March 2008) .......................... 22

National Employment Standards (NES) ........................................ 23

Award Modernisation ............................................................. 25

Bookkeepers Code of Conduct .................................................. 25

Payroll Tax ........................................................................ 26

Rights and obligations of an employee ........................................ 26

Employee Information ........................................................... 28

Tax File Numbers ................................................................. 28

Completing a Tax File Number Declaration - Employer ..................... 30

Employer obligations ............................................................. 31

Summary of employer obligations covered in this unit ..................... 38

Work Health and Safety ......................................................... 39

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Review of Payroll Legislation ................................................... 40

Research – Employee Agreements ............................................. 43

PAYG Withholding ................................................................ 47

Paid Parental Leave .............................................................. 48

Eligibility to work in Australia .................................................. 49

Superannuation Eligibility ....................................................... 49

SuperStream ...................................................................... 50

Salary Sacrifice ................................................................... 51

Reportable Employer Superannuation Contribution (RESC) ................ 52

Long Service Leave ............................................................... 53

Lump Sum Payments ............................................................. 55

Terminations ...................................................................... 55

Reference sites ................................................................... 58

Unit 3 Setting up Payroll ................................................... 61

About C Change Design .......................................................... 62

The Clerks Private Sector Award 2010 ........................................ 65

Set Up Payroll Accounts in Xero ................................................ 66

Set Pay Calendar ................................................................. 68

Apply a Holiday Group ........................................................... 70

Set Up Pay Items ................................................................. 71

Set up Time and Quarter Ordinary Times Earnings .......................... 74

Add Expense Accounts to Chart of Accounts ................................. 76

Add an Earnings Allowance Pay Item: Car Allowance ....................... 78

Add an Earnings Allowance Pay Item: Meal Allowance ..................... 80

Add a Taxable Earnings Allowance Pay Item: First Aid Allowance ........ 81

Determining what to set in an Allowance .................................... 83

Setting up an Allowance taxable but exempt from Super: eg Tools ..... 84

Pay Items: Deductions ........................................................... 86

Create Liability Accounts for Deductions Payable ........................... 87

Pay Items: Leave ................................................................. 91

Annual Leave Loading ........................................................... 92

Long Service Leave ............................................................... 93

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Personal Leave ................................................................... 94

Superannuation ................................................................... 95

Add a Superannuation Fund to an Organisation .............................. 96

Setting up Employees ............................................................ 98

Add Employee Details .......................................................... 101

Enter Tax Details and Leave Loading Eligibility ............................ 103

Enter Leave Entitlements ..................................................... 103

Personal Leave Entitlements .................................................. 105

Set Up Pay Template ........................................................... 108

Set Up Casual Employee Details .............................................. 116

Casual Long Service Leave Entitlements .................................... 119

Set Up Overtime Earnings for a Casual Employee ......................... 121

Unit 4 Processing Payroll .................................................. 127

Payroll Procedures ............................................................. 128

Notifiable Data Breaches Scheme ............................................ 130

Process Pay Run – Week 1 ..................................................... 131

Check Wage Manually .......................................................... 138

Payroll Reports .................................................................. 140

Leave Balances Report ......................................................... 143

Balance Sheet Report .......................................................... 144

Profit and Loss Report ......................................................... 145

Actually Pay Employees ....................................................... 146

Email Payslips ................................................................... 147

Print Payslips .................................................................... 148

Create an ABA File ............................................................. 150

Entering Employee Wage as a Spend Money Transaction ................. 151


Check Wage Manually .......................................................... 158

Process Pay Run - Week 3 ..................................................... 161

Entering Personal Leave Request ............................................ 163

Fixing an Error in Posted Pay Run ............................................ 168

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Paying an Employee Annual leave – Week 4 Pay Run ..................... 170

Conduct a Bank Reconciliation and Enter Wage Payments ............... 174

Import a Bank Statement ..................................................... 175

Create a Transaction in a Bank Reconciliation ............................. 179

Create a Bank Rule for Wage Payments ..................................... 180

Reconcile Payroll: Payroll Activity Summary Report ...................... 183

Run the General Ledger Report .............................................. 184

Run the Profit and Loss Report ............................................... 186

Run the Balance Sheet Report ................................................ 186

Payroll Employee Summary ................................................... 189

Leave Balances Report ........................................................ 190

Unit 5 Payment of Deductions Withheld ............................... 193

Run Superannuation Accrual Report ......................................... 194

Make payments to Super Funds .............................................. 196

Superannuation Guarantee – a guide for employers ...................... 199

Notes on Payment of PAYG Withholding Taxes ............................ 200

PAYG Withholding Fields on the BAS ........................................ 200

Set the PAYG Withheld Period ................................................ 203

Set up Simpler BAS ............................................................. 203

Paying the PAYG Liability to the ATO ....................................... 206

Pay Other Deductions Payable ............................................... 207

Run General Ledger Summary Report ....................................... 208

Unit 6 Process and Manage Payroll ...................................... 211

Change Employee Status from Casual to Part-time ....................... 213

Add an Extra Bank Account for wage payments ........................... 216

Add Saturday Ordinary Hours to a Fulltime employee .................... 218


Compassionate Leave .......................................................... 226


Request Compassionate Leave ............................................... 230

Add Extra Overtime ............................................................ 232


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Set up Voluntary Withholding for Sub Contractors ........................ 241

Use Spend Money to Record Withholding Payable ......................... 242

End of Month Reconciliation .................................................. 245

Run the Instalment Activity Statement and Withholding Amounts ...... 251

Pay PAYG Liability including Voluntary Withholding Amounts ........... 253

Activity: Run Reports and Pay Payroll Liabilities .......................... 254

Set up a Salaried Employee ................................................... 255

Set Salary Amount .............................................................. 256

Set up a Salary Sacrifice Payment ........................................... 258

Child Support Payments ....................................................... 259

Unit 7 Timesheets and Salaries .......................................... 265


Timesheets ...................................................................... 267

Process Pay Run – Week 10 .................................................... 271

Including Overtime in Timesheets ........................................... 272


Dealing with Leave Requests ................................................. 275


Leave for a Salaried Employee ............................................... 279

Unit 8 End of Payroll Year Procedures.................................. 283

Payment Summaries ............................................................ 284

Run Bank Reconciliation ....................................................... 286

Run Reports ..................................................................... 288

Reconcile Payroll items with General Ledger .............................. 290

Payment Summaries for Employees .......................................... 292

Finalising Payment Summaries ............................................... 297

Single Touch Payroll............................................................ 300

Setting Up Single Touch Payroll in Xero ..................................... 301

Fixing an Error in a STP Submission .......................................... 306

Finalising STP at the End of a Financial Year ............................... 308

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Reconcile Gross Earnings from STP & Tax Withheld....................... 310

End of Year Procedure ......................................................... 313

Lock Dates ....................................................................... 314

Unit 9 Payroll Exercise .................................................... 315

Appendix A: Elements of Competency and Performance Criteria ... 347

Appendix B: Solutions to Exercises ........................................ 349

Appendix C: Forms ............................................................ 373

Appendix D: Sample Agreement ............................................ 381

Appendix E: My Payroll ....................................................... 389

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Unit 2 - Payroll Legislation and Requirements

© Copyright 2019 Learner Link 15

Unit 2

Payroll Legislation and

Requirements

Overview To learn about payroll legislation, obligations and requirements, we will explore the following websites. It is not necessary to print this information, instead view, read and save the hyperlinks to your web browser Favourites.

Fair Work www.fairwork.gov.au

Australian Taxation Office www.ato.gov.au

Federal Register of Legislation www.legislation.gov.au

Institute of Certified Bookkeepers www.icb.org.au

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http://www.fairwork.gov.au/

http://www.ato.gov.au/

http://www.legislation.gov.au/

http://www.icb.org.au/


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Fair Work

@ Searching Fair Work

Let us introduce you to the large volume of payroll legislation and requirements. Find the following information:

• About Fair Work

• Conditions of employment

• Employers and employees’ obligations (including all record keeping and

pay slip obligations)

• Workplace rights

• National Employment Standards (NES).

Within these headings are several fact sheets. View as many as you can to improve your skills and knowledge of payroll.

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@ Conditions of employment

Go to www.fairwork.gov.au, select ‘How we will help’ and then ‘Templates & Guides’ to access a great deal of payroll information that you need when processing pays.

@ Searching Fair Work Ombudsman

Research who the ombudsman is and what this service can do.

@ Searching Fair Work Inspectors

What is the key role of the inspectors?

@ Workplace Relations Regulations 2006

Go to www.legislation.gov.au and search for ‘workplace relations’. Find the most recent amendments to the regulations.

1. The document ID is . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2. The document is dated . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3. Identify one change or amendment below.

..........................................................................

..........................................................................

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http://www.legislation.gov.au/



Fair Work Act 2009

On 23 March 2009, the Fair Work Bill was passed through both Houses of Parliament. The Fair Work Act received Royal Assent on 7 April 2009.

Types of agreements Under the new Fair Work Act 2009, there are three types of enterprise agreements:

1. Single-enterprise agreements made between a single employer and a group of employees. They can involve more than one employer in limited cases (e.g. where two or more employers are engaged in a joint venture).

2. Multi-enterprise agreements made between two or more employers and groups of their employees.

3. Greenfields agreements - single-enterprise and multi-enterprise agreements relating to a genuine new enterprise of the employer(s) and are made before any employees to be covered by the agreement are employed. Greenfields agreements are made with one or more relevant unions.

All of these are collective agreements.

Unions involved in bargaining for an enterprise agreement may choose to be covered by the agreement.

@ Activity: Agreements

Copies of agreements can be found on www.fairwork.gov.au

For your information, view a few agreements.

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Multi-enterprise agreement requirements

Multi-enterprise agreements can include a broad range of matters, such as:

• rates of pay

• employment conditions e.g. hours of work, meal breaks, overtime

• consultative mechanisms

• dispute resolution procedures

• deductions from wages for any purpose authorised by an employee.

They cannot, however, include unlawful content (such as discriminatory or objectionable terms).

Greenfields agreements

@ Activity: Search for ‘Greenfields agreement’.

Hint – find the Enterprise Bargaining fact sheet.

Briefly describe what a Greenfields agreement is.

.........................................................................................

.........................................................................................

.........................................................................................

Solution can be found in Appendix B

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Short list of information, rules, conditions and what is expected of employees who could be covered in an Agreement

Introduction to the business

Aim of the Agreement

Definitions, e.g.

Casual

Part-Time

Day Shift

Afternoon Shift

Working Arrangements, e.g.

Hours

Terminations

Classification Structures and required skills

Employee Obligations, e.g.

Medical requirements, for example, QFever injection

Confidentially of business information

Employment Conditions

Payment of Wages/Salaries (no rates, just conditions)

Payment of Allowances

Payment of Overtime

Timesheets

Wage/Salary increases

Superannuation – calculations, choice

Allowances

Use of employee’s car

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Leave Provisions Absence because illness, caring

Annual Recreation Leave

Holidays and Christmas Closedown

Long Service Leave

Public Holidays

Compassionate Leave

Rostered Days Off

Leave without Pay

Parental Leave

Professional Development

Professional Development available

Job Security and Managing Change

Disputes and Grievances

Managing disputes and grievances

Workplace Relations and Related Matters

Employer and employee duties

Notice of Termination

Redundancy

Stand Downs of employees

@ Activity: Information Statements

Go to www.fairwork.gov.au and search for an information statement.

Print a copy and answer the following questions:

1. Who must receive the statement?

2. From what date must this statement be given to employees?

................................................................................................

................................................................................................

................................................................................................


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Note: The information on pages 22–34 is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

New Employment Agreements (after March 2008)

From March 2008 changes to Workplace Relations legislation took effect with the introduction of new types of agreements. Australian Workplace Agreements (AWA) were superseded but existing AWA could continue to operate until they were terminated or replaced.)

From 28 March 2008 to 31 December 2009, an agreement called an ‘ITEA (Individual Transitional Employment Agreement)’ was used by employers who wanted non-union contracts. No new ITEAs may be made but existing ITEAs continue to operate until terminated.

All agreements had to meet the No-Disadvantage Test complying with the five basic entitlements set down in the Australian Fair Pay and Conditions Standard.

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National Employment Standards (NES)

The National Employment Standards cover the following matters and apply to all employers and employees under the national workplace relations system – award covered and award free.

1 Maximum weekly hours of work (38-hours)

Standard working hours for a full-time employee will continue to be 38 hours per week, plus reasonable additional hours. Reasonableness will be determined having regard to a number of listed factors, including penalty rates or other compensation for the additional hours worked and the needs of the enterprise. Rules dealing with averaging of hours will not be included. Any such rules would be dealt with in modern awards.

2 Request for flexible working arrangements

An employee who is a parent of, or has caring responsibilities for, a child under school age will be entitled to request flexible working arrangements. Flexible working arrangements are not defined, but examples could include reduced hours, different start or finish times or home-working arrangements.

3 Parental leave and related entitlements

Each parent who is an eligible employee would have a right to 24 months’ unpaid parental leave in relation to the birth or adoption of a child. However, couples will only be entitled to take up to 3 weeks’ parental leave concurrently. If both parents wish to take parental leave, the remaining periods of leave must be taken consecutively.

4 Annual leave

As is currently the case, all full-time employees will be guaranteed 4 weeks paid annual leave, with an extra week for shift workers. Part-time employees would receive a pro rata amount. Casual employees would not be entitled to annual leave.

5 Personal/Carer’s leave and compassionate leave

All full-time employees will receive 10 days paid personal and carer’s leave per year of service (pro rata for part-time employees). Employees would also be entitled to 2 days paid compassionate leave per occasion. Casual employees will not receive these entitlements. If paid leave entitlements are exhausted, all employees will be entitled to 2 days of unpaid personal leave for ‘genuine caring purposes and family emergencies’. This unpaid leave will also be available to casuals.

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6 Community service leave

Employees will be entitled to be absent from work to engage in prescribed community service activities. Examples include jury service and defined emergency service duties. The entitlement would cover all periods the employee is required to provide the community service, including reasonable travelling time and time for rest immediately following the activity. Community service leave will be unpaid leave, although employees (other than casuals) on jury service leave will be entitled to make-up pay.

7 Long service leave

Currently, state legislation deals with long service leave entitlements. The NES would preserve long service leave entitlements in an AWA or workplace agreement, or where there is no such agreement, in pre-modernised awards, NAPSAs and state or territory laws, until nationally uniform long service leave standards are attained.

8 Public holidays

Employees will be entitled to be absent from work on public holidays, and to be paid for the ordinary hours they would have worked at their base rate of pay. If an employee works on a public holiday (which may only occur at the reasonable request of the employer), they may be entitled to a penalty rate or other compensation as set out in an applicable modernised award.

9 Notice of termination and redundancy pay

As is currently the case under the Workplace Relations Act, most employees will be entitled to minimum periods of notice of termination of their employment (or pay in lieu of notice), based on their period of continuous service.

10 Fair Work Information Statement

Employers will be required to provide all new employees with a ‘Fair Work Information Statement’ as soon as practicable after they commence employment.

These standards will apply to all employees from 1 January 2010 (there are some exceptions) and will override any terms that are contained in the transitional agreements that are detrimental to the employee.

From 1 January 2010, a ‘Take Home Pay Order’ may be made. A Take Home Pay Order is where the employees wage will be less than the modernised award compared to what they were paid immediately prior to the modernised award. The Fair Work Authority may make a Take Home Pay Order to remedy the situation.

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Award Modernisation

Award modernisation aims to make a complete set of modern industry-based federal Awards that:

• are simple and easy to understand

• provide a minimum safety net of enforceable terms and conditions of employment

• are economically sustainable

• promote collective bargaining, with no provision for individual statutory agreements.

Modern awards may include terms relating to minimum wages, types of employment, when work is performed, overtime rates, penalty rates, annualised wages and salaries, allowances, leave and leave loadings, superannuation and procedures for consultation, representation and dispute settlement.

Bookkeepers Code of Conduct

Many bookkeepers and BAS Agents are members of a bookkeeping association. The Institute of Certified Bookkeepers has produced a code of professional conduct which all members must abide by.

@ Activity: Code of Conduct

Visit www.icb.org.au and select ‘Membership’ and then ‘Code of

Conduct’.

a. Download and print a copy for your information.

b. What purpose does this code of professional conduct play to members?

c. Identify three key positive behaviours an ICB member must adhere to.

Solutions can be found in Appendix B.

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http://www.icb.org.au/



Payroll Tax

Some businesses are required to pay payroll tax. Payroll tax is calculated on wages paid or payable by an employer to its employees. Each state or territory can have different requirements.

@ Activity: Before setting up Payroll Tax, you need to check the

calculation for your state.

Search Google for your state’s information (example Victoria Payroll Tax) and read about the definition of Payroll Tax, the thresholds and who should pay.

Rights and obligations of an employee

The working conditions of many jobs are governed by modern awards and the NES.

@ Activity: Search for the information regarding rights and

obligations applicable to your state.

Employees need to remember that they too have obligations to the employer.

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Unit 3 - Setting up Payroll


Unit 3

Setting up Payroll

Learning outcomes

On completion of this unit, you will be able to:

In the Chart of Accounts, check and create accounts required to process payroll

Set the payroll calendar

Set up Pay items

Set up Superannuation funds

Set up Employee Details

Make changes to employee details and payroll items

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About C Change Design

In the first part of this user guide, you will be processing the pays for employees of C Change Design. This a small business owned and operated by Charlie Fox. Charlie has two employees who assist her in running the business, Camilla Adams and Edward Green. Edward is a full-time employee while Camilla works casually when required.

Checking the Payroll year on your company file

Before processing any payroll, you should check if the organisation file you are using is using the current payroll data. When using Xero, the data entered is automatically processed with tax tables relevant to the date of the transaction. In this exercise you are working in the Financial Year 2019.

Information required for Payroll setup

Before processing any pay runs in this example, you also need to set up and enter all the payroll information for the business:

the accounts that will be used

the pay calendars i.e. are employees paid weekly, fortnightly, a combination of both, perhaps monthly.

the pay items

the employees

Bank account from which the wages are paid

Expense accounts for: Wages and salaries paid

Superannuation paid

Other expenses paid

Liability accounts for: Wages payable

Superannuation payable

PAYG Withholdings payable

Other deductions payable

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Employment rules

All employees of C Change Design are working under the Clerks – Private Sector Award 2010.

The award is included with your student files.

Please note this exercise is based on the version including amendments up to November 2018.

When you are processing payroll, you must have a copy of the relevant award or agreement on hand.

Below is an extract from the Clerks – Private Sector Award 2010. We will be using this award and looking at it while setting up the payroll for C Change Design.

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C Change Design General Conditions

C Change Design is a small business owned and operated by Charlie Fox. The primary focus of C Change Design is to consult with clients to produce design primarily for work spaces. Workspaces vary from a studio space to whole buildings. Charlie also runs design workshops for the general public.

Charlie is usually at the studio whenever it is open, but she is not included in the payroll exercise.

Charlie also engages sub-contractors to process some of the designs and conduct some workshops.

Charlie employs two people to assist her with administration and general customer service.

Edward Green Edward’s normal hours are Monday to Thursday, 8.00 am to 5 pm and 9 am to 4 pm on a Friday. Each day he has an hour break for lunch.

Camilla Adams Camilla usually works her hours in the afternoon when required. Her shifts are usually from 12 pm to 5 pm whenever Charlie requires her to work.

As part of their duties Charlie requires Edward and Camilla to use their own cars to collect and deliver designs, mail and special printing.

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The Clerks Private Sector Award 2010

A copy of this award is included with your student files. We will consider it in detail as we work the book. You may find it helpful to read through some if it, taking particular note of the following items.

Charlie’s employees can earn various allowances and conditions in relation to the following:

• Vehicle allowance

• First aid allowance

• Meal allowance

• Overtime at 1.5x or 2x the ordinary rate

• Time and a quarter, 1.25x for ordinary hours worked on a Saturday

• Double time, 2x for ordinary hours worked on a Sunday

• Annual leave loading

• Annual Leave

• Personal leave

• Compassionate leave

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Set Up Payroll Accounts in Xero

1. Click on Organisation Name Settings Payroll Settings

2. Click on Add Payroll Accounts (or Edit Payroll Accounts)

Add Payroll Accounts

Payroll Settings

Settings

Organisation Name

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As a minimum you will need separate accounts to record:

• the bank account from which the wages are paid

• the expense accounts for: Wages and salaries paid

Superannuation paid

• the liability accounts for: Wages payable

Superannuation payable

PAYG Withholdings payable

The first step is to enter the main accounts you are going to use. You will also add others as we work through the setup. In this step we will add the Wages Payable account.

1. Ensure the selected accounts are as shown in the screenshot below.

2. Click on the drop list button and click on the account to be used 824 Wages Payable - Payroll

3. Click on Save

NOTE: Xero automatically uses the current tax tables for the year you are working in.

477: Wages and Salaries 100: NAB Business 825: PAYG Withholdings Payable

478: Superannuation 826: Superannuation Payable

477: Wages and Salaries

824: Wages Payable Payroll

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Set Pay Calendar

Employees will be paid weekly by direct deposit. Make the settings as shown here for Weekly pay, Start date is July 2 2018, First Payment Date is July 9 2018.

1. Click on the Calendars tab in the Payroll Settings window

2. Click on Add

3. Click on the drop list button for Pay Period and click on Weekly

4. Leave the name as simply Weekly (you could modify if you had various weekly type payments)

5. Click on the Calendar icon for the Start Date

6. Use the Back and Forward button as required and click on the starting date 2 July 2018

Calendars

Add

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7. Click on the Calendar icon for the First Payment Date

8. Use the Back and Forward button as required and click on the first payment date 9 July 2018

9. Click on Add

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Apply a Holiday Group

1. Click on the Holidays tab

2. Click on New South Wales

The standard public holidays are listed. This helps you in assigning days to annual leave accurately. For example, if an employee works 5 days a week, Monday to Friday and takes a week’s annual leave but a public holiday falls on one of those, ANZAC Day on a Thursday for example, then the employee only uses 4 days annual leave.

Also in practice in your local area you may have other Public holidays such as Race Days or local Community days.

You may also want to delete a holiday listed in the set below – e.g. Bank Holiday on Monday 5. Aug 2019 (just click on Cross beside it to delete then click on Delete again to confirm) if it does not apply to your employees.

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Set Up Pay Items: Check Ordinary Hours

There are many Pay Items already set up. You can modify these and add your own. Pay items include earnings, allowances, deductions and leave.

1. Click on the Pay Items tab in the Payroll Settings window

This tab is divided in four types of Pay Items: Earnings, Deductions, Reimbursements and Leave.

2. Check that Earnings is displayed

3. Click on Ordinary Hours to view the settings for the standard pay for a full time or part time worker.

This step is important for reporting on the BAS, IAS and STP.

4. Click on the box Reportable at W1 on …

5. Click on Save

Earnings

Ordinary Hours

Reportable as W1

Pay Items

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Add Pay Item: Overtime 1.5

In this section you will add a new Earnings Item – Overtime Hours 1.5. Overtime earnings are not included in Superannuation calculations or annual leave accrual. You will see that as each item is set up you can make settings here about Superannuation, leave accrual and PAYG calculations.

6. Check you are on the Pay Items tab of the Payroll tab

7. Click on the button Add Overtime Earnings

8. In Earnings Name type Overtime 1.5

9. In Display Name type Overtime 1.5

10. Click on Rate Type and click on Multiple of employee’s …

11. Click on Multiple and type 1.5

12. Click on Expense Account and click on 477: Wages and Salaries

13. Click on the two check boxes Exempt from Super and Reportable as W1 on Activity Statement

14. Check the details for this new item and then click on Add

Add

Overtime Earnings

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15. Click on the button Add Overtime Earnings

16. Add the settings below for the Earnings of Overtime 2.0

17. Click on Add when finished

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Set up Time and a quarter Ordinary Times Earnings

According to the Clerk Modern Award 2010 any employee who works during hours considered normal working hours on a Saturday that is not overtime but part of their 38 working week will be paid at one and quarter their normal hourly rate (or 25% loading).

This is different to overtime in that it is a higher payment for working on a Saturday. The employee is receiving a Penalty payment. The rate will be slightly higher. The other important factor here is that the hours worked are Ordinary Times Earnings so are still included in Superannuation, Annual and Personal Leave accrual calculations i.e. they are NOT Exempt.

1. Check you are on the Pay Items tab of the Payroll tab with Earnings selected

2. Click on Add Ordinary Time Earnings

Add

Ordinary Time Earnings

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3. Make the following settings then click on Add

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Add Expense Accounts to Chart of Accounts

Before we go any further, we will add the expense accounts that will highlight the amounts spent on allowances for each of Car allowance, Meal allowance and First Aid allowance. Using separate accounts provides more detailed information when reporting.

1. Click on tab Accounting Chart of accounts

2. Scroll down the list to the Wages and Salaries account and check for any expense accounts already available – you should see the accounts 477 Wages and Salaries and 478 Superannuation are already available.

3. Scroll back up and click on Add Account

4. Click on Account Type and click on Expense

5. Click into the Code box and type 479

6. Click into Name and type Car allowances

7. Click into Description and type Employee car allowances as part of salaries and wages

8. Click on the Tax drop list button and click on BAS Excluded

9. Click on Save

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10. Repeat steps 3 to 9 on the previous page to add these two accounts for Meal Allowance and First Aid Allowance

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Add an Earnings Allowance Pay Item: Car Allowance

Allowances are things like a Meal Allowance, Car Allowance, First Aid Allowance, Shift Allowance.

1. Click on the Organisation Name Settings Payroll settings

2. Click on the Pay Items tab if it is not selected

3. Click on Add Allowance

4. Click on the Type drop list button and click on Car – Cents per … (This is to do with Single Touch Payroll and reporting – it will be explained in more detail later)

5. Click into Earnings Name and type Car Allowance

6. Click into Display Name and type Car Allowance

The Commissioner of Taxation determines the rate for cents per kilometre. In the 2018-19 financial year the rate is 68c irrespective of the engine size of the car. Payments are exempt from PAYG. Employers can pay more than this rate but must withhold tax from any amount above 68c (unless the higher rate is part of an award) or employees may have a tax liability when they lodge their tax return. Claims are capped at 5000km per year.

Add

Allowance

Pay Items

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The amount of the allowance must be shown separately in the accounting records. The amount is therefore NOT simply allocated to the Wages and Salaries account; it will be allocated to the Car allowances expense account that you created in the previous section.

The amount set in the Clerks – Private Sector Award 2010 is 78c per km.

7. Click on the Rate Type drop list button and click on Rate per Unit

8. Click into Type of Units and type Kms

9. Click into Rate per Unit and type 0.78 to change the rate to 78c per km as set by the award.

10. Click on Expense Account, scroll down and click on 479: Car allowances

For the purposes of this exercise we will treat this rate as the rate set by the ATO. The payment is exempt from PAYG and Super.

In practice you would have to tax the 10 cents ie 78c is 10c in excess of 68c.

11. Click on the Exempt from PAYG Withholding so a tick appears

12. Click on Exempt from Superannuation … so a tick appears

Car allowance payments are NOT reportable on W1 of the Activity Statement so leave this box blank.

13. Click on Add

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Add an Earnings Allowance Pay Item: Meal Allowance

According to the Clerks award an employee is entitled to either a meal or a meal allowance if they have to work 2 hours or more overtime without appropriate notice. The meal allowance is $15.45. Because it is a Meal Allowance that is part of an award it is not included in wages for PAYG purposes, tax is not withheld, and it is not included in Superannuation calculations. (See ATO for clarification)

1. Click on the Pay Items tab if it is not selected

2. Click on Add Allowance

3. Click on Type and click on Meals … (required for STP)

4. Type Meal Allowance in the Earnings Name and Display Name

5. Click on the Rate Type drop list button and click on Rate per Unit

6. Type Meals in Type of Units

7. Click into Rate per Unit and type 15.45 to set the rate

8. Click on Expense Account, scroll down and click on 480: Meal Allowance

As this is an award payment the whole amount is exempt from PAYG and Super and NOT reportable at W1.

9. Click on the Exempt from PAYG Withholding so a tick appears

10. Click on Exempt from Superannuation … so a tick appears

11. Click on Add

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Unit 4 - Processing Payroll


Unit 4

Processing Payroll

Learning outcomes


• check payroll data and timesheets

• process pays for full time employees

• process pays for casual employees

• enter personal and annual leave

• correct an error in a pay run

• enter wage payments using Spend Money

• enter wage payments during a bank reconciliation

• run and print payroll reports

• reconcile payroll with accounting reports

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Payroll Procedures C Change Design

Preparing payroll within designated timelines

Pay details (timesheets) must be submitted to the supervisor/relevant payroll person to allow time for checking prior to processing payroll.

Employees have a set payday; therefore, the person responsible for payroll must always set aside a time, e.g. Monday morning to process pays.

Payroll security

Wages and salaries are a major expense for businesses, and steps must be taken to ensure that theft or fraud does not occur. Security measures in this business include:

Completion of timesheets is supervised to ensure each employee completes their own and no one else’s.

All payroll documents are kept under lock and key and only the person responsible for payroll and management have access to records.

If possible, the person who prepares the payroll should not be the person who collects or distributes cash wages to employees.

The cash wages, cheques, ListPay or electronic funds procedure may require authorisation by the supervisor.

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Payroll files

All payroll documentation should be kept in a locked filing draw so that personal information is not available to other employees.

The following files should be kept:

A file for each employee in which to store Tax File Number Declaration, superannuation forms and personal information

A file for payroll reports for each pay run

A file for each superannuation fund and payment documentation

A file for each deduction payable, e.g. Cancer Council donation

A file for Awards, Agreements, pay rates, etc.

A file for WorkCover documentation.

Payroll confidentiality

Employees could work under different awards and conditions. Disclosure of pay details is prohibited. Disclosures can cause disharmony among employees, especially if some feel that they are receiving a lower wage than others who they consider to be working at a decreased capacity.

The bookkeeper must be aware of the contents of the Privacy Act 1988 in relation to the storage and security of personal information.

@ Go to www.oaic.gov.au and find the page about the Privacy Act 1988. Save this page in your web browser Favourites for future reference.

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http://www.oaic.gov.au/



The Notifiable Data Breaches Scheme

From 22 February 2018, the Privacy Amendment (Notifiable Data Breaches) Act 2017 established the Notifiable Data Breaches (NDB) scheme. The NDB scheme applies to all agencies and organisations with existing personal information security obligations under the Australian Privacy Act 1988.

The NDB scheme introduces an obligation to notify individuals whose personal information is involved in a data breach that is likely to result in serious harm. This notification must include recommendations about the step’s individuals should take in response to the breach. The Australian Information Commissioner must also be notified of eligible data breaches. The OAIC has provided comprehensive information about the NDB scheme at www.oaic.gov.au/privacy-law/privacy-act/notifiable-data-breaches-scheme.

Exercise: Recap

In the following exercise you will pay the employees weekly. C Change Design employs the following personnel:

Edward Green Customer service Full-time employee 38-hour week

Camilla Adams Customer service Casual – 10 to 20 hours per week

C Change Design is a small business owned and operated by Charlie Fox. The primary focus of C Change Design is to consult with clients to produce design primarily for work spaces. Workspaces vary from a studio space to whole buildings. Charlie also runs design workshops for the general public.

Charlie is usually at the studio whenever it is open, but she is not included in the payroll exercise.

Charlie also engages sub-contractors to process some of the designs and conduct some workshops.

As part of their duties Charlie requires Edward and Camilla to use their own cars to collect and deliver designs, mail and special printing.

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https://www.legislation.gov.au/Details/C2017A00012

http://www.oaic.gov.au/privacy-law/privacy-act/notifiable-data-breaches-scheme

http://www.oaic.gov.au/privacy-law/privacy-act/notifiable-data-breaches-scheme



Process Pay Run – Week 1 – ending 8 July 2018

Edward has submitted the following timesheet. He has worked his normal hours. He has also used his car to do work for the studio and has entered the Kms on each day.

Edward is also entitled to a First Aid Allowance.

Timesheet Employee: Edward Green

Week ending date: 8/7/2018

Day Start time

Finish time

Meal break Total Ord

time 1.5 2 Other Meal Kms

Monday 8 am 5 pm 1 hr 8 8 Tuesday 8 am 5 pm 1 hr 8 8 12 Wednesday 8 am 5 pm 1 hr 8 8 Thursday 8 am 5 pm 1 hr 8 8 8 Friday 9am 4 pm 1 hr 6 6 Saturday Sunday

Total Hours (to nearest 15 minutes) 38 20

Notes First Aid Allowance

Employee Certification: I certify that the above hours are correct, no injuries have been sustained, my job description has not changed. I also understand wages will not be paid unless this timesheet has been authorised by a supervisor and received by the Payroll manager on time.

Employee Signature:

Supervisor Certification: I verify that the hours on this timesheet are correct.

Please ask your supervisor to approve the payment of this timesheet

Supervisor Signature:

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Camilla has submitted the following timesheet. She works various hours as required by Charlie. Camilla sometimes uses her car to do work for the studio but did not perform any of these duties this week. Because she has worked 5 or less hours in each shift, she did not take a meal break.

Timesheet Employee: Camilla Adams

Week ending date: 8/7/2018

Day Start time

Finish time



Monday 12 pm 4 pm 4 4 Tuesday Wednesday 12 pm 5 pm 5 5 Thursday 2 pm 5 pm 3 3 Friday 1 pm 4 pm 3 3 Saturday Sunday

Total Hours (to nearest 15 minutes) 15

Notes


Employee Signature:




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You have done most of the hard work in setting up the Pay Templates.

1. Click on the tab Payroll Pay employees

You may see a notice regarding Single Touch Payroll. We will come back to that later.

2. Click on Remind me later

3. Click on the + Add Pay Run button

4. The next scheduled pay run date will appear – which in our case is 8 July 2018 – click on Next

+ Add Pay Run

Payroll

Pay employees

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Our two employees appear. You will notice that the full wage is already calculated for Edward. Camilla’s earnings are currently 0.00 because we did not enter any standard hours in her pay template because she is casual her hours change from week to week. The -7.00 net pay is because of the deductions for the Cancer Council and the Social Club.

Let’s check Edward Green first.

5. Click anywhere on his row in the employee list to open his pay template with details filled in for this week.

The normal wage applies for Edward this week except for adding 20 kms travelled for work to pick up some stock.

6. Check that the figures match those in the screenshot on the following page and then click Save.

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Check that Annual Leave, Personal Leave and Long Service

Leave are accruing correctly.

Enter 20 Kms here

Check 38 hours here

Check First Aid is 1

Check 10 entered for Cancer Council

Check 5 entered for Social Club

Check Super is entered and calculated

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You may have noticed at the top of the screen in the Weeks payroll summary that the total payment is currently $7 less than Edward’s payment. This is because Camilla is currently -$7. Let’s enter her wage so it makes more sense.

Camilla worked 15 hours this week.

7. Click on the Employee drop list button above Edward’s name

8. Click on Camilla

9. Click into the Hours box for Ordinary hours and type 15 then press the TAB key to set

Enter 15 hours here

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Check that there is no Annual Leave and Personal Leave

accruing, only Long Service Leave

Check 2 entered for Cancer Council

Check 5 entered for Social Club

Check Super is entered – it is not calculating anything at the moment as the threshold of

$450 earnings per month has not yet been reached.

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Checking the accuracy of Camilla’s pay before recording

Let’s check these figures manually to ensure that the payroll for Camilla has been set up correctly.

Complete the pay slip below manually and check your figures against the amounts on your screen.

Pay Camilla Adams Week ending 8 Jul 2018

Gross Wages

Base Hourly - 15 hours x $29.10 per hour

Less Deductions

PAYG Withholding

(No Tax-free threshold column – column 3)

-$108.00

Cancer Council Donation

Social Club

Net Wages

3. Click on Save to accept the payroll details.


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4. Click on the link to the pay run Week ending 08… to return to the summary

5. Notice the Status at the moment is Draft

6. Click on Post Pay Run – this makes the required entries into the journals

7. Click on Yes to the Prompt – the Status will change to Posted

We will look at reports on the next page.

Link to the Summary

Post Pay Run

Status

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Payroll reports

How do you find the Pay Run to do specific reports for that pay run?

1. Click on Payroll Overview

2. Click on Pay Runs to display a list of Pay Runs – ignore the screen message that there are no pay runs. We only have one at the moment

3. Click on the Pay run you want to run reports for

4. Click on the View Reports button at the base of the summary

5. Click on Pay Run Journal

Pay Runs

Pay Run Journal

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A new tab will open in your browser with the report.

6. Click on the previous browser tab to return to the Xero window and the Pay Run

7. Click on the View Reports button again and click on Payslips

A new tab will open with a page for each employee displaying their full payslip.

Look through the payslip and check for any errors. For example – incorrect hours, incorrect or missing deductions, accruing leave for a casual employee, if superannuation is missing check why.

8. Click on the previous tab to return to the Xero window and the Pay Run

9. Click on View Reports Payroll Employee Summary

10. Click on the Xero tab to return to the Xero window and the Pay Run

11. Click on View Reports Payroll Activity Details

Xero tab Report tab

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Leave Balances Report

Other payroll and accounting reports are located in the Reports area of Xero.

1. Click on the tab Accounting Reports

2. Scroll down to Payroll

3. Click on Leave Balances

4. Click on Update – Edward has annual leave, personal leave and long service leave accrued and Camilla just long service leave.

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Balance Sheet Report

1. Click on tab Accounting Reports

2. Click on Balance Sheet in the Financial section

3. Click on the Date drop list button and use the backward or forward button to find 31 July 2018 and click on it – or just type in 31/7/18 and press the TAB key

4. Click on Update

5. View the figures under the ‘Liabilities’ heading to check the totals for the highlighted accounts

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Profit and Loss Report

1. Click on tab Accounting Reports

2. Click on Profit and Loss in the Financial section

3. Set the date range from 1 Jul 2018 to 31 Jul 2018

4. Click on Update

5. View the figures under the ‘Operating Expenses’ heading to check the totals for payroll accounts

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Actually Pay Employees

So, you have posted the pay run, checked all entries and if required received authorisation. Now you are ready to actually pay the employees. You can do this using a batch payment via your bank or you can pay each employee separately using cash, cheque or individual online payments by direct deposit.

You can email payslips directly to the employee if an email address is entered in their Employee details.

1. Click on Payroll Employees

2. Click on Edward Green

3. Click on the tab Details if it is not selected

4. Scroll down and click into the Email box and type your own email address – you will be able to see what is received – in practice you would put the employees email address here.

5. Click on Save

Email

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Unit 7 - Timesheets and Salaries


Unit 7

Timesheets and Salaries

Learning outcomes


calculate hours worked from a timesheet in accordance with terms of employment

enter Timesheets in Xero

Enter Leave requests and adjust timesheets

Enter a Leave request for a Salaried employee

Keeping time and wage records

Unit 2 contains a list of records that must be kept by a business for each employee as set out in the Workplace Relations Regulations 2006. A list of payslip requirements is also specified in the Regulations.

The business could use the any of the following to record start/finish times and hours worked if required:

Time Book where employees sign in and out

Timesheet

Time clock using punch cards, swipe cards or finger print activated.

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Process Pay Run – Week 9 – ending 02 Sep 2018

Camilla’s hours this week are close to the normal with just the extra use of her car.


Week ending date: 2 Sep 2018

Day Start time

Finish time



Monday 12 pm 5 pm 5 5 10 Tuesday 12 pm 5 pm 5 5 10 Wednesday 8 am 5 pm 1 hour 8 8 17 Thursday 12 pm 5 pm 5 5 10 Friday 8 am 4 pm 1 hour 7 7 12 Saturday Sunday


Notes


Employee Signature:

Supervisor Certification: I verify that the hours on this timesheet are correct. Sam

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+ Add Timesheet

Enter Employee Hours in a Timesheet

1. Click on tab Payroll Timesheets

2. Click on + Add Timesheet

3. Click on Employee and click on Camilla Adams

4. Click on Period and click on Week ending 02 Sep 2018 (the next week)

5. Click on Save

6. Enter the Earning Rate Ordinary Hours

7. Enter the hours worked each day – it should add to a total of 30 hours

8. Click on Approve

9. Click on Close – these hours will feed through into Camilla’s Pay Template

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Add Pay Run

1. Click on tab Payroll Pay Employees

2. Click on + Add Pay Run

3. Click on Next

So, we have some data already entered in to each employees’ pay template. However, we will check Edward’s pay and enter the kms for the Car Allowance for Camilla.

4. Click on Edward Green

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You can view here how a Salary earner’s wage is calculated. Also the effect of Salary Sacrifice.

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5. Click on Save and Close to return to the Employee List

6. Click on Camilla’s line to display her pay

7. Enter her Kms from the manual timesheet

8. Click on Save and Close

9. Post the Pay Run

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Process Pay Run – Week 10 – ending 09 Sep 2018

Charlie held another event on the weekend. Camilla’s hours this week are extensive as she worked on Sunday to assist Charlie at the special event. There was also some overtime on Friday due to time spent doing set up for the event.



Day Start time

Finish time



Monday 12 pm 5 pm 5 5 10 Tuesday 12 pm 5 pm 5 5 10 Wednesday 8 am 5 pm 1 hour 8 8 12 Thursday 12 pm 5 pm 5 5 10 Friday 8 am 4 pm 1 hour 7 7 12 4 pm 6 pm 2 2 Saturday Sunday 9 am 4.30 pm 30 mins 7 7

Total Hours (to nearest 15 minutes) 30 2 7 54

Notes


Employee Signature:




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Enter Employee Hours including Overtime in a Timesheet

1. Click on tab Payroll Timesheets + Add Timesheet


3. Click on Period and click on Week ending 09 Sep 2018 (the next week) then Save

4. Click on the Earnings Rate box and click on Ordinary Hours

5. Enter the Ordinary hours worked each day – it should add to 30 hours

6. Click on + Add another line

7. Click on the Earnings Rate box and click on Overtime 1.5

8. Click the box for the day that Camilla worked 2 hours at time and half and enter the hours

9. Click on + Add another line

10. Click on the Earnings Rate box and click on Overtime 2.0

11. Click the box for Sunday and enter the number of hours that Camilla worked double time

12. Check your entries match the manual timesheet

13. Click on Approve then Close

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Add a Pay Run

1. Click on tab Payroll Pay Employees

2. Click on + Add Pay Run

3. Click on Next

So again, we have some data already entered in to each employees’ pay template. However, we will check Edward’s pay and enter the kms for the Car Allowance for Camilla.

4. Open Camilla’s Pay template and check the Ordinary and Overtime Hours entered

5. Enter the Kms she travelled and Save and Close

6. Post the Pay Run

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Process Pay Run - Week 11 - ending 16 Sept 2018

Entering Leave and Timesheets

So far it has been straight forward entering the hours for Camilla. But what happens if Camilla takes leave. In the week ending 16 Sep 2018 Camilla has two sick days requiring Personal Leave.



Day Start time

Finish time



Monday 12 pm 5 pm 5 5 10 Tuesday 12 pm 5 pm Personal Leave 5 5 Wednesday 8 am 5 pm Personal Leave 8 8 Thursday 12 pm 5 pm 5 5 10 Friday 8 am 4 pm 1 hour 7 7 12 Saturday Sunday


Notes


Employee Signature:




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Create Leave Request

We know from Camilla’s timesheet how many hours she would normally have worked on the two sick days.

1. Check Camilla’s manual time sheet – how many hours would she usually work on the days she took leave

2. Click on tab Payroll Leave

3. Click on the New Leave request button

4. Click on the Search box and select the employee – in this case Camilla.

5. Select Personal/Carer’s Leave and enter a Description

6. Set the start date to 11 Sep 2018 and end date to 12 Sep 2018

7. Enter 13 hours for those two days

Note: Camilla is taking more personal leave than she has accrued. Xero

allows an employee to have a negative leave balance.

8. Click Approve

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Now to enter the hours into the timesheet.

1. Click on tab Payroll Timesheets + Add Timesheet


3. Click on Period and click on Week ending 16 Sep 2018 then Save

4. Click on the Earnings Rate box and click on Ordinary Hours

5. Enter the Ordinary hours worked each day – DO NOT include the days taken for Personal Leave

6. Click on Approve

Now let’s enter the pay run:

8. Click on the tab Payroll Pay Employees

9. Click on Add Pay Run and Next to the prompt

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10. Click on Camilla and check the details that have fed through from her timesheet and from the Personal Leave request

11. All that is to be done now is add in the kms travelled

12. Check all your entries then Save and Close

13. Edward had another standard week

14. Post the Pay Run

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Process Pay Run - Week 12 - ending 23 Sep 2018

Entering Leave

Camilla has applied for a day’s annual leave so she can attend a family wedding. The date of the leave is Friday 21 September. The same week Edward is ill on the Wednesday.



Day Start time

Finish time



Monday 12 pm 5 pm 5 5 8 Tuesday 12 pm 5 pm 5 5 7 Wednesday 8 am 5 pm 8 8 10 Thursday 12 pm 5 pm 5 5 7 Friday 8 am 4 pm Annual Leave 7 7 Saturday Sunday


Notes


Employee Signature:




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Request Annual Leave for an Hourly Employee


2. Click on New Leave Request

3. Enter the dates and the number of hours Camilla would normally work on that day

4. Click on Approve

Request Personal Leave for a Salaried Employee

Leave for Salary workers is requested in the same way. The difference is that an average of weekly hours is entered for the day or days for the length of the leave. A full-time week is 38 hours. Divide 38 by 5 to give 7.6 hours per day.


6. Click on New Leave

7. Select Edward and enter the description and dates. Check that 7.6 has been entered for the hours for the day

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Now add the pay run for this week. Add the ordinary hours and car allowance for Camilla. Edward’s remaining hours were as normal. Note in Edward’s pay template that the Personal/Carer’s Leave has appeared, and the weekly Ordinary hours have been adjusted.

9. Post the Pay Run

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Appendix A - BSBFIA302 Elements of Competency and Performance Criteria


Appendix A

BSBFIA302 Elements of Competency and

Performance Criteria

Element Performance Criteria Reference

1 Record payroll data

1.1 Check payroll data and clarify discrepancies with designated person/s.

Unit 3

1.2 Enter employee pay period details and any deductions and allowances in payroll system in accordance with source documents.

Units 2 & 3

1.3 Calculate payments due to individual employees to reflect standard pay and variations in accordance with employee source data.

Unit 3

2 Prepare payroll

2.1 Prepare payroll within designated timelines in accordance with organisational policy and procedures.

Units 4, 6, 7 & 9

2.2 Reconcile total wages for pay period, check or correct irregularities or refer to designated persons for resolution

Units 4, 6, 8 & 9

2.3 Make arrangements for payment in accordance with organisational and individual requirements.

Units 4, 5, 6, 8 & 9

2.4 Obtain authorisation of payroll and individual pay advice in accordance with organisational requirements.

Units 4, 5, 6, 7, 8 & 9

2.5 Produce, check and store payroll records in accordance with organisational policy and security procedures.

Units 4, 5, 6, 8 & 9

2.6 Follow security procedures for processing payroll and maintaining payroll records.

Units 2, 3, 4, 6, 7, 8, & 9

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Appendix A - BSBFIA302 Elements of Competency and Performance Criteria


3 Handle payroll enquiries

3.1 Respond to payroll enquiries in accordance with organisational and legislative requirements. Units 4, 6, 7 & 9

3.2 Provide information in accordance with organisational and legislative requirements

Units 2, 4, 5, 8 & 9

3.3 Ensure all enquiries outside area of responsibility and knowledge are referred to designated persons for resolution.

Units 3, 5, 6 & 8

3.4 Complete additional information or follow-up action within designated timelines in accordance with organisational policy and procedures.

Units 4, 6, 7 & 9

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BSBFIA302 Process Payroll User Guide Second Edition · 1-925782-75-2. BSBFIA302 Process Payroll User Guide Second Edition . ISBN: 978-Part Number: 522UG . Version: V20.1. AUTHOR –

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