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Establish and maintain a payroll system

Unit Descriptor This unit describes the performance outcomes, skills and knowledge required to process payroll from provided data in manual or computerised payroll systems. This unit is related to BSBADM505A Manage payroll and BSBADM308A Process payroll.

1 . Record payroll data
  1. Payroll system is checked and set up if necessary to ensure that employee data is included

  2. Payroll data is checked and discrepancies are clarified with designated person/s

  3. Employee pay period details, deductions and allowances are entered in payroll system in accordance with source data

  4. Payment due to individual employees is calculated to reflect standard pay and variations in accordance with employee source data

2 . Prepare payroll
  1. Payrollis prepared within designated timelines in accordance with organisational policies and procedures

  2. Employee entitlements are calculated, recorded and reconciled in accordance with legislative requirements

  3. Total payments for pay period are reconciled, and irregularities are checked and corrected, or referred to designated person/s for resolution

  4. Arrangements for payment are made in accordance with organisational and individual requirements

  5. Authorisation of payroll and individual pay advice is obtained in accordance with organisational requirements

  6. Payroll records are produced, checked and stored in accordance with organisational policy and security procedures

  7. Security procedures records are followed

3 . Handle payroll enquiries
  1. Payroll enquiries are responded to in accordance with organisational and legislative requirements

  2. Information is provided in accordance with organisational and legislative requirements

  3. Enquiries outside area of responsibility/knowledge are referred to designated person/s for resolution

  4. Additional information or follow-up action is completed within designated timelines in accordance with organisational policies and procedures

4 . Maintain payroll
  1. All information and record keeping relating to the payroll function is maintained in accordance with relevant legislation and regulations

  2. Month-end and year-end checklists are produced and reconciled to ensure compliance with relevant legislative and management deadlines

  3. Records and systems are updated in line with salary reviews and other changes in employment status

  4. Back up and disaster recovery systems are put in place

  5. Payroll reports are generated and distributed in line with organisational policy

  6. Business Activity Statement data is extracted and applied in accordance with relevant legislation and regulations

Key CompetencyExamples of ApplicationPerformance
How can information be collected, analysed and organised?
How are ideas and information communicated within this competency?
How are activities planned and organised?
How are problem solving skills applied?
How are mathematical ideas and techniques used?
How is use of technology applied?
How is team work used within this competency?

Range Statement

Payroll system may be:

Employee data will include, but is not limited to:

Designated person/s may include:

Pay period details may include:

Deductions and allowances may include:

Source data may include:

Variations may include:

Payroll preparation may include:

Employee entitlements may include:

Legislative requirements may include:

Legislative and regulatory requirements relating to record keeping may include:

Payroll records may include:

Payroll enquiries may include:

Payroll reports may include:

Evidence Guide

Critical aspects for assessment and evidence required to demonstrate competency in this unit

Evidence of the following is essential:

Context of and specific resources for assessment

Assessment must ensure:

Method of assessment

A range of assessment methods should be used to assess practical skills and knowledge. The following examples are appropriate for this unit:

Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended, for example with any other unit/s in the same qualification.