You will demonstrate your skills and knowledge by completing a scenario-based project.
Task overview and context
You receive an email from Aziz Singh, Finance Manager.
Subject: Temporary move to the finance department
Due to recent growth within the IT team, the financial operations department has been under extreme pressure in getting the payroll checked and salaries and wages authorised within organisational time frames – especially with the end of financial year only two weeks away. I understand that you have some previous experience in managing payrolls so I have requested that you temporarily move to the financial operations department to assist me until we are able to find a suitable applicant to fill the role of Payroll Assistant. Your first task will be to implement three new staff members into the payroll system and reconcile their wages, taking into account ATO requirements and deductions and ensuring that all payments are dispatched to government authorities accurately and in accordance with legislative requirements. I have included the necessary information about the new staff members below. Please document all processes into a report to assist in the training and recruitment of the Payroll Assistant. This information will be used as part of the finance department’s induction process. You will need to access the Australian Taxation Office website to assist you in some of the payroll tasks. I have provided details of what to include in the report in the ‘Instructions to the candidate’ section that follows. I look forward to having you on board and thank you in advance for your valued assistance at this time.
Information about the new staff members
The IT department has employed three new staff members. Please manage the payroll for these three staff. BizOps Enterprises pays full-time staff $19.38 per hour, with overtime paid at time and a quarter on weekdays and time and a half on weekends. Part-time staff are paid $23.46 per hour on weekdays, with overtime paid at time and a fifth on weekdays and time and a quarter on weekends. Casual staff are paid $32.39 per hour as a flat rate.
Task overview and context
Weekly time sheet
- Tax withholding deductions for each staff member
- 9% of any wages for which the Superannuation Guarantee Charge (SGC) applies
- Sasha makes a 17% personal contribution to her superannuation each month
- Sasha makes a 10% health fund deduction per week
- Sasha pays union fees of $29.47 per week
- Milan makes a $25 personal contribution towards his superannuation per week
- Milan makes a 13% health fund deduction per month
- Milan makes a childcare payment of $75 per week
- Arna pays union fees of $47.98 per month
- Arna makes a Centrelink payment of $23.67 per week
Instructions to the candidate
You will need to access and read the following BizOps Enterprises policies, procedures and templates:
- Payroll information and procedures
- Information management procedures
- Salary payment authorisation form
See the ‘Resources required’ section for how to access these documents.
Complete the following tasks and submit your responses as a collated report. Ensure you use a format and style suited to the context and audience, including the use of appropriate headings. Attach any supporting documents, as appropriate.
- Establish procedures for payroll management:
- a) Explain the process you used to plan, implement and evaluate routine and non-routine tasks to achieve payroll goals and time lines.
- b) Describe the control measures you undertook to safeguard BizOps’s financial resources, including the payroll details of the three new employees, in accordance with legislative and organisational requirements.
- c) Explain the statutory obligations that must be adhered to and records that must be kept for the three employees, including the specified periods determined by government legislation.
- d) Explain how to identify and interpret information from organisational policies, legislative and industry-related material.
- Prepare payroll data:
- a) Source and use nominated industrial awards, contracts and government legislation to calculate gross pay and annual salaries for the payroll of the three new employees.
- b) Calculate their statutory and voluntary deductions for the weekly pay period using government and employee documentation. Describe the process you used.
- c) Explain and prepare specific information that clearly conveys an understanding of outcomes required for the three BizOps employees.
- d) Highlight the importance of recording data accurately using relevant format, style and language suited to the context and audience. Provide an example of when you did this while managing the payroll for the three new employees.
- Authorise payment of salaries:
- a) Explain the processes or steps you undertook to check the payroll and authorise salaries and wages for payment in accordance with organisational policy and procedures.
- b) Describe the processes for dealing with salary, wage and related inquiries in accordance with organisational policy and procedures.
- c) Provide examples of documents authorising the payment of wages and salaries made to the three new employees.
- Administer salary records:
- a) Explain the steps you undertook to process declaration forms for new and existing employees in accordance with Australian Taxation Office requirements.
- b) Make the appropriate calculations and implement them to ensure work is completed according to predetermined deadlines.
- c) Provide details on how you prepared and dispatched payments for the three BizOps employees to appropriate government authorities accurately and in accordance with relevant government legislation.
- d) Explain the steps you took to ensure that you created accurate payroll management records for the three BizOps employees.
- e) Describe the process undertaken to calculate and transcribe group tax amounts and make payments in accordance with taxation procedures.
- f) Assume that the three employees will work the same hours in their second week as they did in their first, and that you have been asked to calculate their payment summary amounts from the two weeks of salary records. Explain the methods you used to prepare and reconcile their payment summaries.
- g) What data and calculations did you use to reconcile the three employees’ salaries, wages and deductions in accordance with all legislative and organisational requirements?