Unit of competency Outline

Date retreived
23/07/2026 9:41 PM AWST

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Manage payroll

Manage payroll

Unit of competency
National Code
BSBFIM502A
State Code
D0709
TGA Status
Replaced
DTWD Status
Replaced
Current Release Number
1.00
Current Release Date
10/03/2009
View on TGA
State Implementation and Classification
Approved Date
15/10/2014
Field of Education
080101 - Accounting
Original Release Date
15/10/2014
Nominal Hours
60
Description
This unit describes the performance outcomes, skills and knowledge required to establish and monitor security procedures for managing organisational payroll services and to calculate and process salary payments, group taxation and related payments.No licensing, legislative, regulatory or certification requirements apply to this unit at the time of endorsement.
Notes
Elements and Performance Criteria
1. Establish procedures for the management of payroll
  • 1.1. Establish security procedures that ensure the confidentiality and security of payroll information
  • 1.2. Ensure procedures guarantee substantiation of claims for allowances
  • 1.3. Establish control measures to safeguard organisation's financial resources in accordance with legislative and organisational requirements
  • 1.4. Establish systems to ensure that statutory obligations are met and records are kept for the period determined by government legislation
2. Prepare payroll data
  • 2.1. Use nominated industrial awards, contracts and government legislation to calculate gross pay and annual salaries
  • 2.2. Calculate statutory and voluntary deductions using government and employee documentation
  • 2.3. Provide payroll data to payroll processor for calculation within designated time lines
3. Authorise payment of salaries
  • 3.1. Check payroll, and authorise salaries and wages for payment in accordance with organisational policy and procedures
  • 3.2. Reconcile salaries, wages and deductions in accordance with organisational policy and procedures
  • 3.3. Deal with salary, wage and related enquiries in accordance with organisational policy and procedures
4. Administer salary records
  • 4.1. Process declaration forms for new and existing employees in accordance with Australian Taxation Office requirements
  • 4.2. Forward periodic deductions to nominated creditors within designated time lines
  • 4.3. Prepare and despatch payments to government authorities accurately and in accordance with the relevant government legislation
  • 4.4. Calculate and transcribe group tax amounts and make payments in accordance with taxation procedures
  • 4.5. Prepare and reconcile employee group certificate amounts from salary records
RANGE STATEMENT
The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.
Security procedures may include:
authorised access
back-up files
computer passwords
employees signing for pay
ensuring security of passwords and keys
keeping payroll documents secure
maintaining security and confidentiality of employees' details
numbering payroll registers
restricting access to electronic files and locking paper-based confidential information
separating locations of confidential information
storage of information off site
supervision of timesheets
Control measures may include:
authorisation requirements
dual checking system
internal control policies and procedures
multiple checks and balances
reconciliation of records
separation of duties
Legislative and organisational requirements may include:
Australian Accounting and Auditing Standards
Australian Securities and Investments Commission (ASIC) requirements
Australian Taxation Office regulations
corporations law
Fringe Benefits Tax (FBT)
Higher Education Contribution Scheme (HECS)
Higher Education Loan Programme (HELP)
legislation and regulations in relation to superannuation such as the Superannuation Guarantee (Administration) Act
organisational policy and procedures for cash handling
Pay As You Go (PAYG) tax
superannuation
tax file number
Nominated industrial awards, contracts and government legislation may include:
certified and workplace agreements
enterprise agreements
federal and state/territory awards
use of Wageline
Calculating gross pay and annual salaries may include:
allowances
annual leave loading
appropriate pay structure
deductions
employment history cards
FBT
FBT returns
long service leave
overtime
penalty rates
salary packaging items
salary sacrificing
sick leave
time sheets
Statutory and voluntary deductions may include:
HECS
HELP
insurance
Medicare levy
PAYG tax
payroll tax
superannuation levy
union fees
Designated time lines may include:
Australian Taxation Office time lines for submission such as group tax, fringe benefits tax
Business Activity Statement (BAS)
stipulated time period before employee departs organisation
stipulated time period before pay is due to employees
organisational time lines
Nominated creditors may include:
Australian Taxation Office
government agencies
health funds
membership organisations
those nominated as part of salary packaging
union
vehicle leasing organisations
EVIDENCE GUIDE
The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.

Overview of assessment

Critical aspects for assessment and evidence required to demonstrate competency in this unit
Evidence of the following is essential:
documenting steps undertaken to establish payroll system
using data and calculations to calculate payroll, including a range of deductions
preparing appropriate records to record payroll processing.
Context of and specific resources for assessment
Assessment must ensure:
access to office equipment and resources, such as:
Australian Accounting and Auditing Standards
calculator
certified or workplace agreements
computer equipment and relevant software
HECS/HELP documentation
organisation's accounting system
organisational contracts
paper-based or electronic payroll system
relevant Australian Taxation Office legislation
relevant industrial Awards
Superannuation Guarantee (Administration) Act
access to samples of financial data.
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:
analysis of responses to case studies and scenarios
demonstration of techniques
direct questioning combined with review of portfolios of evidence and third party workplace reports of on-the-job performance by the candidate
review of authenticated documents from the workplace or training environment
oral or written questioning to assess knowledge of accounting procedures and techniques.
Guidance information for assessment
Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended, for example:
financial administrationunits
other financial management units.
Replaces
State Code National Code Title Type
C3680 BSBADM505A Manage payroll Unit of competency
Replaced By
State Code National Code Title Type
AUK52 BSBFIM502 Manage payroll Unit of competency