Course Title: Establish and maintain a payroll system

Part B: Course Detail

Teaching Period: Term2 2016

Course Code: ACCT5374C

Course Title: Establish and maintain a payroll system

School: 650T Vocational Business Education

Campus: City Campus

Program: C4362 - Certificate IV in Bookkeeping

Course Contact: Ben Sethia

Course Contact Phone: +61 3 9925 1374

Course Contact Email:

Name and Contact Details of All Other Relevant Staff

Paul Panebianco


Nominal Hours: 30

Regardless of the mode of delivery, represent a guide to the relative teaching time and student effort required to successfully achieve a particular competency/module. This may include not only scheduled classes or workplace visits but also the amount of effort required to undertake, evaluate and complete all assessment requirements, including any non-classroom activities.

Pre-requisites and Co-requisites


Course Description

This unit describes the skills and knowledge required to record and prepare payroll documentation, respond to enquiries and process accurate payroll data for manual and computerised systems.

It applies to individuals who use a range of organisational and other specialist techniques. They may work directly for organisations or be small business owners, contractors or service providers.

Work functions in the occupational areas where this unit may be used are subject to regulatory requirements. This unit is designed to meet educational requirements of the Tax Practitioner Board (TPB). Refer to the FNS Implementation Guide Companion Volume or the relevant regulator for specific guidance on requirements.

National Codes, Titles, Elements and Performance Criteria

National Element Code & Title:

FNSBKG405 Establish and maintain a payroll system


1. Establish payroll requirements

Performance Criteria:

1.1 Apply knowledge of relevant legislation in relation to employment standards, and other legislative requirements in regards to payments

1.2 Seek instruction from authorised parties in relation to relevant state and modern awards regarding details to be set up within payroll system for individual employees

1.3 Establish payroll set-up for salary packaging

1.4 Assess scope of payroll services BAS agent can provide and identify need for independent expert advice providers


2. Record payroll data

Performance Criteria:


2.1 Ensure payroll system includes complete and accurate employee data

2.2 Review payroll data and clarify discrepancies with designated persons

2.3 Enter employee pay period details, deductions and allowances in payroll system in accordance with source data

2.4 Calculate payment due to individual employees to reflect standard pay and variations in accordance with employee source data


3. Prepare and process payroll

Performance Criteria:


3.1 Conduct payroll preparation within designated timelines in accordance with organisational policy and procedures

3.2 Calculate, record and reconcile employee in accordance with legislative requirements

3.3 Reconcile total payments for pay period, and review and correct irregularities or refer them to designated persons for resolution

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

3.5 Make arrangements for payments in accordance with organisational and legislative requirements

3.6 Produce, review and store payroll records in accordance with organisational policy and security procedures


4. Handle payroll enquiries

Performance Criteria:


4.1 Respond to payroll enquiries in accordance with organisational and legislative requirements

4.2 Provide information in accordance with organisational and legislative requirements

4.3 Refer enquiries outside area of responsibility or knowledge to designated persons for resolution

4.4 Provide additional information or complete follow-up action within designated timelines in accordance with organisational policy and procedures


5. Maintain payroll

Performance Criteria:


5.1 Maintain all information and record keeping relating to payroll function in accordance with relevant legislation and regulations

5.2 Produce and reconcile month-end and year-end checklists to ensure compliance with relevant legislative and management deadlines

5.3 Update records and systems in line with salary reviews and other changes in employment status

5.4 Establish back-up and disaster recovery systems

5.5 Generate and distribute payroll reports in line with organisational policy

5.6 Extract and apply business activity statement (BAS) and instalment activity statement (IAS) data in accordance with relevant legislation and regulations

Learning Outcomes

Details of Learning Activities


Over a period of eight weeks you will be introduced to bookkeeping procedures and then like processes will be completed on a computerised system.

Primarily you will be learning face to face, with an online course site (Blackboard) used to disseminate materials, including videos, notes & activities and to provide access to on-line assessments & assessment submission points.

During class time you will prepare notes, participate in discussions and complete problem solving exercises. You will be required to complete all activities & assessment tasks, either in class or in your own time. e notes, problem solving exercises & solutions on the Blackboard site, which you will be expected to access & use in addition to your scheduled classes every week

Each class will be 3 hours.

You will also be provided with recorded "Collaborate" sessions, on-line notes, problem solving exercises & solutions on the Blackboard site, which you will be expected to access & use in addition to your scheduled classes every week






Teaching Schedule

Study Organiser Carry out Business Activity and Instalment Activity Statement Tasks and Establish and Maintain a Payroll System





Report /



  • Overview of Course
  • Blackboard structure and how to get around it
  • Assessment overview
    Check your Blackboard for announcements and information
      Meet the group

      Workshop 1

       Topic 1: Setting up a small business


      • Identifying different forms of business ownership
      • Identifying the basic duties and responsibilities of a bookkeeper and an accountant
      • Understanding the process of registering a business name, obtaining an Australian Business Number (ABN) and registration requirements for GST

      In-class activity on the blackboard

      Workshop 1

       Topic 2: Introduction to the Role of the Bookkeeper


      • Identifying the difference between a bookkeeper and a BAS Agent
      • Understanding the legislation relating to BAS Services and the registration and regulation requirements of becoming a BAS Agent
      • Identify the Code of Professional Conduct for bookkeepers
      • Understanding the Professional Indemnity Insurance regulations for a BAS agent in the provision of a BAS service
      Activity - check blackboard


      Workshop 1


       Topic 3: Payroll Policy and Procedures


      • Understand an employer's obligation for registering for PAYG withholding tax and ATO reporting requirements
      • Identifying the documentation and information required to calculate an employee's weekly pay
      • Understanding of an employee's entitlements under appropriate Award conditions


      MCQ In-Class Test : Topic 1 and Topic 2
      Check out
      See what a Modern Award looks like.  Find and look-up MA000002.
      Discuss National Employment Standards
      Activity – check blackboard

      Workshop 2

       Topic 4: Processing the Payroll


      • establishing a manual payroll system 
      • manually processing employees’ weekly pays
      • preparing payroll reports
      • ensuring compliance with payroll legislation
      • maintaining a manual payroll system
      • managing payroll enquiries
      Activity -  check blackboard
      In-Class Manual Payroll Exercises


      Workshop 2

       Topic 5: Processing the Payroll using MYOB


      • Setting up an employee in MYOB
      • Creating a Payroll Category
      • Processing the Payroll using MYOB
      • Reconciling the Payroll
      • Completing an end-of-year PAYG Payment Summary for your employees
      • ASSESSMENT:     MCQ In-Class Test:  Topic 3 and Topic 4
      • in-Class Exercises using MYOB
      • End of Year Payroll Processing,  ie: PAYG Payment Summaries


      Workshop 3 & 4

       Topic 6: Reporting PAYG Withholdings and PAYG Instalments


      • Completing a monthly BAS PAYG withholding summary
      • Understanding the calculation of PAYG Income Tax Instalments
      • Understanding the timing of PAYG Instalments
      • Understanding the types of variations allowed for PAYG Instalments
      Activity – check blackboard



      Workshop 5


       Topic 7; How GST Works - The recording and accounting


      • Understanding of Goods and Services Tax (GST) as it relates to BAS
      • Understanding who pays the GST
      • Understanding the registration requirements of GST
      • Completing a compliant Tax Invoice   
      Activity -  check blackboard


      Workshop 5

       Topic 8: GST and the BAS Statement


      • Understanding the methods used for calculating GST Liability.
      • Understanding the difference between the Cash and Non Cash (Accruals) method for GST calculation
      • Completing the GST summary of the BAS Statement 
      ASSESSMENT:    MCQ In-Class Test:  Topic 6 and Topic 7
      Activity -  check blackboard
      Activity - Completing the GST Calculation Worksheet
      Purchasing a MV and claiming GST Credits


      Workshop 6

      Topic 9: Other Reporting Requirements on the BAS Statement


      • Luxury Car Tax
      • Fuel Tax Credits
      • Wine Equalisation Tax
      • Fringe Benefits Tax
      Activity -  check blackboard


      Workshop 6

       Topic 10: Lodging the BAS


      • Completing the sections of the quarterly BAS Statement
      • Understanding the BAS Lodgement schedule and penalties for non compliance
      Activity -  check blackboard

             Workshop 6

       FINAL:   Wrapping Up                                                                            


      • Catch-up on any incomplete MCQ assessments.
      • Finalising Assignment


      MCQ In-Class Test:  Topic 8, 9 & 10

             Workshop 7





      Learning Resources

      Prescribed Texts


      Other Resources

      Overview of Assessment

      In order to achieve competency in this unit, you must provide:

      Performance Evidence

      Evidence of the ability to:

      • accurately identify, calculate and input data for payments into manual or computerised payroll systems
      • produce payroll reports in accordance with organisational and legislative requirements
      • present payroll report for verification and approval
      • maintain all records in compliance with organisational and legislative requirements that relate to security and confidentiality of information.

      Knowledge Evidence

      To complete the unit requirements safely and effectively, you must:

      • explain the scope of services appropriate for a business activity statement (BAS) agent providing payroll services
      • explain the application of award and enterprise agreements and relevant industrial instruments to payroll maintenance responsibilities
      • identify and explain organisational policy and procedures that affect payroll, including the structure of authority in organisations
      • explain industry codes of practice relevant to payroll operations
      • compare and contrast manual and computerised payroll systems
      • identify relevant legislation and record-keeping requirements from all levels of government that affect business operation and reporting requirements, especially in regard to:
        • Fair Work Act
        • National Employment Standards
        • Superannuation Guarantee (Administration) Act
        • corporations law
        • workers compensation and work health and safety
        • tax related to payroll activities
        • Privacy Act (confidentiality and security of records)
        • Higher Education Loan Program (HELP)
        • Medicare levy
        • Tax Agent Services Act (TASA)
        • current state, territory and Commonwealth industry and modern awards, and enterprise bargaining agreements
        • individual employment contracts
        • Commonwealth, state and territory leave Acts including annual, sick and long service
        • Australian Bureau of Statistics (ABS) Act
      • describe current Australian Tax Office (ATO) requirements such as:
        • Australian Business Number (ABN)
        • employment declaration
        • tax file number (TFN) declaration
      • identify the Tax Practitioners Board (TPB) requirements, including:
        • registration and scope of services documentation requirements for BAS agents
        • Code of Professional Conduct
      • explain relevant taxation law, including:
        • pay as you go (PAYG) withholding tax
        • fringe benefits tax (FBT)
      • outline the key aspects of routine and non-routine requirements for payroll, including:
        • routine: award payments, salary amount, salary packaging, superannuation guarantee and super reporting
        • non-routine: termination payments and super guarantee charge. 

      Assessment Conditions

      Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the bookkeeping field of work and include access to:

      • common office equipment, technology, software and consumables
      • workplace reference materials such as procedural manuals and company policy
      • actual or simulated payroll data.

      You are advised that you are likely to be asked to personally demonstrate your assessment work to your teacher to ensure that the relevant competency standards are being met.


      Feedback will be provided throughout the semester in class and/or online discussions.  You are encouraged to ask and answer questions during class time and online sessions so that you can obtain feedback on your understanding of the concepts and issues being discussed. Finally, you can email or arrange an appointment with your teacher to gain more feedback on your progress.

      You should take note of all feedback received and use this information to improve your learning outcomes and final performance in the course.       

      Assessment Tasks


      •  E-Portfolio
      • In-Class test
      • On-line test

       Once you have completed successfully all the assessment tasks mentioned above, you would be graded on employability grading system which will look into your knowledge acquired, technical/computer skills, initiatives in learning and problem solving, innovative approaches and/or self-organization, class participation, team work abilities and application of your learning to class exercises and assessment task.

      Assessment Matrix

      Other Information

      Submission Requirements:

      Assessment tasks need to be submitted via Blackboard. A “drop box” will be created for this purpose by your instructor.

      You should

      • Ensure that you submit assessments on or before the due date. If your performance in the assessment is affected by unexpected circumstances, you should consider applying for Special Consideration. Information on the process and application forms is available at;ID=ls0ydfokry9rz website.
      • Always retain a copy of your assessment tasks. (hard copy and soft copy)
      • When you submit work for assessment at RMIT University you need to use a cover sheet that includes a declaration and statement of authorship. You must complete, sign and submit a cover sheet with all work you submit for assessment, whether individual or group work. On the cover sheet you declare that the work you are presenting for assessment is your own work. An assignment cover sheet for submission of work for assessment is available from theStudent formswebsite.
      • Each page of your assessment should include footer with your name, student number, the title of the assessment, unit code and title and page numbers.   For example, Julie Macpherson, 324567, Task 2, OHS2345C Ensure safe workplace, Page 1 of 10.

       Resubmission Arrangements:

      For any task where the minimum requirement has not been met, you will be assessed as NYC (not yet competent).   You will then have the opportunity to resubmit that task &/or to be deemed competent in the same indicator, that being the required knowledge, skill and elements/performance criteria, via another scheduled task or assessment.

      Following from point 1 above, where you cannot be deemed competent via resubmission of the original task or via your performance in another scheduled task or assessment, you will be required to resit that task in the form of a closed book test or interview in the final week of the course, that being week 8.

      Assessment Feedback:

      You may be provided feedback either through blackboard “My Grades”, in the form of comments on your submitted assignments, or in person.

      Feedback is provided immediately on-line in relation to your answer to each question in On-line Tests, following each completed attempt.

      Feedback will be provided on request during your completion of the Manual & MYOB Case Study. Following submission, feedback will be provided during an interview where necessary & on a Feedback Sheet (see attached) within 2 weeks of submission.

      Allowable Adjustments

      All evidence gathered will be assessed according to the rules of evidence and the Marking Guide for each assessment of the course.

      • If your performance in the assessment is affected by unexpected circumstances, you should consider applying for Special Consideration. Information on the process and application forms is available at;ID=ls0ydfokry9rz website.

      Assessment Appeals

      If you believe your assessment result is not fair or correct, you can appeal the assessment decision. More information regarding RMIT’s Appeals Process can be found at:



      Plagiarism is copying. It occurs when a course participant copies or reproduces another person’s words or ideas, and presents them as their own without proper acknowledgement. This includes: work of others, with or without their knowledge; downloading information from the internet; copying sections from books.

      Plagiarised work will not be assessed.


      The final grading categories are listed below:


      Final Grades Table:


      Competent with High Distinction


      Competent with Distinction


      Competent with Credit


      Competency Achieved – Graded


      Not Yet Competent


      Did Not Submit for assessment



      Course Overview: Access Course Overview