Course Title: Establish and maintain a payroll system

Part A: Course Overview

Program: C5374 Diploma of Accounting

Course Title: Establish and maintain a payroll system

Portfolio: BUS Portfolio Office

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.


Course Code




Learning Mode

Teaching Period(s)


City Campus


650T Vocational Business Education

Face-to-Face or Internet

Term1 2017,
Term2 2017,
Term1 2018,
Term2 2018,
Term1 2019

Course Contact: Doug Gourlay

Course Contact Phone: +61 3 9925 5944

Course Contact Email:

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 the educational requirements of the Tax Practitioner Board (TPB).

Pre-requisite Courses and Assumed Knowledge and Capabilities

There are no pre-requisites for this unit.

National Competency Codes and Titles

National Element Code & Title:

FNSBKG405 Establish and maintain a payroll system


1. Establish payroll requirements

2. Record payroll data

3. Prepare and process payroll

4. Handle payroll enquiries

5. Maintain payroll

Learning Outcomes

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.