Accounting and Bookkeeping

CPD course
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© 2017 AAMC Training Group Pty Ltd

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Last updated: 31-05-2017 Version 1.0

 Australian Accounting and Bookkeeping

Contents

Section 1 Establish Payroll Requirements 1

Apply knowledge of relevant legislation in relation to employment standards, and other legislative
requirements in regards to payments 1
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 3
Establish payroll set-up for salary packaging 3
Assess scope of payroll services BAS agent can provide and identify need for independent expert
advice providers 4
Section 2 Record Payroll Data 5
Ensure payroll system includes complete and accurate employee data 5
Review payroll data and clarify discrepancies with designated persons 10
Enter employee pay period details, deductions and allowances in payroll system in accordance with
source data 12
Calculate payment due to individual employees to reflect standard pay and variations in accordance
with employee source data 16
Section 3 Prepare and Process Payroll 21
Conduct payroll preparation within designated timelines in accordance with organisational policy and
procedures 21
Calculate, record and reconcile employee in accordance with legislative requirements 24
Reconcile total payments for pay period, and review and correct irregularities or refer them to
designated persons for resolution 28
Obtain authorisation of payroll and individual pay advice in accordance with organisational
requirements 30
Make arrangements for payments in accordance with organisational and legislative requirements 31
Produce, review and store payroll records in accordance with organisational policy and security
procedures 32
Section 4 Handle Payroll Enquiries 34
Respond to payroll enquiries in accordance with organisational and legislative requirements 34
Provide information in accordance with organisational and legislative requirements 35
Refer enquiries outside area of responsibility or knowledge to designated persons for resolution 37
Provide additional information or complete follow-up action within designated timelines in accordance
with organisational policy and procedures 38
Section 5 Maintain Payroll 40
Maintain all information and record keeping relating to payroll function in accordance with relevant
legislation and regulations 40
Produce and reconcile month-end and year-end checklists to ensure compliance with relevant legislative and
management deadlines 45
Update records and systems in line with salary reviews and other changes in employment status 49
Establish back-up and disaster recovery systems 50
Generate and distribute payroll reports in line with organisational policy 55
Extract and apply business activity statement (BAS) and instalment activity statement (IAS) data in
accordance with relevant legislation and regulations 57
Section 6 Employer Obligations 59
Different Kinds of Tax 59
PAYG Withholding Obligations 59
Tax Tables 61
Allowances subject to PAYG withholding 62

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Tax on back payments, commissions, bonuses, etc. 65

Withholding from annual and long service leave 68
Withholding from leave loading 69
PAYG withholding: Employees made redundant 69
Upward variation 69
Downward variation 70
How to report withholding amounts 70
When to pay withheld amounts 70
Types of payment summaries 71
Annual Reporting 74

Section 7 Insurance and Workers’ Compensation 76

Entitlements 77
Premiums 77
Claims 78

Learning Guide V1.0 © AAMC Training Group Contents