Introduction Classroom schedule Trainer contact details
Assessments Resources: Calculator, pen and paper Slide 2
Slide 3
Introduction Getting to know each other: What is your name?
Where do you live? Why are you doing this course? Where do you
work? Have you studied a module or unit similar to this before?
Slide 3
Slide 4
Introduction Unit comprises four elements: Establish procedures
for the management of payroll Prepare payroll data Authorise
payment of salaries Administer salary records Slide 4
Slide 5
Establish procedures for the management of payroll Introduction
What is payroll? Salaries and wages Other payments What is the
payroll system? Definition Slide 5
Slide 6
Establish procedures for the management of payroll Introduction
continued: Payroll and the hospitality and tourism industry High
payroll costs High employee turnover Know your workplace! Slide
6
Slide 7
Establish procedures for the management of payroll Legislative
requirements: Labour laws, employment laws Unique to each country
ASEAN charter Privacy and confidentiality Wage rates and conditions
Taxation rates and requirements Codes of practice Slide 7
Slide 8
Establish procedures for the management of payroll Payroll
information: Organisational records and information Payroll
register Passwords and other authorisation details Back up and
storage Records of hours worked Reports SECURE AND CONFIDENTIAL!
Slide 8
Slide 9
Establish procedures for the management of payroll Security
procedures: Why are security procedures necessary? Where do you
find details of security procedures? Internal controls Privacy and
confidentiality Slide 9
Slide 10
Establish procedures for the management of payroll Security
procedures (continued): Audit trail Authorised access Back up files
and off site storage Employee details Access Secure transfers Slide
10
Slide 11
Establish procedures for the management of payroll Security
procedures (continued): Processing payroll Numbered documents
Physical location Storing reports and other data ACTIVITY Slide
11
Slide 12
Establish procedures for the management of payroll Internal
control measures: Internal control systems defined Objectives of
internal control Safeguard assets Valid, complete and accurate
transactions Increase efficiencies Slide 12
Slide 13
Establish procedures for the management of payroll Internal
control measures: Principles of internal control Establish
responsibility Separate duties Document procedures Use electronic
equipment Slide 13
Slide 14
Establish procedures for the management of payroll Internal
control measures and payroll: The bank account New employees or
changes to employment conditions Recording and authorizing hours
worked Salary Wages Overtime Slide 14
Slide 15
Establish procedures for the management of payroll Internal
control measures and payroll: The bank account New employees or
changes to employment conditions Processing payroll Preparing
payroll Processing hours worked Processing cheque or electronic
payments What about cash? Slide 15
Slide 16
Establish procedures for the management of payroll Internal
control measures and payroll: Distributing payroll Cheques Pay
advice slips Reconciling payroll Total hours Total amounts paid
Correct errors Slide 16
Slide 17
Establish procedures for the management of payroll Internal
control measures and payroll: Budgetary controls Standards of
performance Average hourly rate Average time to complete tasks
Total budgeted payroll costs Slide 17
Slide 18
Establish procedures for the management of payroll Statutory
obligations: Conditions of employment Labour management relations
Employment of migrant workers Occupational health and safety Slide
18
Slide 19
Establish procedures for the management of payroll Statutory
obligations: Income tax Payroll tax Other deductions and relief
ACTIVITY Slide 19
Slide 20
Establish procedures for the management of payroll Records and
record keeping: Types of records Period of time to retain records
Storage Destruction Slide 20
Slide 21
Establish procedures for the management of payroll Claims for
allowances: What is an allowance? Allowance or employee benefit?
Examples of allowances How are allowances paid Categories of
allowances (continued on next slide) Slide 21
Slide 22
Establish procedures for the management of payroll Claims for
allowances (continued): Set allowances Condition of employment
Employee assigned relevant allowance code in payroll system
Specific event-linked allowances Action linked to a standard
payroll process Supervisor approval timesheet or other record of
hours Slide 22
Slide 23
Establish procedures for the management of payroll Claims for
allowances (continued): Specific event or activity claimable
allowance Application and approval process Standard form Supporting
documentation Implications for gross pay calculations Depends on
location of business and definition of income Slide 23
Slide 24
Establish procedures for the management of payroll Claims for
allowances (continued): Creating allowances in the payroll system
Unique code Authorised by payroll manager Supporting documentation
Slide 24
Slide 25
Establish procedures for the management of payroll ACTIVITY
Classify the following allowances into the appropriate category and
detail the procedures for claiming allowances for each category
Travel allowance Overtime meal allowance Tool allowance Laundry
allowance Relocation allowance Slide 25
Slide 26
Prepare payroll data Prepare payroll data: Calculate gross pay
Calculate deductions Provide payroll data for processing Slide
26
Slide 27
Prepare payroll data Introduction: What is gross pay? Gross pay
is defined as the sum of an employees wages or salary earned in the
payroll period plus any allowances, commissions, bonuses or
entitlements before any deductions are made. Slide 27
Slide 28
Prepare payroll data Calculating gross pay: Employment history
records Appropriate pay structure Record of hours worked Overtime
Penalty rates Allowances Slide 28
Slide 29
Prepare payroll data Calculating gross pay: Benefits in kind
Leave entitlements Salary packaging or salary sacrifice Termination
payments Tips gratuities and service charges Slide 29
Slide 30
Prepare payroll data Calculating gross pay: Activities
Calculate the gross pay for the following situations An employee
works for 8 hours and is paid an hourly rate of XXX per hour for 5
days in total An employee works for 4 days, 10 hours per day. For
every hour worked over 35 hours, the employee received overtime at
1.5 times normal hourly rate. The hourly rate is XXX Slide 30
Slide 31
Prepare payroll data Calculating deductions: What are
deductions? When are deductions calculated Categories of
deductions: Statutory deductions Voluntary deductions Slide 31
Slide 32
Prepare payroll data Statutory deductions: Income tax Deducted
for every employee, each pay period Gross pay (inclusions and
exclusions) Progressive taxation systems Some regions or countries
do not deduct Slide 32
Slide 33
Prepare payroll data Statutory deductions: Relief or rebates
Reduces income tax calculated Gross pay Dependants Other reasons
Slide 33
Slide 34
Prepare payroll data Statutory deductions: Medical insurance
Percentage of gross pay Pension or retirement funds or schemes
Percentage of gross pay Other deductions Slide 34
Slide 35
Prepare payroll data Voluntary deductions: Written
authorisation only Give rise to a rebate or relief Pay advice slip
always states: Name of deduction Monetary amount Slide 35
Slide 36
Prepare payroll data Voluntary deductions: Insurance policies
Health Life Donations to charities Union fees Slide 36
Slide 37
Prepare payroll data Voluntary deductions: Additional taxes
Means of saving Social security payments Pension or retirement fund
contributions Other deductions Slide 37
Slide 38
Prepare payroll data Payroll levies: Business obligations
Social security Pension or retirement funds or schemes Medical
insurance Other taxes Slide 38
Slide 39
Prepare payroll data Providing payroll data: Nature and size of
organisation Internal preparation External company The payroll
register Slide 39
Slide 40
Prepare payroll data Preparing the payroll register: Hours
worked Gross pay Deductions Net pay Cumulative totals Slide 40
Slide 41
Prepare payroll data Key organisational timelines: Work
backwards from day employees need to be paid Consider types of
employees in hospitality and tourism organizations Weekly,
fortnightly, monthly Distribution of payments cheques or electronic
transfer Distribution of pay advice slips post, internally, pick up
Slide 41
Slide 42
Prepare payroll data Key organisational timelines: New employee
information Income tax payments Other statutory deductions Other
tax liabilities ALWAYS ALLOW FOR EXTRA TIME BECAUSE THINGS CAN GO
WRONG! Slide 42
Slide 43
Prepare payroll data ACTIVITY Provide a timeline for a weekly
pay period where employees are expected to be paid on a Friday
Slide 43
Slide 44
Authorise payment of salaries Authorising payment of salaries:
Check payroll for appropriate authorisations Reconcile salaries and
wages Deal with payroll inquiries Slide 44
Slide 45
Authorise payment of salaries Check payroll for appropriate
authorisations: What are source documents Adjusting information in
the payroll system Checking data Exceptions and variations
Experience! Slide 45
Slide 46
Authorise payment of salaries Check payroll for appropriate
authorisations (continued): Authorising the payroll register
Appropriately prepared Error free reconciliations have been
performed Who performs this task? Arranging payment Method of
payment Net pay on the payroll register Slide 46
Slide 47
Authorise payment of salaries Methods of payment (continued):
Electronic transfers Employee bank account details Authorised
electronic or hard copy payment listing Cheques Two authorised
signatories Printed electronically Written manually Slide 47
Slide 48
Authorise payment of salaries Methods of payment (continued):
Cash payments CAUTION Cash analysis sheet Breakdown of notes and
coins Stored in secure envelopes and collected. Slide 48
Slide 49
Authorise payment of salaries Pay slips or advices: Formal
record of gross pay, deductions and net pay Details that are
included on a pay slip Electronic or manual distribution Post
payroll errors: Electronic transfer rejections Monitoring overtime
Slide 49
Slide 50
Authorise payment of salaries Reconcile salaries and wages:
What is a reconciliation of salaries and wages? Internal control
measure Timelines Authorisations Standard forms What
reconciliations are performed? (continued on next slide) Slide
50
Slide 51
Authorise payment of salaries Reconcile salaries and wages:
Employee numbers Normal and overtime hours Leave entitlements The
number of pays prepared Statutory deductions Voluntary deductions
Gross payroll and the general ledger Slide 51
Slide 52
Authorise payment of salaries Deal with payroll related
inquires - Activity: 1) I didnt get paid 2) My leave has been
approved but I want to change the dates I will be away 3) I need to
change my bank details 4) My income tax rate has changed 5) My
details have changed can I claim a rebate or relief? 6) Why is
medical insurance deducted from my gross pay? 7) I wasnt paid for
the correct number of hours worked 8) I was expecting a meal
allowance but I cant find it on my pay advice Slide 52
Slide 53
Authorise payment of salaries Deal with payroll related
inquires: For each inquiry on the previous slide, explain the
following: Policy or knowledge required Possible responses Slide
53
Slide 54
Administer salary records Administer salary records: Process
declaration forms Forward periodic deductions to nominated
creditors Prepare payments to government authorities Calculate
group tax amounts Prepare and reconcile employee payment summaries
Slide 54
Slide 55
Administer salary records Process declaration forms: What is a
declaration form? Income tax declaration form Employee details
Unique code or number Personal details Employment status Eligible
income, deductions, rebates or relief Slide 55
Slide 56
Administer salary records Process declaration forms: Income tax
declaration form Employer details Business name Address of the
business Employment status of employee ALWAYS SIGNED BY EMPLOYEE
AND EMPLOYER Slide 56
Slide 57
Administer salary records Process declaration forms: Rebate or
relief forms Personal details of employee Indication of rebates or
relief claimed Names of dependants where relevant Details required
to show eligibility for other rebates ALWAYS SIGNED BY EMPLOYEE AND
EMPLOYER Slide 57
Slide 58
Administer salary records Process declaration forms: Other
forms Bank account details Emergency contact information Other
deductions Disposal of declaration forms Record management policies
Slide 58
Slide 59
Administer salary records Forward periodic deductions to
nominated creditors: What is a creditor? What is a periodic
deduction? Statutory Voluntary How are deductions forwarded?
Documentation Monetary amounts Slide 59
Slide 60
Administer salary records Forward periodic deductions to
nominated creditors: Non government authorities Pension funds and
schemes Insurance companies Unions Charities Employer benefits
Slide 60
Slide 61
Administer salary records Prepare payments to government
authorities: Government authorities Income tax payments Other taxes
Medical fund payments Pension funds Other agencies Slide 61
Slide 62
Administer salary records Calculate group tax amounts: What
does group tax mean? Group tax can include Income tax Rebates and
relief Other taxes Slide 62
Slide 63
Administer salary records Calculate group tax amounts: Income
tax Tax table or schedule for pay period Use whole numbers Sum
income tax for each employee and report periodically Forward total
monetary amount collected from employees Slide 63
Slide 64
Administer salary records Calculate group tax amounts: Rebates
or relief Separate tables or schedules Included in income tax
tables Sum rebates or relief for each employee and report
periodically with income tax deductions Slide 64
Slide 65
Administer salary records Calculate group tax amounts: Other
taxes Medical insurance Pension or retirement funds or schemes
Tables or schedules for appropriate amounts depending on gross pay
Sum amounts collected for each employee and report periodically
Slide 65
Slide 66
Administer salary records Prepare and reconcile employee
payment summaries: What are employee payment summaries? What
information do they contain? Total income Deductions Allowances
Employee benefits Slide 66
Slide 67
Administer salary records End of year checks and processes:
Employee details Check employee records to payment summary Employee
entitlements Compare amounts paid during the year to each
employment summary Payroll processing is complete Confirm that
there are no outstanding pays to be distributed to employees Slide
67
Slide 68
Administer salary records End of year checks and processes:
Reconcile payroll Payroll register to source documents General
ledger Produce payment summaries Final check Duplicate or multiple
copies Forward and file appropriately Slide 68