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Unit of competency details

FNSPAY502 - Process superannuation payments in payroll (Release 1)

Summary

Usage recommendation:
Superseded
Mapping:
MappingNotesDate
Is superseded by and equivalent to FNSPAY512 - Process superannuation payments in payrollSupersedes and is equivalent to FNSPAY502 Process superannuation payments in payroll. 14/Jun/2022

Releases:
ReleaseRelease date
1 1 (this release) 13/Feb/2018

Companion volumes:

Classifications

SchemeCodeClassification value
ASCED Module/Unit of Competency Field of Education Identifier 080101 Accounting  

Classification history

SchemeCodeClassification valueStart dateEnd date
ASCED Module/Unit of Competency Field of Education Identifier 080101 Accounting  11/Apr/2018 
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Unit Of competency

Modification History

Release 

Comments 

Release 1

This version first released with FNS Financial Services Training Package Version 3.0.

Application

This unit describes the skills and knowledge required to process employee superannuation payments in payroll systems.

It applies to individuals who, within their level of authority, use specialised knowledge, systematic approaches and analytical techniques to prepare data, calculate and verify superannuation payments, and ensure compliance with regulatory requirements using established payroll systems.

Work functions in the occupational areas where this unit may be used are subject to regulatory requirements. Refer to the FNS Financial Services Training Package Companion Volume Implementation Guide or the relevant regulator for specific guidance on regulatory requirements.

Unit Sector

Payroll

Elements and Performance Criteria

ELEMENT 

PERFORMANCE CRITERIA 

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Establish parameters and systems for superannuation payments

1.1 Establish and comply with procedures that ensure the confidentiality and security of employee payroll information

1.2 Establish default superannuation fund type in payroll system according to legislative and organisational requirements

1.3 Establish systems that ensure organisation meets its statutory obligations to employees with regard to superannuation payments

2. Collect and prepare information

2.1 Identify industrial awards, contracts and government legislation relevant to calculating superannuation payments

2.2 Gather employee data required to calculate superannuation payment from organisational sources

2.3 Consult with employee to confirm additional voluntary superannuation contributions or salary sacrifice arrangements, and include that information when calculating superannuation payment

2.4 Verify information with organisational sources and enter information into payroll system

3. Calculate and verify superannuation payments

3.1 Use payroll system to calculate employee superannuation payment

3.2 Verify superannuation payment is accurate and complies with legislative obligations and organisational policies and procedures

3.3 Generate superannuation payment in payroll system

4. Distribute and maintain information about superannuation payments

4.1 Prepare reports on superannuation payments and distribute according to organisational policies and procedures

4.2 Respond to employee and employer enquiries about superannuation payments according to organisational policies and procedures

4.3 Store records of employee superannuation payments according to legislative obligations and organisational policies and procedures

Foundation Skills

This section describes those language, literacy and numeracy and employment skills that are essential to performance.

Skill 

Description 

Reading

  • Identifies and interprets information from organisational policies, and legislative and industry-related material

Writing

  • Records data accurately using format, style and language appropriate to audience, purpose and context
  • Prepares specific information that clearly conveys an understanding of outcomes, and uses appropriate terminology when presenting to designated personnel

Oral communication

  • Articulates information concisely using appropriate terminology, tone and style
  • Uses questioning and listening techniques to exchange and clarify information

Numeracy

  • Uses a wide range of mathematical calculations to analyse and compare numerical information
  • Makes calculations to ensure work is completed according to predetermined timeframes

Navigate the world of work

  • Develops and implements strategies that ensure organisational policies, procedures and regulatory requirements are met
  • Monitors compliance with legal and regulatory responsibilities and organisational policies and procedures

Interact with others

  • Identifies and applies protocols governing what, how and with whom to communicate in a range of work contexts

Get the work done

  • Uses logical processes in planning, implementing, and evaluating routine and non-routine tasks in achieving goals and timelines
  • Uses analytical skills to identify discrepancies and attempts to resolve the issues within scope of own responsibility
  • Makes a range of critical and non-critical decisions in relatively complex situations, taking a range of factors into account
  • Understands the importance of secure information and privacy in relation to own work, and takes responsibility for identifying and managing risk factors

Unit Mapping Information

Code and title 

current version 

Code and title 

previous version 

Comments 

Equivalence status 

FNSPAY502 Process superannuation payments in payroll

No previous unit.

New unit.

No equivalent unit.

Links

Companion volumes are available from VETNet. - https://vetnet.gov.au/Pages/TrainingDocs.aspx?q=c7200cc8-0566-4f04-b76f-e89fd6f102fe

 

Assessment requirements

Modification History

Release 

Comments 

Release 1

This version first released with FNS Financial Services Training Package Version 3.0.

Performance Evidence

Evidence of the ability to:

  • establish procedures to ensure employee superannuation information is handled according to legislative and organisational obligations, including:
  • Income Tax Assessment Act
  • Superannuation Guarantee (Administration) Act
  • Fair Work Act
  • Privacy Act
  • collect information required to process superannuation payments in a payroll system
  • interact with stakeholders to ensure completeness and accuracy of information required to process superannuation payments
  • calculate superannuation payments using a payroll system based on ordinary time earnings
  • calculate reportable superannuation payments for inclusion in employee payment summaries
  • prepare, produce, distribute and store reports on superannuation payments according to organisational and legislative requirements.

Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.

Knowledge Evidence

The candidate must be able to demonstrate the following knowledge to effectively complete the tasks outlined in the elements and performance criteria of this unit, and to manage tasks and reasonably foreseeable contingencies in the context of the work role.

  • Key legislation and organisational policies and procedures relating to calculating superannuation payments for employees
  • Key features of different types of superannuation funds
  • Different types of superannuation payments, including:
  • employer contributions
  • salary sacrifice to superannuation
  • employee after-tax contributions
  • defined benefits
  • government co-contribution
  • superannuation guarantee charge
  • Eligibility requirements in relation to employer superannuation contributions
  • Pay items that are included in ordinary time earnings
  • Consequences of not reaching the maximum contributions earnings base for the quarter
  • Difference between concessional and non-concessional contributions and the impact on an employee of exceeding the concessional superannuation cap
  • Guidelines for implementing an effective salary sacrifice agreement for superannuation
  • Effect of various forms of salary packaging on the employer requirement to meet employer superannuation contribution obligations
  • Impact of different types of employment contracts, legal entities and business structures on an employer’s superannuation payment obligations to its employees
  • Consequences for an organisation of failing to comply with its superannuation payment obligations to employees

Assessment Conditions

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

  • office equipment, technology, software and consumables required to process superannuation payments in payroll, including:
  • organisational policies and procedures
  • payroll system
  • case studies and, where available, real situations relating to the above work.

Assessors of this unit must satisfy the assessor requirements in applicable vocational education and training legislation, frameworks and/or standards.

Links

Companion volumes are available from VETNet. - https://vetnet.gov.au/Pages/TrainingDocs.aspx?q=c7200cc8-0566-4f04-b76f-e89fd6f102fe