This unit describes the skills and knowledge required to process uncommon and complex employee terminations in payroll systems, including calculating and providing employment termination payments (ETPs). It applies to individuals who, within their level of authority, use specialised knowledge, systematic approaches and analytical techniques to prepare data, calculate and verify payments, and ensure compliance with regulatory requirements using established payroll systems.

Unit details

Study level:
Vocational and further education (TAFE)
Unit code:
FNSPAY503

Assessment

Assessment tasks will be designed to reinforce and extend knowledge and skill competence within set and controlled parameters in accordance with each unit's learning outcomes and performance criteria requirements, including the setting of work based practical application tasks designed to provide evidence of competence outcomes, within periodic and scheduled timelines. Students will be expected to demonstrate the following required skills: - collect information required to carry out an employment termination process in a payroll system; - interact with stakeholders to ensure completeness and accuracy of information required to process that termination; - ensure compliance of employment termination with legislative requirements and organisational procedures; - process each of the following employment termination types in payroll systems, including calculating the employment termination payment (ETP) for each: resignation; redundancy and retirement; - process at least one of the following employment termination types in payroll systems, and calculate the corresponding ETP: dismissal; unfair dismissal; invalidity; death; termination for pre-August 1983 starters and golden handshakes; - process the above termination payment entitlements according to commonwealth, state and territory legislative requirements, including: final salary and wages payments; unused annual leave and long service leave; notice and redundancy payments; unused rostered days off (RDOs) and other entitlements; gratuities and settlements, and; - maintain records of the above employment terminations according to legislative requirements.Students will also be expected to demonstrate the following knowledge: - different types of employment terminations, including: resignation; redundancy; retirement; dismissal; unfair dismissal; invalidity; death; termination for pre-August 1983 starters and golden handshakes; - key types of ETPs and when they are used; - key features of organisational policies and procedures relating to ETPs; - legislative requirements relating to termination notice periods and redundancy payments; - significance of determining the preservation age of an employee on termination; - tax treatment for a redundancy payment, including the Lump Sum D component and any excess over the tax free Lump Sum D amount; - tax treatment options for unused annual leave and long service leave on termination; - different tax treatments of ETPs and how they are calculated; - types of termination payments that are subject to superannuation contributions; - impact of legislative requirements on complex employee terminations, and; - sources of information on employment termination processes that can be accessed to maintain currency of knowledge and to seek advice.

Where to next?

As part of a course

This unit is studied as part of the following courses. Refer to the course page for information on how to apply for the course.

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