This unit describes the skills and knowledge required to research, analyse and apply knowledge of taxation systems to the provision of payroll services. 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:
FNSPAY505

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: - conduct research on changes to, or new, taxation systems relevant to payroll operations; - assess impact of taxation systems on payroll operations and apply understanding of taxation systems to payroll operations to ensure compliance and accuracy of payments; - inform stakeholders of changes to payroll operations resulting from changes to taxation systems in line with organisational policies and procedures; - determine the impact of taxation systems on at least three of the following types of legal entities and business structures: sole traders; partnerships; companies; not for profit organisations; principal contractors; subcontractors and grouped employers; - seek advice from sources when interpreting taxation systems, and; - use sources of information to ensure currency of knowledge of taxation systems relevant to payroll.Students will also be expected to demonstrate the following knowledge: - key features and operating principles of taxation systems relevant to payroll, including: income tax and state payroll tax; - impact of fringe benefits tax (FBT) on payroll including circumstances in which: FBT applies to payroll and payroll is exempt from FBT; - deductions and exemptions in taxation systems that apply to payroll, including: tax free thresholds and superannuation concessions; - State-based variations in: payroll tax thresholds; definitions of 'taxable wages' and applicable rebates and exemptions; - impacts of taxation systems on payroll operations, including how different taxation systems interact with each other to impact payroll operations; - roles and responsibilities of key organisations, including those of the Australian Taxation Office; - key principles underpinning the concept of 'employees vs contractors' in relation to pay as you go withholding (PAYGW) tax, superannuation, workers compensation, and payroll tax; - key features of tests that need to be applied in making a determination on the status of a worker for tax purposes; - key features of nexus provisions and tests that need to be applied in order to determine the correct jurisdiction for payroll tax liability; - industry-standard methods for calculating the payroll tax threshold in each State, and impact on that threshold for organisations that employ people in more than one State; - grouping provisions for payroll tax and principles underpinning the concept of a 'designated group employer', and; - sources of information on taxation systems that can be accessed to maintain currency of knowledge and to seek advice when interpreting impact of tax on payroll.

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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