FNSPAY515 - Interpret and apply knowledge of taxation systems relevant to payroll

Unit code: FNSPAY515 | Study level: TAFE
Nominal hours
40
Location
Footscray Nicholson
Prerequisites
N/A
Overview
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Overview

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

Assessment

For Melbourne campuses

Assessment tasks will be designed to reinforce & extend knowledge and skill competence within set & controlled parameters in accordance with each unit's learning outcomes & 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:

  • review at least two different payroll operations and confirm they comply with taxation system requirements.
    In the course of the above, the candidate must:
  • conduct research on changes to taxation system requirements relevant to payroll
  • inform relevant stakeholders of changes to payroll operations resulting from changes to taxation systems.

Students will also be expected to demonstrate the following knowledge:

  • key features and operating principles of taxation systems relevant to payroll, including state payroll tax
  • impact of fringe benefits tax (FBT) on payroll, including circumstances in which:
  • FBT applies to payroll
  • payroll is exempt from FBT
  • deductions and exemptions in taxation systems that apply to payroll, including:
  • tax free thresholds
  • superannuation concessions
  • state-based variations in:
  • payroll tax thresholds
  • definitions of taxable wages
  • applicable rebates and exemptions
  • impacts of taxation systems on payroll operations, including how different taxation systems interact with each other to impact payroll operations
  • 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
  • sources of information on taxation systems, business structures and employment contracts that can be accessed to maintain currency of knowledge and to seek advice when interpreting impact of tax on payroll
  • organisational policies and procedures required to produce performance evidence
  • impact of taxation systems on the following types of legal entities and business structures:
  • sole traders
  • partnerships
  • companies
  • not for profit organisations
  • principal contractors
  • subcontractors
  • group employers.

Required reading

The qualified trainer and assessor will provide teaching and learning materials as required in the form of workbooks produced by Victoria University and/or via the Victoria University e-Learning system.

As part of a course

This unit is studied as part of the following course(s):

Payroll Administrator Skill Set
FNSSS00012 | Non-award course | Duration: 6 months

Refer to the course page for information on how to apply for the course. VU takes care to ensure the accuracy of this unit information, but reserves the right to change or withdraw courses offered at any time. Please check that unit information is current with the Student Contact Centre.

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