ACCESS AND EQUITY POLICY



GLOBAL STAR ENTERPRISES

PAYROLL MANUAL

Contents

Payroll Service Orientation 3

1. Policy statement 3

2. Overview of the GSE payroll system 3

3. Compliance with State/ Territory and Federal legislation 3

4. Roles and responsibilities of the payroll team 4

5. Overview of internal control processes to ensure efficiency 5

6. Overview of risk management strategies / contingencies 6

7. Payroll data is calculated within designated timelines 6

8. Payroll is authorised and reconciled according to workplace policy 6

9. Response and follow-up of payroll enquiries 6

Payroll Administration Procedures 7

10. Preparing and processing the payroll 7

11. Checking and reconciling the payroll 7

12. Processing wage/salary payments to employees and issuing pay slips 8

13. Payment of staff bonuses 8

14. Substantiating allowances and reimbursements 8

15. Administering payroll records 9

16. Accuracy of salary / allowance /statutory and voluntary payments 10

17. Confidentiality and security 11

Payroll Service Orientation

Policy statement

At Global Star Enterprises (GSE), our employees are our most valuable asset, and as such we aim to ensure the processing of staff wages and salaries are prioritised and conducted in a fair, accurate and timely manner at all times.

Overview of the GSE payroll system

The GSE payroll system has been designed to administer the payroll, entitlements and deductions of all GSE staff, whether full-time, part-time, contract or casual staff.

GSE uses the payroll function within their MYOB accounting software. Currently GSE uses the latest MYOB AccountRight Premier version.

The MYOB AccountRight software program, along with the roles and responsibilities, procedures and guidelines set out in this Payroll Manual, forms the foundation of the GSE payroll system.

Compliance with State/ Territory and Federal legislation

The GSE payroll system has been established to ensure all GSE staff are paid in accordance with all Australian legislative requirements, including State/ Territory and Federal laws. GSE staff include workers in all states of Australia, therefore the system is subject to the following legislation:

a) Australian Accounting and Auditing Standards:



b) Australian Securities and Investments Commission (ASIC):

.au

c) Australian Taxation Office:



Tax tables:



Pay As You Go (PAYG) withholding:



Fringe benefits:

(fbt)/types-of-fringe-benefits/

Fringe Benefits Tax (FBT):

(fbt)/

Higher Education Loan Programme (HELP) repayment thresholds and rates:



Garnished wages:



Superannuation Guarantee (SG):



Tax File Number (TFN):



d) Corporations Law:



e) Fair Work Act 2009:



f) Fair Work Commission:



g) Work Choices:



h) Notional Agreement Preserving State Award (NAPSA):

(napsa)

i) Workers Compensation:

ACT: worksafe..au

New South Wales: workcover..au

Northern Territory: worksafe..au

Queensland: .au

South Australia:

Tasmania: worksafe..au

Victoria: worksafe..au

Western Australia: workcover..au

j) State Revenue - Payroll Tax – Queensland:



k) Centrelink:



l) Child support:



Roles and responsibilities of the payroll team

The ultimate responsibility of the payroll process lies with the General Manager of Finance and Administration, who is directly responsible to the Chief Executive Officer.

The payroll is prepared on a fortnightly basis by the Payroll Officer and checked and authorised by either the Accountant or General Manager of Finance & Administration.

Preparing and managing the payroll must be completed in accordance with the procedures and guidelines set out in this Payroll Manual and meet legislative requirements.

These tasks include:

4.1 Fortnightly collation, review and recording of completed timesheets.

4.2 Processing and recording of payroll ensuring accuracy of entitlements and deductions.

4.3 Authorising correct payment of wages to staff bank accounts.

4.4 Processing pay slips ensuring correct details are recorded.

4.5 Management of any over or underpayments.

4.6 Processing details for all new staff.

4.7 Processing termination pay for all staff ceasing employment.

4.8 Processing end of financial year payroll documents including payment summaries.

4.9 Maintaining records.

4.10 Processing reports.

Overview of internal control processes to ensure efficiency

The internal control processes are consistent with the requirements of the Australian Tax Office (ATO) and the Australian Accounting and Auditing Standards. The controls in place are as follows:

1. When a staff member joins GSE, all records and forms including Tax file number declaration, superannuation, deductions etc., are kept on file in a secure location.

2. This information is transferred to the employee’s payroll records in MYOB. The initial set up includes the relevant details of the staff member, including rate of pay, hours, leave entitlements etc.

3. Time sheets are kept in the staff room for all staff to complete on a daily basis.

4. 3pm Wednesday on a fortnightly basis, an automatic email is distributed to remind staff to complete, check and have their timesheets authorised by their managers.

5. The Payroll Officer will collect, check and process the time sheets into the MYOB payroll program.

6. Any errors or irregularities found in a timesheet, claim form or other source document will be raised by the Payroll Officer with the relevant staff member via email.

7. The process involves retrieving the staff member’s details in MYOB and making any adjustments. The details are checked. This process is repeated for each staff member until the entire payroll has been updated for the period in question.

8. An ABA file is downloaded from the MYOB software and uploaded into ANZ internet banking.

9. Once this has been checked for the final time, the Accountant or General Manager of Finance and Administration authorises the payment and the pays are transferred electronically to the employees’ bank accounts.

10. The pay will appear in the employees’ accounts on the Friday of the same week.

11. A backup of all payroll records are kept off-site.

12. In the MYOB payroll, when a transaction has been completed, the appropriate ledger accounts in the MYOB accounting system will be debited and credited accordingly.

13. PAYG tax is forwarded to the ATO on a monthly basis.

14. The payment of superannuation into employees’ superfunds is also done on a monthly basis by GSE, but is only required to be paid quarterly in accordance with legislation.

15. Other voluntary payments by staff are also distributed on a monthly basis.

Overview of risk management strategies / contingencies

There are three (3) main areas of concern with regard to GSE risk management strategies with regard to payroll and these have been classified under the headings of High, Medium or Low Risk.

1. Security. Low Risk –

Currently all transactions are conducted in a secure office and files are kept in a locked cabinet. Computer access requires a series of codes. Backup copies are kept offsite. Theft and fire pose a minimum threat and backup copies are offsite for this eventuality.

CONTINGENCY: Use offsite back up copy.

2. Accuracy. Low Risk –

Even though the work is checked and rechecked thoroughly, errors can still occur both by staff members providing the wrong information and during the payroll processing stage.

CONTINGENCY: Correct any errors either immediately or next payroll period.

3. Breakdown of equipment. Medium Risk –

Equipment failure can occur through power outages, software problems, internet providers etc. These breakdowns can occur within GSE or external providers – e.g. ANZ banking system.

CONTINGENCY: Internal equipment can be replaced. Power outages – wait for power to be restored – pay may be delayed. Arrange for payroll to be issued from area not affected by power outage. In the event of an ANZ internet banking system failure, place payroll on disk and deliver to local ANZ branch.

4. Finance Manager. High Risk –

At present the Accountant and General Manager of Finance and Administration are the only people authorised to approve the payroll.

Payroll data is calculated within designated timelines

5. Payroll is calculated and conducted on a fortnightly basis according to GSE and ATO requirements.

Payroll is authorised and reconciled according to workplace policy

6. The processing of the payroll is the responsibility of the Payroll Officer. The payroll is checked and authorised by either the Accountant or General Manager of Finance & Administration – as per Section 11.

7. The Payroll Officer reconciles the payroll on a fortnightly basis according to workplace policy and ATO requirements – as per Section 11.

Response and follow-up of payroll enquiries

8. Staff must raise payroll related enquiries using the allocated email Dropbox account: payroll.enquiries@

9. Where an employee raises a payroll related enquiry, the payroll department will make all reasonable efforts to respond within four (4) working hours.

10. Payroll staff will initially raise the query with the employee’s direct manager and where discrepancies exist, with the employee.

11. For matters of a complex or sensitive nature, the enquiry may be escalated immediately to the Accountant for action. In such cases, the enquiry must be forwarded via email and include all relevant details including:

a. nature of the payroll enquiry

b. pay period/ date details

c. amount of money being queried

d. employee’s full name, employee number and contact details

e. any actions/follow up that have been offered or promised.

12. Where an error has been identified in the payment of wages/ salary, the relevant payroll records must be amended and a revised pay slip will be sent to the employee.

Payroll Administration Procedures

Preparing and processing the payroll

13. Wages are paid into employee bank accounts fortnightly on a Friday. The fortnightly pay period runs from a Monday to the Sunday one fortnight later. Wages paid to employees on a Friday are for work completed Monday one fortnight ago up to and including the Sunday 2 days after pay day.

14. Fortnightly on a Wednesday afternoon at 3pm, all staff are notified to complete, check and have their time sheets signed by their supervisor. At this time any previous discrepancies should be resolved.

15. Staff have until 12pm on the following day (Thursday) to finalise and submit their authorised time sheets, expense claim forms and any other source documents to payroll.

16. The Payroll Officer has until 4pm Thursday to prepare and process the payroll in MYOB and have it checked and signed off (authorised) by the Accountant or General Manager of Finance and Administration once completed.

Checking and reconciling the payroll

17. Confirm that the total hours recorded for each employee reconciles to their timesheet. Check that a supervisor has authorised their timesheet.

18. Ensure each employee's hourly rate reconciles to the rate stipulated in their employment contract, including overtime rates and leave payments.

19. Confirm that gross wages reconciles to the employee's total hours worked multiplied by their hourly rate.

20. Check individual employment contracts for any allowances. Ensure that reimbursements recorded in the payroll reconcile to an authorised claim form with receipts.

21. Confirm statutory and voluntary deductions for each employee are correct and in accordance with relevant tax tables and employment agreements.

22. Reconcile net pay to: gross wages (including any allowances) less deductions.

23. Reconcile the total cash payment scheduled to be withdrawn from the company bank account to the total of all net pays.

24. Ensure that superannuation has been calculated and applied correctly for all eligible employees.

25. Reconcile the total payroll figure for the pay run to the total of all payroll accounts affected.

Processing wage/salary payments to employees and issuing pay slips

26. The Payroll Officer has until 5pm Thursday to upload the ABA file taken from MYOB into ANZ internet banking. The Accountant or General Manager of Finance and Administration will need to authorise the wage/ salary payments in ANZ internet banking. The payment date will be set for the following day (Friday).

27. To download the ABA file from MYOB, go to Prepare electronic payments in the process payments window and select the cheque account from the list of accounts appearing in the ‘pay from account’ field.

28. In the ‘bank processing date’ field, enter the following day’s date, being the Friday.

29. Ensure only those employees you need to pay have been ticked.

30. Click on Bank File and save as under the GSE Payroll ABA Downloads folder using the following file path: GSE payroll fortnight ending xx/xx/xx.

31. Log into ANZ internet banking and upload the ABA file for authorisation by the Accountant or General Manager of Finance and Administration.

32. The Payroll Officer has until 5pm Friday to issue pay slips to all employees for the current pay period.

Payment of staff bonuses

33. Unless otherwise stated in the employee’s employment contract, a request to pay staff an ad-hoc bonus amount must be authorised in writing by the relevant department general manager.

34. Approval may be sent directly to payroll via email using the payroll dropbox account: payroll.enquiries@

Substantiating allowances and reimbursements

35. Employees wishing to make a claim for an allowance or reimbursement must complete the expense claim form located on the GSE Intranet.

36. The claim form must be signed and authorised by the employee's direct supervisor or manager.

37. Where an expense claim has been raised, the employee is responsible for attaching a copy of all relevant receipts.

38. Payroll staff must check the following information:

a. the claim form has been completed correctly and is signed by the employee’s direct supervisor or manager.

b. the employee’s claim is aligned with their entitlements as stated in the relevant contract or modern award.

c. dates and locations are aligned with the work activity, receipt or allowance being claimed for.

39. The completed claim form must be sent to payroll by Thursday 12pm in order to be included in the current pay run.

40. A copy of the claim form and receipts are scanned and uploaded into the employee’s HR file.

Administering payroll records

41. Individual files are used for recording employee details including –

a. name

b. employment start date

c. references

d. pay awards

e. job description

f. employment status – i.e. full-time, part-time, casual etc.

g. start / finish / overtime details

h. gross pay

i. deductions

j. leave entitlements

k. leave accrued

l. leave taken

m. performance reviews

n. salary reviews

o. superannuation details – name of fund

p. authorised payroll deductions

q. tax file number declarations

r. general correspondence

s. personal development records.

42. Starting procedures. New employees –

a. Need to complete a Tax file number declaration form which is to be completed and sent to the Australian Tax Office within 14 days of commencement.

b. Details then entered into MYOB including name, rates of pay etc.

c. Hard copy file to be opened and stored in secured cabinet.

43. Termination procedures. Employees Leaving –

a. Termination advice must be completed within timeframe guidelines – i.e. two weeks’ notice for full-time employees.

a. Records on MYOB to be made inactive.

b. File removed from current active file to archived records.

44. Overpayments. In the event of an overpayment –

a. The repayment of the overpayment will have to be negotiated with the employee in consultation with the Accountant or General Manager of Finance and Administration.

b. If the employee agrees, the overpayment can be reimbursed in instalments or by personal cheque or by direct debit.

45. Underpayments. In the event of an underpayment –

a. For amounts that exceed $100, the underpayment can be paid immediately into the employee’s bank account.

b. For amounts not in excess of $100, the underpayment can be paid in the next payroll period if the employee agrees.

c. Exceptions may apply, based on approval from the Accountant or General Manager of Finance and Administration.

46. Payroll register report –

a. A hardcopy of the Payroll report is filed for reconciliation purposes.

b. All payroll details automatically debited and credited to the appropriate ledger account.

c. Tax and superannuation payments are forwarded to the ATO and employee super funds on a monthly basis.

47. Pay slips. According to fair work legislation all pay slips must detail the following –

a. employee’s name

b. employee’s job classification under any award or agreement

c. employee’s job title

d. date of the payment

e. period of the payment

f. gross and net amount of the payment

g. details of any penalty rates (such as overtime or loadings) applicable during the pay period

h. current annual salary for annual employees, or the current hourly rate for fixed-term contract or casual employees

i. details of any deductions made for the pay including the amount and the purpose of each deduction

j. the name and number of the fund or account where the deductions were paid into

k. superannuation contributions including:

i. the amount of contributions made under the Superannuation Guarantee (Administration) Act 1992

ii. the amount of employee contributions

iii. the name of the fund to which the contributions were made.

Accuracy of salary / allowance /statutory and voluntary payments

48. All details of salaries, allowances, and deductions are recorded on permanent files in MYOB.

49. Any adjustments for the pay period are made and checked by the Accountant or the General Manager of Finance and Administration.

50. Any permanent or long-term changes are made and authorised by the Accountant or General Manager of Finance and Administration.

51. New and terminated staff records are established / removed according to GSE requirements.

Confidentiality and security

52. All payroll information is kept in a secure office.

53. Hard copy documents kept in locked filing cabinet with keys held by the General Manager of Finance and Administration.

54. Only authorised personnel are provided with access to payroll information.

55. Access to payroll systems only with usernames and passwords issued by the General Manager of Finance and Administration.

56. Backup data of all payroll records are kept off-site.

57. Payroll is processed in a secure room on the designated pay run days.

58. Payroll staff must not disclose payroll information to any unauthorised personnel including GSE staff, contractors, family and friends.

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