• PART A: PROJECT PROPOSAL
• Name and background of Organisation:
• Plan4Wealth Pty Ltd
• Plan4Wealth is a boutique Financial Planning practice who work with people to help them understand their overall financial goals, develop comprehensive strategies to help them achieve them and work with them year after year to ensure their goals are met.
  
  
• The practice currently employs 11 staff which include 6 Authorised Representatives (financial planners) and 4 administration staff.
  
  Plan4Wealth have offices located in Boronia, Moe and Pakenham (head office)
• What Industrial awards and/or contract information will be used to calculate gross pay and annual salaries?
• Bank Finance and Insurance Award 2010 – Modern Award Number MA000019
• This award covers employers throughout Australia who are work in the banking, finance and insurance industry.
• Outline government legislation that the organisation must follow when managing payroll:
• Effective 1st July 2009, most employers in Australia are governed by the Fair Work Act 2009.
• 
  For how long must financial records be kept?
  Under the Fair Work Act 2009, employers must maintain accurate and complete records for a period of 7 years.
• Section
  
  
• PART B: PAYROLL SERVICES ORIENTATION AND PROCEDURES MANUAL
• Section 1: Payroll service orientation
• Brief overview of the payroll system
• Plan4Wealth currently use MYOB which allows them to:-
• An overview of the payroll software
• The software also works out the state (payroll) tax for the business and generates reports as required.     Payment Summaries are generated and submitted within minutes at the end of each financial year.
• MYOB calculates and records employee leave statuses and balances. The software automatically accrues and manages annual leave, sick leave, long service leave, rostered days off and time in lieu, then deducts that time as employees use it.
• Reports are generated with ease and within minutes.
• An overview of the roles and responsibilities of the staff involved with processing and managing the payroll at Plan4Wealth.
• The Office Manager oversees the day to day record keeping in respect to employees records which includes the completion of all new employee documentation, taxation forms, leave forms and time sheets.
• Each fortnight, employees are to hand their respective time-sheets to the Office Manager for approval. Once their respective time-sheets have been authorised, they are placed into the bookkeepers’ in-tray for processing.
• In the event of an employee taking time off due to sick leave (including carers leave) they are to complete the relevant Leave Form and give to the Office Manager within 24 hours of returning to work.
• Requests for annual leave (including long service leave) are made via the appropriate Leave Form and again submitted to the Office Manager for approval.
• The bookkeeper at Plan4Weath is the person responsible for entering data into MYOB from employee time-sheets and Leave Forms. Pay-slips are also generated by the bookkeeper and emailed to employees for their reference.
• PART B: PAYROLL SERVICES ORIENTATION AND PROCEDURES
  MANUAL
  
  
• Section 1

• Manage accounting, GST & BAS
• Flexible payroll with timesheets and leave loading
• Manage inventory and bill for your time
• Save data to cloud or desktop

MYOB enables Plan4Wealth to calculate accurate employee tax (PAYG), superannuation and leave entitlements.

1. A description of the procedures for administering payroll records

• Administering of the pay roll record first involves obtaining an employee identification number which is unique for an individual employee in the organizations. After filling the employee identification number the next step involves taking care of the employee paper work. This is where the employee qualification is considered during the entering of the information. In order to accomplish this task the employee needs to bring his or her qualification details. After determination of the qualification of the employee the next step involves deciding on the pay period of the employee. In this case the pay period should be determined using the various established rules and regulation governing the employment contracts. Following the determination of the pay period the next step involve choosing a payroll system, which in this case is the MYOB system. Once all the information is collected the last step involves running of the payroll system.

1. an overview of internal control systems to ensure efficiency

• In order to implement an effective payroll system it is important for the management of the Plan4Wealth Company to ensure that factors all the internal control. First the management must ensure that they consider all the available resources in the organization. In this case the availability of the resource can help to support the implementation of the payroll software. In relation to this it is important for the management to consider the already available labor who can allow smooth implementation of the payroll system. Timing is another important factor that the management needs to consider when implementing new payroll system. In this case it is important for the management to ensure that they implement the new pay system at the beginning of the year. Implementing the payroll can help to ensure that there is zero balance in the system and therefore facilitate smooth transitions into the payroll system. The integrating capability of the software with regard to the human resource strategies should also be considered. Proper integration of the new payroll software can help to ensure that there is no duplication of the data, and the human resource manager has less paper work to do with regard to employee payment. In addition, the new system should also include the concept of employee self-service where it can allow them to access their own payroll information. Most importantly the human resource managers should ensure that system implemented is complete, accurate and facilitate prompt payment of pay and deduction.

1. An overview of risk management strategies

• Various potential risks are found in the payroll environment they include error of overpayment or underpayment. The management of the company therefore needs to implement various strategies to help deal with these risks. In this case the management must ensure that they equip the personnel manager with the necessary skills needed to manage the payroll system. This can facilitate lowering of the errors related to over payment or underpayment of the employee. Improvement of the payroll process is another major risk management strategies that the management can use. This can in turn help to reduce the delay in the payroll processing.
• Another major risk management strategies that the management needs to implement is improving on the payroll communication within the organization. In this case improving on communication can help to ensure that the management is aware of the presence of any inconsistency practice in the payment. In addition improvement of communication can help the management to indentify the employees who are dissatisfied with payment system used in an organization. Implementation of the current technology, in the management can help to prevent corruption of data, inaccurate management of report, programming and processing errors. Increasing the security of the data can also help reduce the loss or unauthorized flow of information in the organizations. Finally it is important for the management put measure in order to prevent the fraud risk from the employee. Preventing of the fraud can help to reduce incidences where payment to non-existence employee or the retention of the terminated employee on the system.
• Establishing an effective risk management process require that the management implements a coordinated framework of outlining their approach of managing risk. It is important for the management to ensure that they undertake an assessment risk that clearly outlines the key activities in the risk management. The management should also ensure that they indentify the key risk associated with overpayment, frauds among other risks before implementing the new payroll system. In addition, the management should customize the pay delivery for the various employees in the organization. This implies that the pay delivery system used should ensure that it cover for all the groups that are available in the organization. Organization culture should also be considered in the implementation of the new payroll system. This can help to ensure that the new payroll system is integrated with the organization culture and therefore prevents resistance from the employee.
• Section 2: Payroll service procedure
• 10. Confidentiality of payroll information
  Confidentiality of the information in the payroll involves protecting the financial data used in the payroll. Employee confidential information includes the name, address, social security details, data of birth, and mandatory deductions among others. The confidential information is important since leakage of such information can compromise the financial status of the employee. In the situation where the employee discovers that he or she is paid a low salary one may become frustrated to continue working for the organization. In order to prevent the problems related to the leakage of the confidential information it is important for the management to ensure that only personnel manager in the organization handle the payroll information. When releasing the payroll information it is important for the person handling the payroll information to ensure that an employee gets access to only his or her own payment details. This can help to prevent leakage of the payroll information of other employee. Hard copies of the information should be stored in the secure place to avoid the leakage of the information. It is also important for the management to ensure that the stress to the new employee joining the company the importance of keeping their payroll information secret.
• 11. Security of payroll information
• Security of the payroll information is a key concern in any organization. In this case the management of the Plan4Wealtth needs to ensure that the physical layout of the payroll department needs to provide maximum security with regard to the payroll information. While arranging the pay department the management should ensure that the computer screen are not visible from the door side by those walking nearby. In relation to this the payroll document should be kept in lockable cabinet. The management also needs to limit the access of the payroll information from the external sources. This is because the leakage of the payroll information to the external sources may open a potential breach. Standard system of accessing the information should be established in an organization. Moreover since majority of the payroll information is handled electronically there is need for the management of the organization to establish a firewall to protect to the computer system and the databases. However, in order to ensure that the security of the payroll is kept as secretive as possible it is important for the management to ensure that they conduct training to their employee. This can help to equip the payroll manager and other employees in the organization with technique of maintaining security in the workplace.
• 12. Accuracy of salary payments
• The payroll represents one of the largest expenses in an organization. Establishment of the payroll policy is therefore necessary in providing internal checks and balances in order to protect this expense. Accuracy of the payment needs to be emphasized during the implementation of the new payment system. This can help to reduce the incidences of errors and fraud. The payroll system implemented should guarantee employee in an organization that they will receive their pay at the right time. In addition the payroll system implemented should ensure that it adheres to the various local and state laws that govern employment contracts. Compliance with the various legislations will help to ensure that the company does not face penalties from the local authorities.
• Accuracy in the salary payment can help to ensure that the employees are contented with the payment system that the organization uses. This is because accuracy in the payment ensures that the salary payment for the hours worked and that time and attendance in reporting is correct. This can also help to motivate the employee to continue working for the organization.
• 13. Accuracy of allowance claims
  Allowances are normally given in an organization to compensate the employee for a certain condition or qualification. The allowance in organization can be broadly be categorized into two major categories which include the allowance that is meant to compensate the actual expense incurred in an organization and those due to the nature or location of the work itself. According to the various rules that govern employment payment it is important for various organizations to include the allowance in the payment of an employee salary. In most cases the work related expenses are paid at the same rate with the ordinary weekly pay of the employee.
• When implementing of the new payroll system it is important for the management of the Plan4Wealtth to ensure that the new pay roll system exhibits accuracy in the calculation of the employee allowances. In this case the new payroll system needs to ensure that it incorporate all the allowances of the employee in the payroll. In addition, to the payroll system the management needs to incorporate data validation software. The incorporation of the data validation software can help to improve the accuracy of the allowance claims since it can be used to detect errors in record keeping.
• 14. Accuracy of statutory and voluntary deductions
• Statutory deduction refers to the various deduction that are required by law or regulation that is available in the country. The statutory deduction includes the income taxes, social security tax among others. Income tax in most of the organization is taken as the part of the payroll taxes. With regard to the income taxes the employers are required by the state and the federal government to withhold the amount from the employee. Voluntary deduction on the other hand refers to the deduction of from the salary that is authorized by the employee. The voluntary deduction includes the parking fee, health benefits, retirement plans among others
• During the implementation of the new payroll system the management needs to ensure that accuracy is maintained when carrying out these deductions. This can help to ensure that the employee do not suffer from over taxation. In relation to this it is important for the management to ensure that the new payroll system comply with the laid down rules and regulation governing employee deductions. In this case the new payroll deduction should ensure that the federal income tax complies with the withholding table released by the government. The social security tax withholding should be 6.2% of the annual employee income. In addition the medical tax withholding should be approximately 1.45% of the employee income.
• 15. Payroll data is calculated within designated timelines
• Timelines is an important aspect in the management of the payroll system. The management of Plan4Wealth should ensure that the new payroll system complies with the timeline according to the pay frequency. For instance when the payment is biweekly the management therefore needs to notify employee that the aught to receive their pay checks two times in a month. In relation to this it is also important for the management to ensure that they indicate to the employee the all the task included in the pay period. There is also need to make a yearly calendar that indicates the start and the end dates of the pay period throughout the year. After preparation of the pay frequency it is important for the personnel manager in charge of pay to print and disperse the calendars to managers and the supervisors. This help them to understand the various time frames that they will be paid and the amount.
• 16. Payroll is authorized and reconciled according to workplace policy
  Authorizing salaries and wages for payment
• After the calculation of the payroll information the next step involves authorization of salaries and wage of the payment. Once the payroll has been calculated the human resource manager plays a critical role in the authorizing of payment. After the authorization of the payment the next step involves carrying out the actual pay.
• Reconciling salaries, wages and deductions
• Reconciling the payroll is an important procedure in the establishment of the payroll system in organization. This is because it helps to detect the errors or omission and at the same time ensure that there is accuracy of deductions.
• Dealing with salaries, wages and related enquiries
• Once the payment is done it is important for the management of the organization to establish mechanisms that facilitate identification of payment related issues. Proper addressing of the grievances related to the pay can help to ensure that the entire workforces are contented with the new pay system in the organization.       
• 17. Payroll records are correctly administered, including procedures for:Declaration forms for new and existing employees are processed in accordance with ATO (Australian Taxation Office) requirements
  The various tax deduction are made accordance with the formula that is stipulated in the Australia Taxation Office. In order to facilitate tax deduction in an organization it is important for the employee to provide their tax file number to the employer. The form is normally obtained from the various new agencies or any branch of the Australian Taxation office. The management of the Plan4Wealth needs to ensure that they provide tax file number since failure to provide this file may result tax deduction of the employee at the highest rate.
• Timelines for periodic deductions are forwarded to nominated creditors
  The periodical deductions in the employee salary should be forwarded to the creditors as authorized by the employee. This can help to ensure that the employees are able to settle their debt. In this case the new payroll system should factor in these deductions in the employee salary.
• Payments to government authorities are prepared accurately and
  dispatched in accordance with the relevant government legislation
  The new payroll implemented should ensure that the all the payment are prepared accurately to avoid errors. Moreover the new payroll implemented should ensure that it follows the government legislations and hence ensure that the employee receive all his designated pay at the right time.
• Group tax amounts are calculated and payments made in
  accordance with taxation procedures
• The new payroll should also ensure that the group tax amounts are done according to the various taxation procedures. In this case the new payment procedure should ensure that equity is maintained in calculation of the group tax calculation.
• Employee Group Certificates are prepared and reconciled from salary records
  The employee group certificates refers to the document that helps to provide the details regarding the benefits provided to the employee under various group membership plan offered by the employers. This membership plan may include the group health coverage plans or a type of investment. During the preparation of the group certificate the management of Plan4Wealth should ensure that the certificate prepared include the details of the various financial information as stipulated in the salary records.