BSBFIM502: Comprehensive Payroll System Report for The Book Cafe Group

This report provides a comprehensive overview of a payroll system, specifically tailored for The Book Cafe Group, and addresses the BSBFIM502 unit. It begins by outlining the relevant legislation, including the Equality Act, Minimum Wage Payment Act, and Fair Work Act, emphasizing their importance in establishing an effective payroll system. The report then delves into the organization's practices and policies, such as investment schemes, employee development, and data verification. It details the steps involved in establishing a payroll system, including internal and external environmental factors, and the process of developing and reviewing policies, along with communication strategies. The report also covers the development and submission of a payroll security policy letter, the handling of allowances, and record management. Furthermore, it includes practical tasks such as processing new employees, addressing payroll discrepancies, and communicating with employees and senior staff through emails and simulation calls. Worksheets summarizing various payroll aspects are also included, providing a practical application of the concepts discussed.

BSBFIM502 MANAGE
PAYROLL (RELEASE 2)

TABLE OF CONTENTS
TASK 1............................................................................................................................................3
Payroll system..............................................................................................................................3
2. Organisation practice and policies...........................................................................................5
3. Steps to establish a payroll system..........................................................................................6
4. Develop and submit a policy letter..........................................................................................8
5. Claim for allowances...............................................................................................................8
6. Record management..............................................................................................................11
7. E-mail....................................................................................................................................13
TASK 2..........................................................................................................................................14
Part A.............................................................................................................................................14
1.Payroll data.............................................................................................................................14
2.Schedule:.................................................................................................................................19
Part B.............................................................................................................................................20
1 & 2. Discrepancies found in payroll register..........................................................................20
3. E-mail to payroll....................................................................................................................20
Part C.............................................................................................................................................20
1.E-mail to employee.................................................................................................................21
2. Simulation call with Employee..............................................................................................21
3. E-mail to senior......................................................................................................................22
TASK 3..........................................................................................................................................23
Part A.........................................................................................................................................23
Process new employee...............................................................................................................23
Part B.........................................................................................................................................24
Part C.........................................................................................................................................25
Summary Worksheets................................................................................................................25
Part D.........................................................................................................................................30
Summary Worksheets................................................................................................................30
REFERENCES..............................................................................................................................36

TASK 1
Payroll system
Legislation
Payroll system at The Book Cafe Group would support the legislation like equality
act, minimum wage payment act and the fair work act. All these are the key legislative
actions that are applicable over the business unit in against to deliver the effective payroll
systems. In Australia government hold a very strong legislative implications in context to the
payroll structure implemented in country. Legislative implications are an important part of
the payroll structure that can favour the business entity to empower the best level of business
growth and development perspective. Legislation is always an important and essential part of
the payroll structure and the different practices human resource professionals and team follow
in order to reach at the final objective (Malakhova And et.al., 2021). The payroll system is an
important part of the legislative requirement of the business enterprises that can be favoured
the overall growth and development possibilities of the business enterprises. This is
mandatory that the business enterprises deal with all this legislative requirements efficiently.
In a process of fulfilling and meeting up the payroll structure and system. All the three
legislation are necessary and mandatory in respect to the business enterprises that can
empower the organisation to approach the growth oriented possibilities in the best way
possible. Different legislation has different implications that are required for the human
resource team to mitigate and fulfil all the essential needs and requirements as business
enterprises.
One regulation
The fare work act is among a key legislative that implement in context to payroll
guidelines and implications of the business enterprises. This legislative implication would
allow the human resource team to strategically design the whole payroll calculation. This is
important and essential for the business unit to strategically design the entire payroll
evaluation aspect. This regulation would support the company to approach the payroll
structure of company in the best way possible (Kim and et.al., 2020). This can be done in
context to the business entity is such that the organisation can motivate the best level of

business practices that can cater to the maximum possible and potential financial outcome of
the entity. This financial regulation would certainly support the business entity to mitigate all
the payroll related needs and requirements of the business enterprises.
One standard
The minimum wage payment act is the standard wage rate that is applicable over the
business entity. The one standard is a minimum level of wage rate that needed to ensure by
the business entity. This would empower the business unit to provide a minimum level of
wage payment that can support the financial health of the employee’s part of the organisation
(Drake, 2019). This can certainly allow the business unit to establish the best level of
employee satisfaction in against to deliver the business operations of the entity. In any given
situation or circumstances this is a responsibility of the organisation to offer this minimum
level of wage and salary so that economic stability can be achieved by the company.
One code of practice
The payroll operations can be affected by the business entity payroll related practices.
The basic wage, HRA and such like code of practices significantly affect over the payroll
practices of the organisation.
2. Organisation practice and policies
The Book Cafe Group is a organisation that follow the practice of providing the
minimum level of wages to delegate the various business practices of the organisation. The
human resource team at the organisation also practice with the investment schemes. Company
with support and guidance of the human resource team would allow and support the employees
of company to direct towards an effective investment schemes. This would empower the human
resources at the organisation to delegate the potential sources are areas where the employees of
company can invest and earn heavy return in the investment made. This is an important part of
the scheme. Employees of company are getting the proper guidance about the possible ways and
approaches to maximise the financial outcome of the business enterprises (Tasnem, 2017). This
practice follows by the human resource team support and guides the better economic stability of
the work force. The human resource team also follow the practice of employee development in
which the human resources are guided to maximise the skills and abilities. This policy of

company has played a significant role in the overall growth and development of the human
resources associated with the business enterprises.
The human resource team also follow the practice of data verification. In this company
try to ensure the proper authenticity of the data and other personal information of the human
resources associated with the organisation. This makes it more significant for the human
resources of company to authorise the personal information. This make it more feasible for the
organisation and human resources associated with the organisation. Authorisation is another
policy that The Book Cafe Group follow which invlve more authority to the work force part of
the business entity. Processing of data is also a part of the practice or policy followed by the
business entity. This involves and requires effective way and approach to support the best
possible strategic direction and guidance for the human resources part of the business enterprises.
3. Steps to establish a payroll system
The payroll system is established with support of certain tools and techniques. This
involves well advanced information technology system. This guide the business unit to easily
identify an appropriate payroll structure.
Internal and external factor of organisation
Internal environment of company is very progressive in nature as the leadership of entity
support The Book Cafe Group to establish an effective payroll system. This whole system
effectively supports the business enterprise to approach all payroll like practices in the most
advanced way possible. Internal environment of company is also resource oriented that empower
the human resource to approach the entire practice of payroll in the best way possible. Resource
management of company is very progressive that always favour the business entity to deliver the
best level of payroll practices (Harriman, 2019). The internal environment of company is very
effective as it completely empower the business entity to support the best sense of payroll like
practices. The internal environment of the business entity is so much positive towards improving
and enhancing the capability and potential ability of the human resources associated with the
business organisation. Apart from this the recruitment practices of company there are other
policies like employee training and development performance based incentives also impact over
the payroll of human resources.
The external environment of the company such as political factor, economic factor, social
factor, technological factor, environment factor and legal factor also support the company to

channelize an effective payroll like practices. All this factors guide and support the business
entity to respectively support the organisation and business unit to deal effectively with the
payroll like services as a business unit.
Process of developing and reviewing policies
In process to develop the policies and process human resource team overlook all aspects
associated with the payroll like structure and practices. The process is to research all different
areas and aspects associated with the payroll practice company is planning to adopt. Also the
approach is taken as applying necessary strategies to strengthen the entire practice of payroll.
Employee feedback are also taken by the professional while discussing over the process and
policies related to payroll (McGill, 2017). This is mandatory and supports the company to make
it more advanced and healthy as a business unit to implement the payroll like practices. In the
end communication with all employees are also done over the registered email of each employee
part of the organisation.
Communication
Communication is always an essential requirement of every single process or practice
adopted by the business unit. Every stage that could hold some level of modification is
communicated with the human resources associated with the organisation. As the payroll is
directly linked with the employees and human resources part of the company so this make it
more significant for the work force to strategically communicate with all human resource about
any change at each stage through email. Stakeholders are also involved that can provide an
important contribution about the payroll like guidelines. This makes it more significant for the
business entity to communicate and guide with employees about the payroll practices and its
associated modification.
Organisational and legislative requirements met
The organisation and legislative requirements are essential and mandatory in nature to
meet and fulfil as a business unit. The legislative requirements related to payroll are associated
with the minimum wage payment law and other such mandatory legislations. All this allow the
business entity to meet over a mandatory basis. This make it more significant for the business
unit to adopt this practice where company get to deliver all its payroll amendments as per the
laws and legal regulations (Angye, 2018). The organisation and legislative requirements are
mandatory in nature that always favours the business unit to fulfil and meet. This make it more

authentic to fulfil all legislative needs that organisation require to meet as a business unit. The
legislative process should involve all aspects of payroll the salary structure, designated post of
the human resource, minimum wage rule and other such strategies. The payroll allocated by
other companies in the market is also considered while finalise the payroll of the human
resources at the organisation.
Policies and procedures
The organisation and legislative requirements are mandatory to meet by the business
enterprises. This is important for the business unit to fulfil and mitigate all policy and procedure
related need and requirements of the business unit. Payroll is a legislative function that in any
given situation requires meeting by the business entity (AlSheibani, Messom and Cheung, 2020).
The policy related to minimum wage payment, fairness in employment and other such equality
and many other are needed to fulfil by the business entity to mitigate so that overall objectives of
the human resource team could have been meet by the business entity. The procedure followed at
the Book Cafe Group is all about communicating about all aspects of modification in the payroll.
This is essential for the organisation to communicate with the human resources about any
procedural change adopted by the business unit.
Monitoring compliances
The monitoring is very important for the business entity to comply in respect to the
payroll related practices. Monitoring compliance are very essential as the business unit needed to
monitor every modification in such manner that organisation can fulfil all areas of the legislative
need. When it comes to payroll like operations this is important that the business unit also ensure
the proper payroll like functions so that best level of functional and objectives for the payroll
could achieve by the entity. Monitoring compliances are fulfilled by the human resource team at
The Book Cafe Group.
4. Develop and submit a policy letter
Payroll security Policy and Procedure
The payroll is a legislative right of every employee at work place. The payroll
security is all about entitled the work force with the respective revenue so that employee of
the company gets to fulfil all necessary and mandatory requirements of the payroll. The
payroll related information are also secured in the company system so that mitigation about
the data protection and safety act can also done (Payne and Morgan, 2020). This is important

for The Book Cafe Group that it mitigates the data safety norms so that all legislative
requirements are meet. This is ensuring to every employee of The Book Cafe Group that all
norms regarding data protection and safety are fulfilled by the company. The process related
to documentation is also meet by the company so that most effective structure can be
channelizes for the payroll practices of the business entity.
5. Claim for allowances
Tabular computation
Allowance particulars Rate
Split shift $5.39 for every 2 hours of work put in more
Meal $14.79 for every meal taken
Protective clothing Cost reimbursement in full
Laundry Cost reimbursement in full
Special clothing Cost reimbursement for coats, dress and caps
in winter season
Allowance for tool- apprentice cooks and
cooks
$1.82 every day or allowance of $8.92 weekly
Equipment and tools Cost reimbursement of towels, tools, material
and utensils etc.
Working from workplace usual (time of
travel)
Payment on pay rate which is common
according to industry parameters.
Working from workplace usual (country
travel work which involves travel of more
than 80 km)
Transport payment which is to and from the
work place
Apprentice training costs of textbooks /fees Cost reimbursement (textbooks which have
been prescribed for training)
Release training blocked by travel of
apprentice
Excess travel costs which are reasonable to be
reimbursed.

Claim of allowance to be included in payroll
Allowance receipt does not give employees entitlement for a deduction. It shall fall in these
categories:
a) Amount which is assessable in full with deduction that can be allowed, which shall
depend on individual circumstances (Rahul and Keerthi, 2018).
b) Amount assessable in full with no deduction even when allowance is received.
c) Amount assessable to employee with deduction allowed for expenses according to rules
of substantiation.
Allowance amounts have been considered reasonable in the following categories by the
commissioner of taxation in the ruling as follows:
a) Overtime expenses of meal
b) Travel expense of domestic work
c) Travel expenses of overseas.
Allowances which are received in common are as follows:
a) Fare allowance: Deduction is allowed for transport expenses which are related to
work being incurred with connection to allowance.
b) Overtime expenses of meal: Deduction will be allowed for expenses which were
incurred where meal allowance was paid overtime under industrial law (Rahul
and Keerthi, 2018).
c) Tool allowance: Allowance shall be paid weekly to employees who are weekly
employed and will be providing self-tools under the industrial award.

6. Record management
Employer has to keep payroll records which contain information about the employees and the
record of hours put in by the employee.
Type of payroll information
There are information needs which have to be kept for every employee. If employee is paid
annual wage under award, employers have a requirement for keeping them for those employees
(Rusly and et.al., 2019).
This is a list of records employer has to keep and the information in the record:
General
 Employer name
 Employee’s name
 Employee’s joining date
 Employer’s ABN
 Employee details whether working full time or part time
 Job nature of employee whether permanent or temporary.
Payment
 Payment rate given to employee
 Gross salary and net salary
 Deduction from gross salary
 Details of incentive structure, bonus, gratuity and other monetary benefits (Rawling and
Schofield-Georgeson, 2019).
Hours of work
Overtime for exceeding working hours which includes:
 Number of hours worked overtime by employee during day
 As and when employee began hours of overtime and finished them
 Hours put in by part time employee and payment is based on hours worked
 Copy of agreement which states number of working hours.

Leave
 Leave agreement when employee joins
 Amount of leave employee has.
 On cashing of annual leave, record has to be kept of the same and payment made.
How information can be kept safe
 Information has to be maintained in both physical as well as in soft copy.
 The files have to be maintained in cupboards free of termites and should be cleaned for
dust removal frequently.
 Soft copy has to be maintained in folders named as per heading and date to be easy for
locating and all folders to be kept in a central folder (Rawling and Schofield-Georgeson,
2019).
Way of documentation
They should be legible in reading.
They should be in English which is common to understand.
They have to be ready for inspection for Fair work Inspector.
They should not be false or one which mislead data.
Changes cannot be done unless change is for error correction.
Timeline for record keeping
Employers have to keep the records of time and wages for 7 years.
Four acts which safeguard documentation control
Evidence Act
The Act of 1995 gives definition of documents, inclusion of records which can be taken for

evidence in court of commonwealth.
Electronic Transactions Act
The Act of 1999 gives encouragement to business online for assuring the electronic format does
not stands invalidated (Rusly and et.al., 2019).
Australian Information Commissioner Act
The act of 2010 had established OAIC which safeguards document and information functions.
Privacy act
The act regulates personal information of government agencies and range of private and not for
profit organisation.
7. E-mail
To: finance@ Book Café.com
Subject: Procedures of implementation of payroll requirements,
Dear Sir,
This mail informs about the assessment undertaken by our team in forming of payroll structure
which can be followed in the organisation. The relevant legislations and standards of the
structure have been laid out. Organisational policies and procedures relevant to our organisation
have been discussed in detail specialising on the important points. Review of the organisational
environment has been done in an attachment of procedure for establishment of payroll system.
Compliance monitoring systems have been included in the same. The policies have been made
according to the legislative requirements of our organisation. Payroll security and Procedure
which ensures employee payroll information security has been attached with the mail. A tabular
structure of suggested claim for allowances has been done and same has been referenced with