VALLEYVIEW AUTOMATED PAYROLL SYSTEM

VALLEYVIEW AUTOMATED PAYROLL SYSTEM ValleyView has purchased and custmised an autmated system t manage their payrll. This system is knwn as ValleyView Autmated Payrll System (VAPS). VAPS is used t recrd and prcess payrll fr all full-time, part-time, fixed-term cntract and casual staff emplyed by ValleyView. The fllwing functins must be perfrmed fr payrll data t be prcessed. PAY CALCULATION A pay calculatin is run every night t calculate any amendments that have been made t emplyee data. The updated cheque details can be viewed the next day. PAY CONFIRMATION The pay cnfirmatin will nrmally be run n the Friday befre payday. The pay cnfirmatin prcess is the final calculatin fr the frtnight and cnfirms payment details fr all emplyees. DIRECT DEPOSIT RECALLS A direct depsit recall invlves the request fr cancellatin f the direct depsit f an emplyee s net salary prir t being credited t the emplyee s nminated financial institutin. Such recalls shuld nly be requested t prevent an verpayment where the emplyee: is receiving wrker s cmpensatin payments is n extended leave withut pay has ceased emplyment will be verpaid mre than $250 r ne day s pay, whichever is greater. REPORTS PRODUCED BY VAPS Payrll audit trail reprt This reprt must be printed prir t the prcessing f each payrll run. It includes the fllwing items that must be checked carefully fr accuracy: hurs paid

hurly rate allwances deductins taxatin superannuatin. Payrll run cntrl reprt This reprt is an imprtant internal cntrl that plays an integral rle in preventing verpayments. This reprt shuld be run n pay cnfirmatin day r the day prir. It prvides payrll staff with an early pprtunity t detect and mdify payrll discrepancies prir t pay authrisatin. This reprt is an exceptin reprt that details grss pay and earnings types that exceed predetermined values. Payments appearing n this reprt shuld be prmptly investigated t ensure they are accurate. Over/underpayment summary reprt This reprt displays infrmatin n all utstanding ver/underpayments. ValleyView requires payrll staff t recver verpayments and expects staff t act t cmmence recvery within seven days. This reprt shuld be checked prir t pay cnfirmatin t allw fr a direct depsit recall where applicable. This reprt shuld be prduced and checked at least n a weekly basis. Payrll register reprt Payslips This reprt shuld be run the day after pay cnfirmatin. It lists the details f all ff-cycle and n-cycle payments t be made t all emplyees fr the pay perid. The details f each payment shuld be checked fr accuracy. If payment details are fund t be incrrect, it may be necessary t request a direct depsit recall. VAPS issues a payslip t all emplyees fr the prcessing pay perid. The fllwing details are cntained n each payslip: emplyee s name emplyee s jb classificatin under any award r agreement emplyee s jb title the date f the payment the perid f the payment the grss and net amunt f the payment details f any penalty rates (such as vertime) r ladings (such as shift wrk) applicable during the pay perid the current annual salary fr annual emplyees, r the current hurly rate fr fixed-term cntract r casual emplyees ValleyView Publishing 12 Muntain Drive, Jade Valley Victria 3999 2

any deductins made fr the pay, including: the amunt and purpse f each deductin the name and number f the fund r accunt where the deductins were paid superannuatin cntributins, including: the amunt f cntributins made under the Superannuatin Guarantee (Administratin) Act 1992 (Cwlth) the amunt f emplyee cntributins the name f the fund t which the cntributins were made. ValleyView Publishing 12 Muntain Drive, Jade Valley Victria 3999 3

VALLEYVIEW PAYROLL PROCEDURES CALCULATING PAYROLL Salaries are paid frtnightly in arrears. On alternate Wednesdays frtnightly salary is depsited int an emplyee s designated accunt. Salaries are autmatically calculated n VAPS using the fllwing frmulas: hurly rate Hurly rate = (annual salaries + annual allwances)/26.0893/76 hurs daily rate T calculate the daily rate f emplyees, multiply the emplyee s hurly rate by their standard daily hurs. The standard daily hurs fr a full-time staff member are 7.6. frtnightly rate An emplyee s frtnightly rate can be calculated using either: Hurly rate X the hurs wrked per frtnight OR (annual salary + annual allwances) / 26.0893 X time fractin. Nte: 26.0893 is the average number f frtnights in a calendar year ver a fur-year perid. VAPS determines an emplyee s frtnightly payment as fllws: the grss salary calculated using the abve frmula/s arrears amunts due are added where entitlements are prcessed after the effective date f the change (fr example, allwance entered, time fractin increased) utstanding verpayments are deducted tax is then calculated n the actual grss salary fr the frtnight accrding t the current tax deductin schedules and details recrded n VAPS (fr example, HECS) ther deductins, such as superannuatin, health fund and insurance cntributins, are then made t determine the emplyee s net salary the net salary is frwarded electrnically t the financial institutin/s nminated by the emplyee. Fllwing cnfirmatin f the payrll calculatin, each emplyee will receive a payslip. Refer t the reprts prduced by VAPS fr details f the cntents f payslips. Overpayments If an verpayment ccurs, an emplyee can prpse t repay the verpayment in tw ways: 1. by salary deductins the emplyee may chse the percentage f salary t be repaid 2. by persnal cheque. ValleyView Publishing 12 Muntain Drive, Jade Valley Victria 3999 4

Underpayments If an underpayment ccurs, an emplyee can receive payment in tw ways: 1. by direct credit t their accunt 2. by ValleyView cheque. New emplyees Pay calculatin will ccur with the nrmal pay run prvided emplyee data is crrectly input int VAPS within the required timelines. Ceasing emplyees Pay calculatin fr ceasing emplyees is t be cnducted manually and a ValleyView cheque issued with the apprpriate terminatin advice. TIMELINES FOR PROCESSING PAYROLL The fllwing timelines are t be fllwed when prcessing payrll. 1. All variatins t salaries (such as vertime payments r allwances) are t be input int VAPS by the Wednesday prir t pay cnfirmatin. 2. Pay cnfirmatin is t be run n the Friday befre each payday. Where the Friday is a public hliday, the pay cnfirmatin must be cmpleted n the earliest business day prir t the public hliday t ensure emplyees receive their salary n the designated day. Where payday falls n a public hliday, payrll prcesses and timelines must be apprpriately amended t ensure emplyees receive their salary n the earliest business day prir t the public hliday. 3. Salaries are t be credited t the emplyee s designated financial institutin electrnically n the Tuesday f each pay week t ensure salaries are available t emplyees n payday. 4. Staff ceasing emplyment shuld be paid n their last day f wrk with a cmpany cheque and apprpriate terminatin advice. The payrll ffice must receive the terminatin advice five wrking days prir t terminatin date fr pay t be crrectly calculated and a ValleyView cheque issued. Refer t the payrll calculatin prcedures t see hw salary is calculated. 5. All new staff will receive pr-rata salary n the designated payday prvided their details are put int VAPS by the Wednesday prir t pay cnfirmatin. If details are nt submitted, salary will be held ver until the fllwing pay perid. AUTHORISING PAYROLL Authrisatin f payrll data is the respnsibility f the Manager, Human Resurces and Finance. The Manager, Human Resurces and Finance may delegate the checking f figures t anther member f the department, hwever, ultimate respnsibility lies with this psitin. A Pay Cnfirmatin must be cmpleted and checked fr accuracy prir t prviding t the apprpriate persn fr authrisatin. The authrisatin cde must be put int VAPS fr the Pay Cnfirmatin t be finalised and payrll t be prcessed. ValleyView Publishing 12 Muntain Drive, Jade Valley Victria 3999 5

CHECKING PAYROLL The fllwing prcedures must be fllwed fr checking payrll. 1. Fllwing the authrisatin f payrll data, the Payrll Audit Trail Reprt must be printed and each f the fllwing items checked fr accuracy: hurs paid hurly rate allwances deductins taxatin superannuatin. If any errrs are fund in this reprt, crrectins shuld be made thrugh the adjustment entry prgram and the reprt shuld be rerun. Only after data has been cnfirmed shuld details be prcessed and the payrll updated. 2. The fllwing reprts must be checked fr accuracy prir t pay cnfirmatin day: ver/underpayment reprt payrll run cntrl reprt (this reprt may als be run n pay cnfirmatin day). 3. The fllwing reprt must be checked fr accuracy the day after pay cnfirmatin day: payrll register reprt. RECONCILING PAYROLL 1. The Accunts Clerk is respnsible fr recnciling the payrll clearing accunt at the end f each mnth. 2. The payrll clearing accunt must recncile with the general ledger accunt. 3. Where discrepancies arise, the payrll register reprt is t be checked against the pay cnfirmatin reprt. This shuld include a crsscheck f all payments made t emplyees. 4. The Manager, Human Resurces and Finance is t make regular checks n the recnciliatin prcess t ensure that checking and security prcedures are being crrectly fllwed and all accunts are being crrectly recnciled. STORAGE OF PAYROLL RECORDS The fllwing prcedures must be fllwed fr any payrll recrds prduced frm VAPS: ValleyView Publishing 12 Muntain Drive, Jade Valley Victria 3999 6

1. All reprts prduced in a paper frmat frm VAPS must be filed in a fireprf and secure filing system. 2. All reprts must be retained fr a perid f seven years. 3. Any reprts requiring archiving must be lcated in a fireprf and secure lcatin. SECURITY PROCEDURES T ensure the cntinued integrity f payrll data and the cnfidentiality f all emplyee infrmatin, the fllwing security prcedures must be fllwed by all emplyees when dealing with payrll related matters. 1. VAPS can nly be access by staff authrised by the Manager, Human Resurces and Finance. 2. VAPS is passwrd-prtected. It is essential that authrised users maintain the cnfidentiality f passwrds. Shuld a passwrd be frgtten, this must immediately be reprted t the Manager, Human Resurces and Finance wh will arrange fr a new passwrd t be issued. 3. Staff requesting payrll infrmatin can d s by submitting an email t the Accunts Clerk, wh will determine if the respnse is within the required guidelines. 4. Guidelines fr requesting payrll infrmatin Staff may request infrmatin nly abut their wn salary and leave entitlements. Staff must prvide their emplyee number upn requesting payrll infrmatin. Managers may request infrmatin abut the salary and leave entitlements f their staff nly if it is t be used fr the purpse f apprving leave r perfrmance reviews. The reasn fr the request must be clearly detailed. 5. All paper infrmatin relating t payrll, including payrll reprts, payslips and persnal infrmatin must be held in a secured filing system 6. Segregatin f duties fr checking, authrising and prcessing payrll is detailed under the prcedures fr Checking Payrll. 7. Details f all security measures must be included in the psitin descriptin f all payrll staff. 8. The Manager, Human Resurces and Finance is required t hld sixmnthly meetings with payrll staff t review existing security practices and t discuss any mdificatins that may be needed t existing practices. EMPLOYEE RECORDS ValleyView retains the fllwing infrmatin n all emplyees, which is stred securely either n VAPS r in a persnal file: emplyee s name and date f birth ValleyView Publishing 12 Muntain Drive, Jade Valley Victria 3999 7

date the emplyee began wrk with ValleyView pre-emplyment checks names f any federal awards r agreements that the emplyee has entitlements t emplyee s jb classificatin under any awards r agreements emplyment status full-time, part-time, casual, fixed-term cntract start and finishing times and hurs wrked each day vertime calculatin (if applicable) grss and net pay, including any deductins leave entitlements (such as annual, sick, carer s r study leave) leave accrued leave taken perfrmance reviews salary reviews superannuatin details (including the name f the superannuatin fund if nt the ne used by ValleyView) authrised payrll deductins (such as health fund, unins r inter-bank transfers) disciplinary reprts (if applicable) Tax File Number Declaratins general crrespndence. Maintenance f emplyee recrds The fllwing prcedures must be fllwed in relatin t emplyee recrds. 1. All wage and tax recrds (such as payment summaries, Tax File Number Declaratins) must be retained fr seven years. 2. All paper-based persnnel files must be retained in a fireprf and secure filing system. 3. Recrds relating t emplyees wh have ceased emplyment with ValleyView must be remved frm the current filing system and filed in the nn-current filing system. All wage and tax recrds relating t ceased emplyees must cntinue t be retained fr a perid f seven years. All nn-wage and tax recrds may be destryed after a perid f three years fllwing the cessatin f emplyment. New emplyees The fllwing prcedures must be fllwed fr new emplyees: 1. A Tax File Declaratin Frm must be cmpleted and sent t the Australian Taxatin Office within 14 days f cmmencement f emplyment. ValleyView Publishing 12 Muntain Drive, Jade Valley Victria 3999 8

2. All necessary details must be input int VAPS within the designated timelines t ensure the emplyee is crrectly paid. A frm detailing all necessary infrmatin shuld be sent t Human Resurces and Finance within the designated timelines. 3. A new persnnel file is t be pened. Ceasing emplyees The fllwing prcedures must be fllwed fr ceasing emplyees. 1. The apprpriate terminatin advice must be cmpleted and sent t the payrll ffice within the designated timelines t ensure the emplyee receives the crrect final payment. 2. The emplyee recrds n VAPS must be made inactive t ensure that the ceasing emplyee des nt receive any further salary. 3. The emplyee s persnnel file shuld be remved frm the current filing system and filed in the nn-current filing system. ValleyView Publishing 12 Muntain Drive, Jade Valley Victria 3999 9