Payroll Management Policy
Version No.
Responsible Area
Owner/Author
Approved By
Approval Date
Next Review Date
Previous Review Dates
QAL-013
2
Finance
Group Financial Controller/Chief Financial Officer
Risk and Audit Committee
23 September 2014
23 September 2016
18 January 2012
Contents
1
Introduction / Background ................................................................................ 3
2
Scope / Purpose ................................................................................................. 4
3
Definitions.......................................................................................................... 4
4
Instructions ........................................................................................................ 5
4.1
4.1.1
4.1.2
4.1.3
4.1.4
4.1.5
4.1.6
4.1.7
4.2
4.2.1
4.2.2
4.3
4.3.1
4.3.2
4.3.3
4.3.4
4.3.5
5
Payroll Business Rules........................................................................................ 5
Confidentiality ................................................................................................ 5
Tax File Numbers (TFN) .................................................................................. 5
Bank Details and Changes .............................................................................. 6
Confirmation of Salaries................................................................................. 6
Duplicate Payment Summaries ...................................................................... 6
Payment of Claims ......................................................................................... 7
Pay Days, Deadlines and Termination Payments........................................... 7
New Staff ........................................................................................................... 7
New Staff – Casual, Fixed Term Contract, Permanent Full Time/Part Time .. 7
Essential Documentation for New Staff ......................................................... 8
Payment Rates ................................................................................................... 8
Rates of Pay .................................................................................................... 8
Employer Charges (on-costs) ......................................................................... 9
Lump Sum Payments...................................................................................... 9
Kilometre Reimbursements ........................................................................... 9
Other Incentives/Special Allowances ............................................................ 9
Leave Applications ........................................................................................... 10
5.1
5.2
6
Other Leave...................................................................................................... 10
Long Service Leave ........................................................................................... 10
Superannuation ............................................................................................... 10
6.1
7
Choice of fund .................................................................................................. 11
Incorrect payments.......................................................................................... 11
7.1
7.2
8
Underpayments ............................................................................................... 11
Overpayments ................................................................................................. 11
Terminations .................................................................................................... 12
8.1
8.2
9
Resignation ...................................................................................................... 12
Termination/Redundancies ............................................................................. 13
Salary account coding (business units) ............................................................ 13
10
Salary Packaging or Deductions ....................................................................... 13
11
Legislative Requirements................................................................................. 13
11.1
Time & Wage Records .................................................................................. 13
11.2
Payslips ......................................................................................................... 14
12
Payroll Officer Responsibilities ........................................................................ 14
13
Forms ............................................................................................................... 14
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1
Introduction / Background
Queensland Airports Limited (QAL) and related entities (excluding Aviex) has a
dedicated payroll office that is responsible for the payment of salaries and wages, and
the management of related functions. It provides a centralised, consistent approach
to the management and processing of all payroll related transactions for the duration
of a staff member's employment.
Payroll works closely with the Human Resources department (HR) and this document
should be read in conjunction with the Human Resource Policies and Procedures
manual located in the resources area of the intranet.
The Payroll Officer administers the payroll, employee and statutory deductions from
pays, remunerated benefits and answers queries. The Payroll Officer (within Finance)
is responsible for:
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the creation of new employees on the payroll system (HR & Payroll One);
processing payroll payments to all employees;
processing of employee salary packaging arrangements;
leave administration;
preparation and issue of Payment Summaries (Group Certificates);
deductions to external bodies, e.g. PAYG tax, superannuation, union fees,
garnishee debts;
issuing payslips and responding to payroll related enquiries;
arrangements for management approved payroll changes arising from pay
increments, enterprise agreement provisions; and changes to rosters;
managing overpayment procedures, and
processing of short term and long term incentives, where applicable.
Refer to ‘Roles & Responsibilities’ for additional information on responsibilities.
Payroll processes operate within a regulatory framework which is governed by ATO,
Fairwork, legislation, QAL’s internal control framework and direction from QAL senior
management.
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2 Scope / Purpose
This policy outlines the principles, process and procedures QAL employees are
required to observe in relation to payroll services. Compliance with the policy greatly
assists in ensuring timely and accurate payments.
QAL is committed to ensuring that employees are paid accurately, in a timely manner
and in accordance with relevant awards, Agreements and contracts of employment.
In addition, Managers require appropriate and timely information to ensure salary
expenditure for their area of responsibility is correct.
3 Definitions
For the purpose of this policy, the following definitions apply:
Term
Definition
ATO
Australian Taxation Office.
Casual
Employee
Casual employees are employed on an hourly or daily basis and
do not accrue sick/annual leave and do not have regular or
guaranteed hours of work.
Collective
Collective Agreement is the wage and working terms and
Agreement
conditions negotiated between QAL and its employees.
Employment
Employment refers to all persons gainfully employed by and
performing services for QAL and its entities.
Employee
Employees include all persons paid for personal services
performed including casual, part-time, full time and fixed term
contract employees.
Full-time
Full-time employees are defined to include those persons whose
employees
hours of work represent full-time employment of 38hrs per
week.
Full-time
Full-time equivalent (FTE) is a termed used to calculate the hours
equivalent
worked as a multiple of one full time 38hr per week employee.
Overpayment
Overpayment means a payment of wages for a pay period that
is greater than the amount earned for that same pay period.
Overtime Pay
Extra pay, beyond the regular pay, for work performed in excess
of ordinary work hours for non-exempt employees according to
EBA or State/Federal award.
Part-time
Part-time employees are those persons who work less than the
employees
standard number of hours for full-time work.
Part-time hours Part-time hours are the set ordinary hours for part-time
employees.
Pay
(Payroll) The two-week period, according to QAL’s fortnightly payroll
Period
schedule, for which employees receive wage payments.
Payday
The Tuesday following the end of the fortnightly payroll period.
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PAYG (Pay As Tax instalment deductions that are deducted from an
You Go)
employee’s gross pay by Payroll and paid to the ATO. The
amount deducted is shown in the Payment Summary issued
after the close of each financial year.
Payroll
Is the term used for the process of obtaining employee work and
wage information and processing in accordance with QAL
conditions and Accounting Standards with the aim of applying
statutory provisions and ensuring that employees are
compensated for the hours worked. It is jointly used as the
department name for where this process takes place.
Salary Sacrifice This allows a staff member to have certain payments deducted
from their gross salary, i.e. before the deduction of PAYG tax.
Superannuation Eligible employees receive compulsory superannuation
guarantee contributions (SGC) in line with statutory
requirements and the requirements of employment contracts.
Employees have a choice of funds or the QAL superfund can be
nominated.
TFN (Tax
A TFN is a personal number issued by the ATO on application by
File
an individual taxpayer. It is provided to Payroll by completing a
Number)
“Tax file number declaration” form obtainable from Payroll
Branch or HR.
4 Instructions
4.1
Payroll Business Rules
4.1.1
Confidentiality
The QAL payroll office holds sensitive records of a personal and financial nature
regarding all QAL employees. All employees within the payroll office are required to
maintain confidentiality (including within the Finance department) over this
information and must comply with these business rules. Access to this information
must be for genuine operational reasons and under no circumstances are employees
permitted to access any information on other employees for personal reasons. This
rule applies to all QAL employees.
4.1.2 Tax File Numbers (TFN)
By law, a TFN declaration must be submitted within 14 days of commencing
employment. Failure to supply a TFN declaration or a TFN obliges the company to
withhold tax from the employee’s pay at a higher rate determined by the ATO.
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For privacy reasons the employees of the Payroll Office will not disclose a TFN to
anyone over the telephone, by email or fax. If an employee wishes to obtain their
TFN from the Payroll Office, they should visit the office located in the QAL
Management Office with suitable identification (photo identification such as a Drivers
Licence or Passport is preferred). The completed Tax Declaration Form will be shown
to them so that they can write down the TFN number themselves. The Tax Declaration
Form will not be handed over or made available for copying.
For any employee that is unable to come to the Payroll Office, the Payroll Officer can
mail out the TFN to the home address once Payroll Branch is satisfied as to the
identification of the person and written authority is received (fax or emails are
acceptable). A faxed or emailed copy of a Drivers Licence or Passport is acceptable
for identification purposes for persons who have a genuine reason for being unable
to attend the office in person.
4.1.3 Bank Details and Changes
Employee wishing to amend payroll banking details, will be required to complete a
new ‘Banking Details’ form and provide the original to the Payroll Office. Email/faxed
notifications are permissible. Banking details will not be accepted over the telephone
as there is a greater risk for error and financial loss. Change of Banking Details forms
will need to be received in payroll five days prior to the end of the pay period for
inclusion in the current period. Any received outside of that date will not take effect
until the following pay period.
4.1.4 Confirmation of Salaries
Payroll information will not be provided to third parties (e.g. banks, mortgage lenders
etc) unless prior written approval has been provided by the employee to release such
information. The employee should name the institution(s) that will be making the
enquiry.
Official requests from Government Departments (e.g. Child Support Agency,
CENTRELINK) will be actioned directly with the relevant department.
4.1.5 Duplicate Payment Summaries
Requests for duplicate Payment Summaries should be made in writing and will be
provided electronically via the employee’s nominated email address or can be mailed
to the employee’s home address. Payment Summaries can be mailed to a third party
(e.g. accountant) with the employee’s written consent.
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4.1.6 Payment of Claims
Claims for payment (casual hours, overtime, motor vehicle travel etc) will only be
processed on original, correctly authorised documentation.
4.1.7 Pay Days, Deadlines and Termination Payments
QAL pays fortnightly in arrears and pays are sent to the bank on Tuesday after the pay
period ends.
The following deadlines apply for payments to be made in any given payment run,
relevant paperwork must be complete for the deadline to be met.
COB Thursday before the end of a pay period:
 new starter forms (included all relevant ATO and superannuation
information);
 terminations information;
 salary sacrifice calculations; and
 changes to bank accounts or other personal details.
Monday after the end of the pay period:
 10:00am Mileage Claims, Leave forms or variations; and
 12:00pm Timesheets.
From time to time, due to public holidays (eg Christmas break), there may be changes
to these deadlines, all senior managers will be notified of this change via QAL
broadcast email. The senior managers are required to relay this message to the
relevant personnel within their teams.
Any payments required where information is submitted outside this deadlines will be
paid in the payments for the next pay period.
4.2 New Staff
The Employee’s Manager is to ensure that a new employee completes all relevant
payroll forms as set out in 4.2.2 ‘Essential Documentation for New Staff’ and that their
contract is signed in a timely manner and forwarded to HR as above.
4.2.1 New Staff – Casual, Fixed Term Contract, Permanent Full
Time/Part Time
Business unit managers will liaise with HR regarding the creation of contracts for new
continuing employees. Once the individual has agreed on terms and signed their
contract the information is forwarded to HR. After verification, it is then forwarded
onto the Payroll Office to create the employee, assign an employee number and
commence payments.
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4.2.2 Essential Documentation for New Staff
HR will send an email notification to the following departments when an employee
commences with the QAL Group: Finance One Systems Administrator, Payroll and the
IT Help Desk.
Before a new employee can be paid they must complete the following payroll forms
either on the day of, or prior to, commencement:
 signed Letter of Offer;
 payroll Personal Details form;
 Tax File Number (TFN) Declaration form (NAT3092);
 Superannuation Choice of Fund form (if applicable);
 Banking Details form;
 Salary Sacrifice Request form (if applicable); and
 AGH deductions form.
These should be sent to Human Resources (HR) by the next working day, along with a
signed copy of the employee’s letter of offer.
When approved, HR will send the paperwork to Payroll for processing.
4.3 Payment Rates
4.3.1 Rates of Pay
Rates of pay will be determined depending on a number of factors. The business unit
together with HR have the responsibility of understanding and appropriately applying
remuneration, whether as a result of an Enterprise Agreement, contract or other
negotiation. The payroll office will use the rate from Schedule 1 of the Letter of Offer
to calculate future pay or until otherwise advised.
Bonus payments and Short/long term incentives payments will be made in the next
available payment run following receipt of direction from HR, which should include a
copy of the relevant delegated approval for making such payment.
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4.3.2 Employer Charges (on-costs)
In addition to salary rates for employees, state & federal statutory employer charges
are levied to the employees cost centre. These employer charges include:
 Superannuation;
 payroll tax;
 Work Cover; and
 parental leave.
4.3.3 Lump Sum Payments
All lump sum payments must be authorised by the appropriate manager and advised
to Payroll in the timeframes stipulated in 4.1.7.
4.3.4 Kilometre Reimbursements
All expenses are paid at the rates published on the ATO website (these are updated
annually).
An employee who has motor vehicle expenses to claim must:
 Complete a Kilometre Claim form, including number of kilometres travelled
(see Forms);
 have the form approved by his or her Manager; and
 send the form to payroll in line with the deadline above.
Payment (as at 30 June 2014) is to be made to the employee as a non-taxable
allowance through the Payroll system.
The ATO requires kilometre reimbursement to be included on a staff member’s
Payment Summary (previously known as Group Certificate).
Kilometre reimbursements are costed to the respective Business Unit’s cost centre.
Staff travellers are not permitted to gain financially from employment travel. The
most cost effective and appropriate mode of transport should be taken. For example,
the lesser of an airfare or kilometre reimbursement will be approved. Refer to the
Group’s Travel and Entertainment policy.
4.3.5 Other Incentives/Special Allowances
Employees may be entitled to ‘other’ incentives and special allowances such as:
 Additional excess baggage handling incentive.
Where an entitlement exists, the following process will occur:
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5
Business unit manager prepares payment schedule;
Payment schedule sent to relevant General Manager for review and
approval;
Approved payment schedule then sent to Payroll; and
Payroll processes in next available pay run.
Leave Applications
Once a leave application has been submitted and approved by the supervisor, it
cannot be changed or cancelled unless a new Leave Request Form is completed or the
employee’s supervisor formally advises Payroll. To make an amendment or
cancellation, the leave form must be submitted to Payroll within the timeframe
stipulated in 4.1.7. The form is obtainable from QAL intranet Resource Centre.
After taking sick leave, employees must fill out a Leave form (see Forms).
If a medical certificate has been obtained, this must be appended to the back of the
form. Medical certificates are required under certain conditions as outlined in the
Human Resource Policies and Procedures.
5.1
Other Leave
Under the conditions of your contract you may be entitled to other leave such as
parental leave, unpaid leave, leaves of absence. Please refer to the QAL Human
Resource Policies and Procedures Version Number: 2.0 manual located in the
resources area of the intranet.
5.2
Long Service Leave
Under provisions of the Fair Work Act 2009, employees are granted an additional
entitlement in recognition of a long period of service. Calculations for long service
leave can be obtained using information from the Fairwork website
www.fairwork.gov.au.
6
Superannuation
Under the Australian Government’s superannuation guarantee contribution (SGC)
scheme specified employer contributions to an employee’s superannuation fund are
guaranteed by law.
 The current superannuation guarantee contribution is a statutory percentage
of Ordinary Time Earnings.
 It is the responsibility of the Human Resources Department to ensure that
each employee is aware of the occupational superannuation. The QAL Group
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will ensure that the appropriate payments are contributed to the fund on the
employee’s behalf, as per this legislation.
6.1
Choice of fund
The QAL Group’s default SGC scheme is Sunsuper Solutions, employees have the right
to elect to contribute their superannuation contributions to another valid
superannuation scheme.
Upon an employee commencing employment:
 HR will provide the employee with a ‘Superannuation Choice of Fund’ form
(NAT 13080; see Forms).
 Employees who choose a different fund must within 28 days of commencing
employment complete the NAT 13080 form.
Upon receipt of these details and advice that an account has been established with
the relevant fund, QAL Group undertakes to contribute an amount as established by
relevant legislation, to the fund on behalf of the employee.
Notes
i. More information about which employees are eligible for superannuation
fund choice may be found at www.asic.gov.au/superchoice.
ii. If adequate information is not received from the employee by Payroll when
payments are due to be made, QAL Group will contribute an employee’s
superannuation contribution to Sunsuper Solutions.
7
Incorrect payments
Employees should contact the Payroll Officer should an incorrect salary payment be
identified.
7.1
Underpayments
Payroll will calculate any back pay or underpayment owing and this will be checked
by the Group Financial Controller prior to payment. The payment will then be paid in
the next pay run, or as agreed by HR / Group Financial Controller.
7.2
Overpayments
In situations where an overpayment has occurred, the manager is to discuss the issue
and the repayment options with the employee. Once agreement is reached a
repayment schedule is to be communicated to payroll. If the debt is not re-paid within
2 weeks, QAL may deduct the amount from the employee’s next payment. A copy of
all documentation relating to the overpayment is kept in the employee’s personnel
file. In addition, the employee’s manager is also notified. If the matter remains
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unresolved, it may be referred to the Collections Officer who may resort to legal
measures to recover the debt.
Approval for overpayment collection:
 Payroll will calculate the overpayment and the Group Financial Controller will
check the calculation.
 The employee will be notified of the overpayment and a re-payment plan will be
agreed to and confirmed in writing.
8
Terminations
All notices of retirements, resignations, redundancies and terminations must be
acknowledged by the appropriate manager and forwarded to HR, who will in turn
advise the Payroll Office for the calculation of termination benefits. Failure to advise
Payroll in a timely manner may lead to an overpayment of salary which the cost centre
will have to expense until the debt is recovered.
Deadlines in respect of payments for terminations are outlined in point 4.
It is the responsibility of Payroll to administer payments upon termination. It is the
responsibility of the manager to provide the required information in a timely manner.
Payment for all terminations is to be in the next payment run after the employee’s
last day and information deadlines are met, or as otherwise agreed with HR Manager
and Group Financial Controller.
8.1
Resignation
After a manager receives either verbal or written notification of a resignation:
1. Manager will notify HR and send a copy of the resignation letter and
required documentation.
2. HR will then forward on to Payroll the resignation letter and any other
appropriate advice.
3. Manager will complete a Payroll Leave form and send to HR once the
manager is satisfied that all company property issued to the employee
has been returned.
4. On the employee’s last day, the manager is to send any final hours to be
paid with the termination pay to Payroll and advise of there are any
deductions that are to be made from the final payment.
5. Payroll will make final payments by EFT into the employee’s nominated
bank account.
6. The final payslip will be emailed or posted to the employee after
payment has been made.
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8.2
Termination/Redundancies
In the event of a termination or redundancy
1. The employing manager is to notify HR and Payroll, as soon as possible,
of any terminations or redundancies;
2. In liaison with the employing manager, HR are to advise Payroll of any
special payments that may need to be paid (such as those in lieu of
notice or for redundancy);
3. pay calculation to be checked by the Payroll Officer and the Group
Financial Controller prior to payment;
4. payment is made to the employee’s nominated bank account, unless
otherwise instructed by HR, and
9
Salary account coding (business units)
Where changes are required to an employee’s business unit or profit centre, advice
should be forwarded to the Payroll Office by the authorised signatory. The change
will be made from the next available pay period. The responsibility for back-dated
transfers is with the business unit.
Employee costs cannot be split across companies or profit centres by Payroll. Any
requirements to re-charge or allocate employee expenses across multiple companies
or profit centres are to be processed through Accounts Receivable.
10
Salary Packaging or Deductions
Salary packaging is permitted in line with the QAL Group Human Resource Policies and
Procedures. Please refer to that policy guidance, entitlement criteria and procedural
information.
11
Legislative Requirements
11.1
Time & Wage Records
QAL Group will maintain information in accordance with the Fair Work Act 2009 and
Fair Work Regulations 2009, which require employers to keep accurate and complete
records for all employees and to issue pay slips to each employee.
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11.2
Payslips
Under the Fair Work Act 2009 and Fair Work Regulations 2009, the Company must
issue a written payslip, containing certain required information (listed below) to each
worker within one day of payment of wages and in electronic form or hard copy.
Queries in relation to Payments, salary information (with the exception of leave
balances) must be forward to the General Manager of HR, via completion of a pay
query form. Leave balance requests can be made via email by employees and their
managers to the Payroll Officer, who will respond within seven (7) days.
12
Payroll Officer Responsibilities
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13
Creation of new employees on the payroll system (HR & Payroll One);
Processing payroll payments to all employees;
Processing of employee salary packaging arrangements;
Leave administration;
Preparation and issue of Payment Summaries (Group Certificates);
Deductions to external bodies, e.g. PAYG tax, superannuation, union fees, garnishee
debts;
Issuing payslips and responding to payroll related enquiries;
Arrangements for management approved payroll changes arising from pay
increments, enterprise agreement provisions; and changes to rosters;
Managing overpayment procedures, and
Processing of short term and long term incentives, where applicable.
Forms
Available from the Resources area on the intranet:
 Kilometre & Travel Claim Form;
 Payroll Deduction Authority;
 Employee Variation;
 Salary Sacrifice Request;
 Leave Request;
 Timesheets; and
 Payroll Banking Details;
 AGH deductions payments.
 Payroll Personal Details;
Available in ‘new starter pack’ direct from HR/Payroll:
 Townsville Airport Staff Social Club (TSV staff only);
 Tax File Number Declaration (NAT 3092); and
 Superannuation Choice of Fund (NAT 13080).
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