View Document

Payroll Services Procedure

This is not a current document. To view the current version, click the 'Current Version' tab above.

Section 1 - Purpose / Objectives

(1) The purpose of this procedure is to:

  1. outline the principles, processes and procedures University employees are required to observe in relation to payroll services;
  2. assist in ensuring that University employees are paid in a timely manner and in accordance with relevant awards, enterprise agreements, contracts of employment and various legislative requirements including the ATO.
Top of Page

Section 2 - Scope / Application

(2) Victoria University's payroll system.

Top of Page

Section 3 - Definitions

(3) "Account code" — the cost number, which includes cost centre of the staff member.

(4) "Casual employee" — Professional staff engaged on a casual basis.

(5) "HR Zone" — the People and Culture employee self-service application at Victoria University that provides employees with viewing and updating access to their staffing information, leave and payroll claim submissions etc.

(6) "Off pay week" — the week prior to the actual pay day.

(7) "Offline EFT payment" — a payment outside the normal fortnightly payroll cycle.

(8) "P&C" — People and Culture.

(9) "Sessional employee" — Academic or VE staff engaged on a casual basis.

Top of Page

Section 4 - Policy Statement

(10) Nil

Top of Page

Section 5 - Procedures

Part A - Statement

(11) Payroll processes operate within a regulatory framework which is governed by audit requirements, legislation and direction from University senior management.

(12) The University operates on a fortnightly payroll cycle. Payment of staff is by way of electronic funds transfer (EFT) directly to the nominated accounts.

(13) The efficient processing of payroll related documentation relies upon timely and accurate submission of required and relevant data by supervisors/managers.

(14) Payroll documentation and claims must be approved in accordance with the People and Culture Delegations Policy .

Responsibility

Employee

(15) Employees are responsible for providing People and Culture with any variations that may have an effect on payroll processing and disbursement, (such as changes in address and personal circumstances which may affect deductions). Casual and sessional employees are also responsible for submitting pay claims, on a fortnightly basis, for approval by their supervisor authorised to approve payroll claims. Employees must ensure that their claims are submitted in accordance to timelines stipulated in Clause 16 of this Procedure, on various pay claim forms and which are specified on the People and Culture Intranet site.

Delegated officer (authorised supervisor)

(16) Supervisors authorised to approve payroll claims in accordance with the People and Culture Delegations Policy have the responsibility of approving and/or forwarding payroll claims to People and Culture in line with payroll deadlines. Where the immediate supervisor does not have the appropriate delegation to sign payroll claims, that supervisor should ensure claims are signed by a delegated officer before submission to People and Culture.

People and Culture

(17) People and Culture processes payroll claims in an accurate and timely manner and ensures the correct disbursement of salaries into nominated bank accounts.

(18) Payroll schemes, eg deduction schemes, will require a minimum number of 10 employees to participate before they will be established.

Part B - Procedures

Employment of Sessional and Casual Staff - Contracts

(19) All sessional and casual employees must be covered by a current Contract of Employment to enable payment of wages. Approved Contracts of Employment must reach P&C Business Services in People and Culture prior to the commencement date of an employee. Any salary payment for a sessional or casual employee cannot be processed until this form is received and entered into the Payroll system.

(20) The Contract of Employment must nominate a default account code to which salary costs will be charged. Sessional and Casual Contracts need to specify appropriate salary classification/rate of pay. Contract of Employment forms are available on the People and Culture Intranet site.

Employment of continuing and fixed term staff - Approval of Payroll Documentation

(21) Refer to: People and Culture Delegations Policy ; Recruitment and Selection Policy ; Recruitment and Selection Procedure.

Timelines & Pay Cycles - Submission of Payroll Documentation

(22) The University operates a fortnightly payroll cycle. Casual employees are required to submit their pay claim form to their supervisor on a fortnightly basis immediately following the completion of their normal fortnightly work period. Approved pay claims and all other payroll related variations/documentation must reach P&C Business Services by midday Tuesday in the off-pay week, i.e. the week prior to the actual pay day. The relevant payroll claim forms can be obtained from the People and Culture Intranet site or directly from P&C Business Services in People and Culture.

(23) Sessional employees are required to submit their pay claims via HR Zone for approval on a fortnightly basis immediately following the completion of their normal fortnightly work period.

(24) A complete list of payroll deadlines can be found on the People and Culture site on the University's intranet. It should be noted that there are some exceptions where payroll deadlines are brought forward due to public holidays.

Pay Advice Slips

(25) Pay advice slip information is available to be viewed and printed by employees on or after the actual pay day via the HR Zone. Hard copy pay advice slips are available for staff who do not have access to HR Zone upon written request to the Manager, Pay and Benefits in People and Culture. Care should be taken to ensure pay advice slip information is handled in a confidential manner.

Payment Summaries

(26) Previous and current financial year Payment Summaries can be printed via HR Zone. As per the Australian Taxation Office requirements, the current year's Payment Summaries are made available on HR Zone no later than 14 July of each year.

Bank Account Details

(27) The University's payroll system can accommodate up to a maximum of four bank accounts per employee, for salary payments. Existing employees are able to update their bank account details via HR Zone, alternatively Banking Authority forms are available on the People and Culture Intranet site. Full details must be supplied for all accounts as well as the nominated dollar amounts for the second and successive accounts. Where existing employees are using the Banking Authority form to nominate new account details there is a requirement to provide the previous account details for security reasons. The Banking Authority form may be completed electronically and emailed to: PC.Queries@vu.edu.au or signed hard copies forwarded to P&C Business Services in People and Culture.

(28) The option of multiple bank accounts is not available to casual and sessional staff.

(29) Employees are responsible for ensuring that the bank details they supply are correct.

Monthly Payroll Reports

(30) Payroll costing reports are distributed via e-mail to the relevant contact in each department together with a payroll report memorandum. These reports and memos are produced on a monthly basis, cover the pay periods that fall within that month and are distributed in the week following the last pay in the month. If it is found that an employee's default cost centre is incorrect and needs to be amended, a completed Account Code Amendment form should be completed and emailed to PC.Queries@vu.edu.au for action. A signed copy of the accompanying memorandum must also be returned via email to PC.Queries@vu.edu.au to satisfy University audit requirements. Managers/finance officers are required to sign and return these memos as evidence of a review of the accuracy of data captured in the reports and the identification of any amendments required.

(31) Non return of the signed memo will be followed up by P&C Business Services via the following steps:

  1. At the end of the month, following the distribution of the payroll reports, a reminder email will be sent to cost centre managers/finance officers who have not returned the signed memo.
  2. If the signed memo is still not returned within two weeks of the reminder, P&C Business Services will advise the supervisor of the cost centre manager/finance officer.
  3. Should the memo still not be returned, the Senior Executive responsible for that organisational unit will be notified.

Costing Variations

(32) Any changes required to an employee's default account code (cost number, which includes cost centre etc) should be noted on an Account Code Amendment form and forwarded to the PC.Queries@vu.edu.au for action. The effective date of the costing change must be indicated. Account Code Amendment forms are only to be used for fixed term and ongoing contract staff.

Requests for Offline Electronic Funds Transfer (EFT) Payments

(33) A supervisor who has the delegation to approve payroll claims may approve an Offline EFT payment outside the normal fortnightly payroll cycle. Such a request must be made to the Senior Payroll Officer or the Senior Payroll and Staffing Officer in People and Culture. The offline EFT payment will then be processed and will be available in the employee's bank account within 48 hours.

(34) Offline EFT payments will not be processed in advance ie will not be processed for work that has not yet been performed.

(35) In line with the University Fees Policy, a $100 administrative charge is applied to the cost centre of the department requesting the Offline EFT. If an offline EFT is required due to an error or oversight by People and Culture, the $100 administration charge is not applicable.

Adjustments to Salary

(36) Where a staff member's salary classification changes, the date of effect of the change will be considered the date of appointment for the purpose of determining the date of effect of any salary movement within the classification.

(37) Increases within a classification level will be made no later than the first payday on or after the date of the effect of the increase, provided that in the case of increases with effect from 1 January payment may be made on the first payday in February of the same calendar year.

(38) In the case of a change in salary due to promotion, change in classification or payment of a higher duties allowance, payment of salary at the adjusted rate will be made no later than the next payday provided related paperwork is received by P&C Business Services in line with the fortnightly payroll deadlines [as per clauses (18) and (20)].

Advance Payment of Salary

(39) Where a staff member is due to commence a period of maternity leave, adoption leave, long service leave, SSP leave, or annual leave in excess of two weeks/one fortnight, and the staff member requests advance payment for such leave, the University will pay the staff member in advance for up to twelve weeks of the period of leave, and may elect to make advanced payment for a longer period, provided that the staff member gives reasonable notice to the University — usually four weeks.

(40) The University will not provide advance payment under any other circumstance other than those stated above.

Replacement of Salary

(41) An underpayment to a staff member will be corrected with full payment after verification of the underpayment not later than the payday for the next pay period. At the request of the staff member, such payment will be made via an Offline EFT payment within two working days of notification. The $100 administrative charge will not be applied in such cases.

Deductions

(42) The University provides employees with an option of paying certain health insurance fees, university fitness centre fees etc through payroll deductions. Such arrangements may vary from time to time at the discretion of the University. Employees need to register with the relevant organisation before implementation of the deduction can occur. Commencement or changes to deductions cannot take place unless written authorisation is received by P&C Business Services in People and Culture.

(43) Superannuation deductions to default University superannuation schemes will be made on a fortnightly basis and in accordance with superannuation legislation. Eligible staff may also direct employer superannuation contributions to compliant choice of fund schemes providing all relevant forms have been completed and forwarded to P&C Business Services.

Annual Leave Loading

(44) Annual leave loading is paid to all eligible staff members in the first pay of December each year. The payment is based on the leave accrued within that calendar year, subject to a maximum threshold.

(45) In the event that a staff member ceases employment, the staff member will receive their annual leave loading based on annual leave accrued up to the last day of employment.

Top of Page

Section 6 - Guidelines

(46) Nil