In late 1997, agencies were requested to advise the Corporate Services Reform (CSR) Unit of Premier's Department of any particular areas of corporate services that could be more efficiently undertaken or areas that diverted corporate services staff from more strategic activities. One such area identified was the administration of SES remuneration. Smaller agencies in particular indicated difficulties.

CSR working with agencies and NSW Supply has established a contract as an optional cost effective alternative for SES payroll and packaging administration. The contract is now available for use at the option of each agency. A copy of the Summary of Essential Activities that formed the basis of the tender is attached for your information.

NSW Supply will manage the contract on behalf of the sector. PSMO will provide the supplier with relevant advice to ensure awareness of policy, procedural and remuneration changes and other matters impacting on the administration of SES remuneration packaging. Premier's Department will review the supplier's documentation to members of the SES prior to its distribution to ensure consistency with government policy.

Agencies adopting the contract will be responsible for management of the relationship with the service provider. Issues that cannot be resolved to the mutual satisfaction of the agency and the supplier should be referred to NSW Supply.

Inquiries regarding establishing an agency contract may be directed to Barry Crocker at NSW Supply on ph (02) 9372 7667. Elizabeth Coombs, Executive Director, Corporate Services Reform can be contacted for further information on Corporate Services Reform initiatives on ph (02) 9228 3096 or email [email protected]

Col Gellatly
Director-General

Annex A

SUMMARY OF ESSENTIAL ACTIVITIES
 
Information

• Provide Officers with information on benefit packaging and options and tax.
• Preparation and printing of information documentation
• Scenario modelling available to Officers - city and regional locations.
• Deliver information sessions for Officers on an ongoing basis - city and regional locations.
• HR Function to be executed by Agency and Data Sheet provided to supplier

___________________________________________________________ 

Package Administration

• Prepare draft of packaging arrangements for the Agency and the Officer's consideration/approval and signature ('Schedule C' of contract for SES)
• Obtain completed tax declaration and bank account advice forms from the Officer.
• Obtain details of pre-tax benefit types, post-tax deductions, banking arrangements, and any other relevant details/approvals from each Officer
• Provide for a minimum of 10 package changes per annum
  (to include SOORT determination variations, any Performance payment, Superannuation variation resulting from TRP variations, and Motor Vehicle variations)
• Maintain appropriate auditable documents

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Motor Vehicles

• Provide Motor vehicle costings (both estimates and final where relevant).
• Provide liaison with relevant fleet managers in respect of arrangements for leased motor vehicles, on behalf of Officers. Includes arranging for new/ replacement vehicles. 

___________________________________________________________ 

Superannuation

• Calculate salary, (notional and superable) and employer on-costs for SSS and SASS members
• Establish the Officer 's fund of choice for SGC contributions and the split between employer contributions and employee optional contributions.
• Remit superannuation as required
• Pay employer superannuation costs, including SGC, as required. 

__________________________________________________________ 

Payroll Administration

• Provide Agency with agreed payroll-processing timetable
• Agree performance standards with each agency.
• Invoice agencies within agreed timeframe, of funds required, detailing the total cash and non-cash payments for staff.
• Pay, by agreed methods and agreed frequency

___________________________________________________________

• each Officer's cash salary (on the agency agreed pay day),
• all pre tax benefits required for payment,
• any employee superannuation contributions
• any post tax deductions.

Payment of any Higher Duties Allowance, Annual Leave Loading 
Remit PAYE tax to ATO requirements and deadlines
When an Officer leaves 

• prepare all final calculations,
• process final payments including any special Termination Payments
• prepare Group Certificates. 

Interface electronically with financial, payroll and human resource systems as deemed appropriate with each agency
 
Provide mechanisms to enable an appropriate level of scrutiny/ audit 

___________________________________________________________

Fringe Benefits Tax

• Estimate FBT Salary Sacrifice amounts to establish package
• Calculate actual FBT liability and report to Treasury / Agency annually.
  Comply with record keeping requirements
• Remit to Treasury 4 weekly, salary sacrifice amount deducted for period
  Provide monthly to Treasury, a reconciliation of FBT remitted to Treasury.
• Provide Agencies with individual reconciliation of FBT remitted to NSW Treasury.
• Provide annual reconciliation of package to Officer
• Prepare for legislative changes

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Reconciliation and Reporting

• Prepare and issue payslips to each Officer
• Benefit statements issued to individuals at monthly intervals.
• Complete full remuneration reconciliation (including motor vehicle usage) by 15 March each year
• Reconcile gross and tax payments each month and report to each agency
• Prepare and issue Group Certificates within 14 working days from the end of the financial year.
• Provide each agency with the following reports
  • Payroll/ General Account Summary
  • Advice of Officer's current salary and Year to Date values for every component of their TRP, including pre and post tax deductions.
• Provide details by cost centre for all employee costs, as required by individual agencies

___________________________________________________________

Advice

• Provide advice to Agencies on Policy and Procedural matters where required.
• Liaise with each agency as requested