Dad & Partner Pay, DPP Top-up, Covid Payment Top-up

[Celetas]

Hi

We have an employee on Dad & Partner leave.  He is claiming the Dad & Partner payment, which the government pays directly to him, and which we will top up to his normal wage.  My question is how is the top-up correctly recorded in MYOB?

I may be way off base but I'm wondering if we could set up the Dad & Partner payment as a one off, not regular, payroll deduction, such that the payment is decremented from the employee's normal pay? 

Similarly, we have another employee who has received the Covid payment from the government.  As with the Dad & Partner payment, we will be topping up the covid payment to the employee's normal wage in our next pay run.

Could/should the Covid payment also be set up as a deduction,  as per the Dad & Partner payment, so that the Covid payment is deducted from the employee's normal pay?

Our advice for handling the Covid payment is to reduce the employee's hourly rate so the total of the adjusted rate & the Covid payment net out to the employee's normal pay.  I'm not comfortable with this approach, but I'm floundering trying to establish how we're supposed to deal with these government payments that are paid directly to our employees that we typically top up to their normal pay.

If we can treat as deductions, happy to take advice on how to set up and classify for STP.  Thanks.

[LRBooks61]

Have a look at the following link from ato

https://www.servicesaustralia.gov.au/how-work-or-paid-leave-will-impact-your-dad-and-partner-pay?con...

My understanding is that the employee gets this and does not get paid by you ( the same as paid parental leave)

I suggest you talk to your accountant

Lisa