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Government paid parental leave

Maggie11
4 Posts
Cover User
Australia
Solved: Go to Solution

Government paid parental leave

Hi,  One of our employees is taking Government funded paternity leave.  This he believes will be paid directly to him, however he will still accrue entitlements (sick leave, holiday pay etc).  How do I record this on his timesheet.  I had thought that I would create an allowance - paternity leave and put his daily hours to this with a zero payment amount but I am not sure if this will work.

4 REPLIES
Ultimate Partner Seattle
1,192 Posts
Ultimate Partner
Australia

Re: Government paid parental leave

@Maggie11

 

I believe that Paid Parental Leave is paid to the employer who then pays the employee.

 

Would be checking with the Tax Accountant and MYOB for the correct treatment.

 

Duncan

Duncan Smith
Business Advice + Tax
www.businessadviceplustax.com.au
Helping business owners build a better business since 1998
E expressgst@optusnet.com.au T 02 9904 3672 7 days
Ultimate Partner ronatbas
3,427 Posts
Ultimate Partner
Australia
Accepted Solution Solved Solution

Re: Government paid parental leave

@Maggie11 @Seattle

 

Only a bureaucrat could invent a system as stupid as this - there are two types of leave that he can be applying for and they are paid differently. If it is Paid Parental Leave it is paid to the employer, but if it is Dad and Partner Pay (2 weks only) it is paid directly to him.

Under Paid Parental Leave there is no accrual of leave and I was not aware that Dad & Partner Pay included accrual, although given the other inconsistencies it would not surprise me. Checked the usual Fairwork and Centrelink and neither of them mention it.

I think that your approach would work - it will give a record that it has happened and fulfill the accrual requirements.

 

Ron B
BAS Group
03 95588477

info@basgroup.com.au
Making MYOB work for you
Maggie11
4 Posts
Cover User
Australia

Re: Government paid parental leave

Thanks Ron,  allowance idea worked.  Thanks also for the info re accruing entitlements.  I was advised verbally entitlements accrue, which I doubled checked with them at the time. I asked for confirmation in an email after your post and have since been advised no entitlements accrue during unpaid leave which is what I had originally thought too.  Too late now, have advised staff member that he will accrue entitlements for the 2 weeks.

Ultimate Partner Seattle
1,192 Posts
Ultimate Partner
Australia

Re: Government paid parental leave

@Maggie11 @ronatbas

 

Maggie,

 

As a Tax Accountant, I often encourage business owners to do their own research and contact the ATO directly.   Some clients initially say "that is your job" but I tend to encourage them and say that all business owners should take a keen interest in their business and that I will help them once they have undertaken some basic research.

 

Am glad there was a good result.

 

Duncan

Duncan Smith
Business Advice + Tax
www.businessadviceplustax.com.au
Helping business owners build a better business since 1998
E expressgst@optusnet.com.au T 02 9904 3672 7 days
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