Terminating an employee on workers compensation

Question

Hi
We have an employee on workers compensation, he has not worked with us since October 2024 (he has been medically unfit for any duties and insurer have been reimbursing us his weekly wage). He has now been medically certified to not be able to continue in the role he had prior to his injury, we are based in TAS and the legislation states as his employer we need to continue making payments to him, on behalf of the insurance company even after we have terminated him.&nbsp; I have two questions:

we need to terminate him from our active payroll system and pay out his accrued leave, is this like a normal termination or are there relevant Workers Comp payroll categories that should be used?
does MYOB have a category or option where we can pass on payments to the worker on behalf of our insurer, after we have terminated his employment?

Thanks, hoping you can assist with clear info and options.
Anita&nbsp;

doreen_p · Answer

Hey DelpClem,
&nbsp;
Workers compensation can get a bit tricky. Since your employee's situation is a bit different, the Fairwork website is a good place to start or have a chat with your accountant. They'll be able to point you in the right direction and make sure everything's done properly under the TAS rules.
&nbsp;
Cheers,
Doreen

delpclem · Answer

Thanks Doreen, have already contacted Fair Work who dont give any advice in relation to Workers Comp and our Accountant who referred us to ATO who in turn said to speak with our accounting software provider.&nbsp; We understand what is required of us, just not how it is treated and processed in MYOB as once our employee is terminated we have no obligation for PAYG, Superannuation etc.&nbsp; I have been told other software providers have options that allow for a non wage payment to be made to a third party, in this case our ex-employee.&nbsp; That is what I am seeking assistance with, if you can help?

shella_a · Answer

Hi DelpClem,
&nbsp;
You can check this link about how paying workers' compensation works in MYOB. However, since your scenario is different, you will need the help from your accounting advisor about the best way to manage the payments in MYOB. They can surely provide you with the most precise guidance tailored to your situation.&nbsp;
&nbsp;
&nbsp;
Regards,
Shella

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Terminating an employee on workers compensation

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