Forum Discussion

Meena's avatar
Meena
Experienced User
3 months ago

Paid Parental Leave

I have a staff member who is going on PPL in a few weeks and I am trying to make sure I am sorted as it has been over 5 years since I last had to deal with PPL and obviously not in the new Payroll system. 

 

I see there are 2 options on how to deal with PPL, (excluding the employee, or including the employee from pay runs) and the easiest for me is to exclude the employee.

 

MYOB says to add a termination date and then re-instate the employee when (if) they start back, however I am worried that this would mean they aren't accruing the Annual Holidays they are entitled to? Previously in the old system you were able to go into the employee tab and change their status to 'on PPL' so I am just wanting to double check I am doing it correctly.

 

Also, we were told last year that the Split Pays function would be back this year - do we have an updated time frame for this as I have staff asking for this to happen?

 

Thanks in advance :-)

  • Meena's avatar
    Meena
    Experienced User

    Thanks very much jenniek - I didn't think adding a termination date was correct as there would be no way of Annual Leave accruing, so I will process by way of adding in a new pay code. Appreciate your help!

  • jenniek's avatar
    jenniek
    Ultimate Partner

    Hi Meena

    MYOB Business payroll does not cope with Parental leave calculations correctly. I certainly would not be putting in a termination date - as this employee is still employed and correct - accuring leave albeit at no value. Any annual leave owing (not accrued) left owing when the employee goes on parental leave will be ring fenced, so keep a note of this amount. While the employee is on parental leave, process a pay using a created code called parental leave - with number of std hours, but no dollars. Then when employee returns to work, the leave calc will be correct at last 52 weeks including the time taken off. But be aware if std hours per week changes when they return, then you will need to make sure that this is taken into account. Manual calculations to check will likely be required.