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SarahJB's avatar
SarahJB
Contributing User
12 months ago

Continuing Workcover payments for a terminated employee

I currently have 2 staff on Workcover that we have either terminated, within the last week, or are about to (as per Workcover Vic and Fair Work rules).  Even though they are terminated, as their previous Employer we are still obliged to make their payments on WorkCovers (or Insurers) behalf, silly system.

My questions is as follows:  How do we terminate them in MYOB and still make these payments as well as report them to the ATO as per STP2 rules?  We are required to process these payments through payroll, to process them through payroll we are unable to add a termination date to their card file which means they still show on our system as employed.... very messy.

Is there a way to do this and show them as terminated?  I have looked on both the Forum and Website but have not found anything even remotely helpful, has anyone else experienced this and if so how did they work around it.

Thanks in advance

Sarah

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  • Leneth_A's avatar
    Leneth_A
    MYOB Moderator
    12 months ago

    Hi SarahJB,

     

    Thanks for your post and welcome here to the Community Forum. Apologies for the delay in responding and I appreciate you sharing your concerns.

     

    Regarding your inquiry, if the employee has already been terminated on the system, we won't be able to process the payments. It would be best to process the payment first before terminating the employee.

     

     

    Please feel free to post again if you need further assistance in the future.

     

    If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

     

    Cheers,
    Leneth

    • SarahJB's avatar
      SarahJB
      Contributing User
      12 months ago

      Thanks Leneth,

      If it was just the one payment then it would be simple however the problem is that we are required to make ongoing weekly payments for this ex employee for as long as they are entitled to WorkCover payments, which could be months or even years.  These payments need to ne reported to the ATO as  there is PAYG tax payable on them, hence my dilema

      Hoping there is some other solution as there will be another employee in the same situation in 3 weeks.

      Thanks Sarah

       

       

      • Leneth_A's avatar
        Leneth_A
        MYOB Moderator
        12 months ago

        Hi SarahJB, 
         
        Thanks for letting me know and thank you for more information about your concern. 

        The other option is if the employee was terminated, you may activate the employee card file again, process the employment termination payment (ETP), and after you reported to the ATO you may deactivate it again. You can find more information about this in our help article Processing an employment termination payment (ETP). 
         


        Please let me know if you need further help. 

        If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information. 

        Cheers, 
        Leneth