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Raflin's avatar
Raflin
User
3 years ago

Govt Parental Leave P:ay (PLP) & Employer Top-up of Pay

Hello   We have an employee who will be paid the Govt. Parental Leave Pay (PLP) and at the same time receive a top-up to bring her pay to the amount she would normally receive as her standard pay. ...
  • Tracey_H's avatar
    Tracey_H
    3 years ago

    Hi Raflin 

     

    Step 1 looks good to me, the account number in my screenshot is just an example so make sure you create an account number close to the wages expense account number so they will report together.

     

    Step 2, if the employer wants to see the break up of paid parental leave and employer paid parental leave then yes this looks good too.

     

    Question A - if the top up amount is allocated to the normal base hourly payroll category it will be included in the Wages & Salaries expense account figure. It might be worth checking with Fairwork or the ATO on whether EPPL needs to reported separately for STP and payslip compliance.

     

    Question B - yes you can process one payrun for the parental leave and top-up, just check that PAYG and super calculate correctly.

     

    Question C - financial reports, like the Profit & Loss, are based on the accounts amounts are posted to when a transaction is recorded. Payroll reports, like the Payroll Activity and Register, are based on the payroll categories used when recording a payrun. The Payroll Activity and Register Detail reports give a breakdown of the payroll categories the employee has been paid.

     

    So if you select a parental leave expense account you can view the amount paid separately in financial reports. If you use a parental leave payroll category you can view the amount paid for that payroll category in the payroll reports.

     

    No need to apologise, I'm happy to help so please let me know if you have further questions.

     

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