Income Protection Insurance
Hi,
I am about to have a staff member who will be activating their income protection insurance policy and will be getting paid direct by their insurer.
Under the provisions of the insurance, we understand that the staff member will be able to work for up to 2 days per week.
If this does eventuate, I am wondering how I process a salary payment for this staff member if they work a day or two a week which is obviously below their full-time hours. Do I just record the hours that he doesn't work as unpaid hours or leave without pay?
Many thanks,
Michael
Hi mking72,
Thank you for your post.
In the scenario you've described, if the staff member works fewer hours than their usual full-time schedule due to activating their income protection insurance policy, you have a couple of options. You can either record the hours not worked as unpaid hours or designate them as leave without pay. The choice between these two options may depend on your company's policies and the specific terms outlined in the employment contract. It is advisable to consult with your accountant or the ATO if you'll need to record the unworked hours or enter the pay as normal by just entering the worked hours.
Feel free to let me know if you have further questions.
Cheers,
Princess
