Entitlement Accruals Reversed

[DebPIT]

I have just been informed that Work Cover are back dating a claim for July this year.  Originally it was to be Medical Expenses Only but the Dr has changed this to now include No Capacity for a 2 (plus) week period.  

This was originally paid out of Sick and Annual Leave once sick was exhausted.  

I understand that the 1st week is non recoverable, but I need to know how to change this in the system to reimburse his sick and A/Leave entitlements.  I have entered a payroll category for both Non Recoverable and Recoverable (we will pay his wages and be reimbursed by work cover) that I am able to use in the time sheet entry.  

Should I change the entries in the weeks that they were actaully paid and if I have (negative) -8 hours per day for the sick and A/L and (positive) for the Work Cover Non Recoverable and Recoverable, will this reimburse their entitlements or do I need to adjust these manually and just do a journal to show where/why these were changed..   Also, the leave loading, are we at liberty to deduct his wages for the same (it is just over $100) or is this not legal?   

Thanks

[Neil_M · Accepted solution]

HI @DebPIT 

If the employee needed to be paid on different payroll categories than they were, you could do an adjusting pay. This would basically be a pay where the incorrect payroll category was recorded as a reversal of the original amount, and the correct payroll category had the equivalent number of hours against it.

If you record a negative against a wage category used to pay out an entitlement, it will carry that number through to the entitlement. So whereas a positive number against that payroll category will reduce the entitlement, a negative amount will increase the entitlement.

As for whether or not you were able to deduct that amount off the employees wages, I’d recommend seeking independent advice such as from Fairwork or similar