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

[Raflin]

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.

However, MYOB support notes said that when setting up PLP, I have to "Override the Employee's Wage Expense Account".

What is the best solution?

Appreciate your response.

[Tracey_H]

Hi @Raflin 

Thanks for your post. Override the Employee's Wage Expense Account refers to the expense account the wages are allocated to for reporting purposes. So in the case of Paid parental leave you would create a new expense account called Paid parental leave and select that as the wage expense account in the Paid parental leave payroll category.

When you run reports, such as the Profit & Loss, the PPL will be reported separately to the normal wage expense amounts:

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.

[Raflin]

Hello Tracey

Thanks for your informative reply.

From the information you provided together witht reference to the MYOB Paid Parental Leave Notes, can you please confirm I will therefore need to do the following:

1. Govt Scheme - Parental Leave Payment (PLP)

* Create new Wage Expense A/c eg. "6-5150 Parental Leave Payment"

* Create new Wage Category "Parental Leave Payment"

* Select "Override Employee Wage Expense A/c" with the above 6-5150

* P&L will report PLP Expenses separate from Wages & Salaries Expenses

2. Employer Paid Parental Leave (EPPL) - Paid as Top-up to Minimum Wage provided in PLP

* Create new Wage Expense A/c eg. "6-5160 Employer Paid Parental Leave"

* Create new Wage Category "Employer Paid Parental Leave"

* Select "Override Employee Wage Expense A/c" with the above 6-5160

* P&L will report EPPL Expenses separate from Wages & Salaries Expenses

Question A - If Employer does not require a separate reporting on EPPL Expenses, I can avoid #2 (above) and just process the Top-up amount as per standard payroll payment and it would be reflected in P&L in the Standard Wages & Expenses?

Question B - Can I process together the PLP (that is paid as a Salary wage category) and the EPPL that is based on the employee being an hourly employee?

Question C - Will the Payroll "Activity Summary" report show the PLP & PPL amounts as separate amounts,  lumped together as "Wages", or not shown at all ?

If not shown at all, how can I add those 2 expenses categories to the report so it reflects the full employment expenses of wages/PLP/EPPL?

Apologies for taking up your time with my long queries but I do appreciate your assistance.

Regards

Raflin

[Tracey_H · Accepted solution]

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.

[Raflin]

Thanks Tracey for your help

Regards

Raflin

[MichelleMelb]

Hello, I have a similar situation and I am looking for a solution. 

Would it be good to have 2 Payroll categories so it seperates the government funded pay from the employer top up pay?

Maybe I could name them:

1. PPL - govt 

2. PPL - Employer

I understand PPL- govt would need the 3 accounts (Liability, income and expense)

Regarding the topup pay would that be an amount that the employer decides on and it gets setup as a salary in the card file and it is assigned to the Gross wages account that all other wages come from?

I look forward to your response

[MichelleMelb]

Hello Raflin,

I am interested to know what you decided to do to setup your pays for the parental leave?

Thanks

Michelle