Turning One Company into two and payroll.

Contributing Cover User OzCombined
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Turning One Company into two and payroll.

HI

We have one company that has now split into two companies. Same director on both, new directors on the second company.

New ABN, New Name etc.

Some of the employees have moved over to the new company.

All leave entitlements etc are transferred accross.

I have Manually entered in their leave entitlements into the new company. Therefore they show exactly what they have in accrual from the first company.

 

My Question is.......How do I now clear the entitlement balances in the first company so that they show a zero balance owing?

 

As the entitlements were not part of the buy in price, it has been agreed that the new company will pay the entitlements as they are taken, then invoice the first company for the amounts which the first company will reimburse the second company.

A spreadsheet to keep track of this has also been set up.

 

Just mentioning this so it is clear that everyone involved will be receiving what is owed.

 

Any assistance with this would be great.

Thank you in advance

Kathy

2 REPLIES 2
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Ultimate Partner IanChait
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Re: Turning One Company into two and payroll.

Hi @OzCombined 

 

When you enter termination dates in the first file, it will set the entitlements to zero.

 

You could also enter a nil pay, and record the entiltlement hours as negative in the Entitlement section.


Regards
Ian Chait CA
Certified Consultant Melbourne
P/M 0417 479 585
Email ian@myfc.com.au

Contributing Cover User OzCombined
9 Posts
Contributing Cover User
Australia
Contributing Cover User

9Posts

2Kudos

0Solutions

Re: Turning One Company into two and payroll.

Hi Ian

Thank you for your reply.

Didn't think of the end date clearing everything.

I did opt to do a nil pay run, though.

Appreciate the help

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