How to deal with resignation while employee receiving workers compensation?

[AEH2]

We have a worker that has been off on workers compensation leave since March 2022. We have been paying his fortnightly wages and then claiming this back from the insurer following each pay. The worker is not yet ready to return to work but has resigned effective one week ago.

The insurer insists we still need to continue to pay his wages and claim back from them until he is ready to return to the workforce even if no longer employed by us. I can find no concrete answers anywhere as to how we need to deal with this. In order to pay out his leave and complete him in STP we will need to enter his resignation date but then if we continue paying his workers compensation wages following his resignation date will this create issues in MYOB and STP??

[Tracey_H]

Hi @AEH2 

I'm sorry to see that no one has replied to you yet. In this situation, I'd recommend checking with your accountant or the ATO to ensure you're meeting your legal requirements.

From an STP perspective, the employee is still receiving income which needs to be reported to the ATO, confirm with the ATO that this should be done by you. From a business perspective, the wages expense is being cleared by the reimbursement from the insurer so the actual wages expense for the business is accurately reported. 

Please let me know if you need further help.

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