Helpful information to better help you use and get the most from your eprophet Administration system.

Transcription

1 Helpful information to better help you use and get the most from your eprophet Administration system. Tips Sheet #8 (Payroll) Handling Government Funded Paid Parental Leave in eprophet Payroll Commencing from 1 st July 2011 the Australian Federal Government has introduced Government Funded Paid Parental Leave which is required to be paid through the payroll system where the person was employed when their paid parental leave commenced. For further information about the Government Funded Paid Parental Leave please refer to the Centrelink website at Paid Parental Leave. One IMPORTANT point to remember is that this government scheme is fully funded by the Federal Government and as such it needs to be handled very precisely so as not to impact on your Labour costs and/or Financial Reports such as your Profit and Loss Statement. So in order to handle this new government scheme there are several steps required to be setup in both your eprophet Payroll and Accounts systems. The methods outlined in this document is the preferred Abcom method, if you choose not to follow this method you may not be able to handle the Paid Parental Leave correctly, and Abcom therefore might not be able to help you via normal support. In order to successfully implement the procedure as outlined in this document you will need to ensure that you have the current eprophet Payroll build of or greater. The can be confirmed by looking on the status bar on the bottom of your eprophet Payroll screen. As shown below If you do not have this version or greater please contact your regular Abcom support consultant for advise as to how to upgrade to the correct version. Tips Sheet No 8 (Payroll) - Handling Government Funded Paid Parental Leave.doc, Page 1 of 5

2 STEP 1: Setup NEW Department As the Paid Parental Leave is fully funded by the Federal Government all these payments made through your eprophet Payroll System needs to be separated out from your regular payroll entries. To achieve this you need to set up a new department to expense these employee payments to. The steps to add a new department are as follows: 1a: From within your eprophet Payroll system select 1b: From the Setup menu, then select 1c: From within the Department Maintenance screen, select NEW from the top toolbar and then make the following entries Once the appropriate entries are made to match the above screenshot, then select SAVE. Tips Sheet No 8 (Payroll) - Handling Government Funded Paid Parental Leave.doc, Page 2 of 5

3 STEP 2: Setup NEW Income Type One of the legal requirements of the Paid Parental Leave Scheme is that the payments made under this scheme need to be clearly identified as a Paid Parental Leave payment. To achieve this we need to set up a new income type to expense these employee payments to. The steps to add a new income type are as follows: 2a: From within your eprophet Payroll system select 2b: From the Setup menu, then select 2c: From within the Income Type Maintenance screen, select NEW from the top toolbar and then make the following entries Tips Sheet No 8 (Payroll) - Handling Government Funded Paid Parental Leave.doc, Page 3 of 5

4 STEP 3: Setting up an Employee to receive Paid Parental Leave The steps to correctly setup an Employee to receive Paid Parental Leave are as follows: 3a: From within Maintain Employees screen select the new Paid Parental Leave department as shown below 3b: First take note of the Employee s Existing Remuneration section (Tip: make the notes in the Employee Note s section at the bottom of the screen), then change their remuneration section to as shown below 3c: From the Accruals tab within the Income Maintain Employees screen, place a tick in the Suspend Leave Accrual option under the Leave Accrual in Days subsection. As shown below. Tips Sheet No 8 (Payroll) - Handling Government Funded Paid Parental Leave.doc, Page 4 of 5

5 STEP 4: Running Payroll The steps to running the payroll are exactly as per any other weekly payroll that you perform the only significant differences you will notice are as follows: 4a: Any employees that are setup to receive Paid Parental Leave payment will now appear in the Payroll Data Assembly step along with your other Salary (Autopay) employees such as managers. 4b: In Further Payroll Data Entry, those employees setup to receive the Paid Parental Leave payment will appear with only a single income/allowance payment as shown below. For further information on the Federal Government s Paid Parental Leave please refer to the ATO website, Centrelink website or consult with your accountant, ABCOM is not able to provide you with any statutory advice in regards to the Paid Parental Leave Scheme. Tips Sheet No 8 (Payroll) - Handling Government Funded Paid Parental Leave.doc, Page 5 of 5