Workers Compensation - superannuation and accruing leave

EHSS

Hello.  We currently have an employee on workers compensation who is being paid directly from WorkCover.  I have been advised that both her superannuation will need to be paid and her leave entitlements will need to be accrued.  As we are not paying her and then being reimbursed from WorkCover how would I account for this in Reckon Account Hosted correctly? I appreciate any help you can give.  Thank you

Linda ABC

hmm.. my suggestion would be that you will need a Payroll Item that is for the level of payment she is now receiving - this item should be setup so that the appropriate leave and super are accruing/calculating and I would point this item to an Expense account under Payroll expenses that is NOT gross wages, but is say Workers Compensation - then you will need a Deduction Item that could be pointed to the same Workers Compensation account - which then removes the gross pay and any payg withholding that calculates... so the net effect on the P&L is zero - but your leave and super will calculate?  does this make sense?

Kwikbooks (Professional Partner)

Hi EHSS

do a pay for the employee or include them in the payrun, remove all gross pay & Allowances, and manually put in the super amount for the w/comp gross they are being paid.  In effect this will be a Nil pay but with super.  Also check on the leave accrual, if they are a full time worker you also find they MAY accrue A/L only while on W/comp, depending on certain factors.

Every state W/Comp is different, check your state W.comp legislation.

Having said this I would check on your information if it was given by icare / eml in NSW, I have found what they sometimes tell you is not accurate.  I know the above super & A/L Accrual only applies if you are paying them yourselves and getting reimbursed.  

You will find this changes after a certain period of being on W/Comp.  Check from a source that is expert, there are agents that actually handle w/comp for clients for a living.

EHSS

Thank you both for your responses.

Kwikbooks, I have been able to adjust the super amount within the paycheque but was wondering if we were liable for accruing of leave, how this would be done?  Would I be correct in reducing the employee's rate of pay to 0.00 and entering the number of hours they are being compensated to accrue the leave?

Kwikbooks (Professional Partner)

Hi EHSS

if it is a full time worker on WComp (I can only speak for NSW) go into the employee card, Leave & untick the leave liab.

Then process the pay as discussed with zero, manually adj super, and the leave accrual A/L should still appear in the leave boxes in paycheque.  Therefore every nil pay with super you create it will also create the leave accrual for that period. 

Whoops, I am assuming you accrue leave per pay period if full time worker, not hours worked, if hours worked try as you suggested hours, nil rate.  If this doesn't work you will need to make this employee leave per period.

If in NSW I would check the legislation, as I think I have read that Icare don't take over payments direct unless the employee has been on w/comp for 6 mths, and after 6 or 12 mths the super drops, I think, I have been wrong before

EHSS

Hello Kwikbooks

We are in QLD under WorkCover Queensland.  They and the ATO have confirmed that leave should be accrued while receiving workers compensation.  This worker is a permanent part-time employee who accrues leave per hour worked.  I will follow the processes above for our next payrun.  If I come across any problems I will post here again if that is ok.

Thank you again

Kwikbooks (Professional Partner)

if you have any issues email me Kim@kwikbooks.com.au 

EHSS

Great, thank you for all your help.

Kim Corica_10017684

Would you please explain how to enter a nil pay just with the 9.5% super amount? In my experience Reckon does not allow a nil pay to be entered.

Kwikbooks (Professional Partner)

Enter a nominal amount under w/comp or hourly 1hr @ $1 on one line
then use the same payroll item on the next line and do $1 @ -1hr, this
manually enter the super, turn off p/l in their details, and allow accrued leave to be entered, brings the pay back to zero, gives it accrued leave & super, and will allow you to create the pay because it has items