TAC income entitlements

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Jenny_10112551
Jenny_10112551 Member Posts: 22

Our employee has been in a car accident and due to his TAC claim for income support payments being delayed, the Employer has been paying the employee sick leave.

We have just been advised that TAC will be paying the Company, back-dated income support entitlements.

My question is, going forward the employee will no longer be paid Personal leave (sick leave) but will still be paid by the Employer, using the funds from TAC, do I create a new payroll item, named TAC entitlements?

Also I have to reinstate the employee's Personal leave hours, how do I do this?

Thank you for any advice given.

Jenny

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  • CSP
    CSP Member Posts: 3
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    Hi Jenny,

    Did you ever find the answers to these questions? We are facing exactly the same situation and seeking clarification as to how to handle correctly. Any insight would be greatly appreciated.

    Thank you :)

  • Jenny_10112551
    Jenny_10112551 Member Posts: 22
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    Hi CSP,

    I didn't receive any answers here...so after speaking to our accountant. I created a General journal and credited our wages account with the TAC back payments we received. I paid our employee the small difference between what we had paid him and the amount that TAC finally agreed on, I just used personal leave item on his payslip.

    I also reimbursed his personal leave hours. Note: Going forward, the award our employee is on means that he is not entitled to accruing annual leave and personal leave whilst on unpaid leave and receiving TAC payments.

    I encouraged our employee to deal direct with TAC, and he now receives the TAC payments.

    Hope this helps in some way.

  • CSP
    CSP Member Posts: 3
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    Thank you so much Jenny, that information is very helpful.

    Thank you for letting me know that he is not entitled to accruing annual leave and personal leave - I will definitely look into this further.

    Just to clarify, while your employee is receiving direct payments from TAC, are you as an Employer paying any additional leave component to him?

    TAC is only covering 80% for our Employee, so I am unsure whether we are obligated to continue to pay the additional 20% (1 day / week) Personal Leave while they still have entitlements owed?

  • Jenny_10112551
    Jenny_10112551 Member Posts: 22
    edited May 2021
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    You are welcome - there seems to be very little info readily available about this matter. No, we are not making up the shortfall - I don't believe we are obligated to, even though our employee has entitlements owing to him.

  • CSP
    CSP Member Posts: 3
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    I agree, there is VERY little information available. TAC were not even able to provide any guidelines.