Workcover payment and workcover reimbursement?

lauranguyen

Hi all,

We just got an employee who got injured at work. My question is:

How can we record the workovers reimbursement received from insurer?

and how we record the payment to employee?

Your helps would be appriciated !

Kris_Williams

Are you still processing wages in the normal way? The income would just go to an income account called Workers Comp reimbursement, at least that’s what I do with it

Acctd4

To add to Kris's comment, this income reimbursement you receive should be entered via the Make Deposit window.

Sales Receipts/Invoices are used when a transaction needs to be allocated a tax code to ensure inclusion in Tax (BAS) reports. As WC is not BAS-applicable, it doesn't need to be entered via that process.

If applicable - eg if the entity is paying PAYG Instalments based on a percentage of income - this Workers Comp reimbursement income amount is shown at T1 only on the BAS for this.

lauranguyen

Thanks alot. We just added WorkCover Paid and run payrun as normal. Havent received the reimbursement yet but not sure recorded as income or journal entry to reflect the amount in and out.

Kris_Williams

As Shaz said best way is just Make Deposit, the expense should already be included as wages

lauranguyen

Will do that way. Thanks so much 😄

Acctd4

@lauranguyen General Journal (GJ) entries are the behind-the-scenes double-entry accounting process that takes place for any transaction entry & can involve ANY account in your Chart of Accounts List.

The Make Deposit entry still creates a GJ ! (DR bank account / CR WC Reimb Income)

The purpose of having alternate entry methods - eg Enter Bill, Rcv Pymt, Write Chq, Make Deposit etc - is just to make the process simpler at User level & more relevant to what has actually occurred.

GJs are very generic & - unlike the entry options available - don't capture specific details/scenarios very well. There are few reasons to need to use a GJ in RA. I mainly only use them for EOFY Depreciation or for something that can't be entered any other way (which isn't much! 😊)