Setting up an employee to receive Workers Compensation Payments

Burnbaby Member Posts: 17

Hi, I have an employee who will be receiving Workers Compensation payments and I am not sure how to set them up in Reckon. On a normal pay they also have all of these other allowances added plus super and long service leave but these will not form part of their workers compensation pay. Do I need to delete these from the employee pay set up page? I'm not very confident with Reckon so I need EASY instructions, even some screenshots so I can follow. Also when I receive the money from our Workcover provider how do I deposit that into the bank/set up another account to receive these funds?


  • Acctd4
    Acctd4 Accredited Partner Posts: 3,167 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert

    You need to set up a new Payroll Item for paying this to the employee. I would generally recommend setting this up as a Wage type on the initial window > Other on the next:

    Go through the subsequent setup windows & configure accordingly - Note it will attract PAYG Tax but not State Payroll Tax as it is exempt. (NOTE: You need to check your relevant state legislation for Worker Comp & also your applicable Award in terms of Allowances, Leave & Super that may still be applicable as this can vary depending on where you are & if there is any specific clause in your applicable Award for them!)

    To receive the payment into your account, as there is no tax code applicable, you can receive this direct via Make Deposit:

    Create a new Customer-type with the same name as the applicable insurance (Supplier) but with a "(c)" identifier (which will enable you to distinguish between payments to & payments from)

    Create an Income account (or Other Income, depending on where you want to see it in your P&L) for receiving the funds & add a relevant Memo ("copy & paste" this so it displays in both the main & line Memo as this ensures it will show in all relevant reports)

    It's a long-term glitch but the Received From name drops out, preventing it displaying under the applicable payee's transactions so to fix this, go to the transaction in your bank account register & just add in/select the name again & re-save.

    I would also Memorise this Deposit to auto-enter for you each wk/fortnight as applicable so you don't have to remember how to enter it & can just edit the Memo accordingly instead 😊

    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    *** Reckon Accredited Partner(AP) Bookkeeper - specialising EXCLUSIVELY in Reckon Accounts / Hosted ! ***

    * Regd BAS Agent (No: 92314 015)* ICB-Certified Bookkeeper* Snr Seasonal Tax Consultant since 2003 *

    Accounted 4 Bookkeeping Services

    Ballajura, WA

    [email protected]

    (NB: Please give my post a Like or mark as Accepted Answer if I have been able to resolve your query as this helps others when seeking solutions!)