Workers Compensation? Help!

Question

Hi all,

I have someone that hurt themselves at work and will be on Workers Comp.

I have no idea what pay item to create or how to pay them their weekly Workers Comp amount. (as there won't be superannuation calculated on it)

Just wanted to check as there has been so many changes in relation with Payroll and STP 1/2. and wasn't sure if this kind of thing is supposed to be recorded differently on the system.

Not sure where to start as i know that W/C is treated different to wages paid normally

Thank you

Arron · Answer

Hi Rav

https://community.reckon.com/discussion/comment/20637905#Comment_20637905

just wondering if you were able to look at my previous comment? thank you for your help in advance :)

Arron · Answer

Thank you Rav, I only use Reckon One for the payroll component (as i lodge STP and run payroll myself). My accountant does the rest of the book keeping and records the rest of the transactions (income/expenses/receiving funds etc) on their end.

A bit about the employee - Casual Employee, NSW,  (iCARE/EML will calculate their PIAWE and let me know how much to pay them per week)

Please see attached (does this look correct)? - i will just insert it as a pay item when i pay them per week

From my understanding is that Workers Compensation can be paid like this if we are still in STP Phase 1?

Looking forward to your reply :)

Rav · Answer

Hi @Arron

While there is pre-set Workers Compensation pay item in Reckon One as such, you can create a new pay item to be configured for that purpose.

I'm not an accountant or tax agent so can't advise you on this however from what I understand there are a series of transactions involved in the process of WC such as making a claim, receiving funds from WC, paying the employee etc etc, and only a few of these might actually be payroll related. It might be best to check with the WC authority on what is required specifically and chat with your accountant on how it needs to be recorded/presented/labelled etc.

From there, it'll give you a clearer indication on what you need to do within Reckon One itself ie. whether you need to create new pay items, which transactions to record etc etc.

Note: Reckon One is continuing under STP Phase 1 at the moment but will be receiving an upgrade very soon which will also bring in STP Phase 2 reporting. More info on this HERE.