WorkCover Compensation

StaceyL123

Hello Reckon Community,

We have an employee who is off work and is currently going through WorkCover. We have been been paying him his normal wage but now we have received money from WorkCover.

How would i enter these funds into QB?

TIA :)

Acctd4

Hi @StaceyL123

Create a new WorkCover Recoupment Income (or Other Income) account & enter each payment received under Make Deposits, posting to that account ☺️

Remember to also add the WorkCover payer name again on each one in your bank register to ensure it displays in the payer’s transactions list as the name you enter in the Deposit window will drop out (long-term glitch 😬)

StaceyL123

Thank you, that's exactly what i was looking for. Is there a tax code when i create this Income Account?

Acctd4

Hi @StaceyL123

No, there's no tax code - which is why it can be entered as just a stand-alone Deposit 😊

A good rule of thumb to determine whether a tax code should be used (& which one) is to determine whether it is included as part of G1 income (or T1 PAYG instalment income) or not, as per the lists here:

https://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/gst/in-detail/managing-gst-in-your-business/reporting-paying-and-activity-statements/completing-your-bas-for-gst/complete-your-bas/step-1-sales#ato-G1totalsales:~:text=anything%20that%20is,an%20insurance%20policy.

Although "WorkCover" isn't specifically listed, it's a recoupment of an insurance settlement amount 😊

(@Rav My links aren't posting again 😖 - @StaceyL123 - If it's not displaying as a link for you, copy & paste the text into your browser instead)