WorkCover Compensation

StaceyL123
StaceyL123 Member Posts: 31 Reckoner Reckoner

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 :)

Comments

  • Acctd4
    Acctd4 Accredited Partner Posts: 3,727 Reckon Accounts Hosted Elite Expert Reckon Accounts Hosted Expert
    edited August 23

    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 😬)

    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

    shaz@accounted4.com.au

    https://accounted4.com.au

    (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!)
  • StaceyL123
    StaceyL123 Member Posts: 31 Reckoner Reckoner

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

  • Acctd4
    Acctd4 Accredited Partner Posts: 3,727 Reckon Accounts Hosted Elite Expert Reckon Accounts Hosted Expert
    edited August 27

    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)

    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

    shaz@accounted4.com.au

    https://accounted4.com.au

    (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!)