Forfeit Wages in Lieu of Notice not worked.

ShelleyG · February 5

Has anyone set up a payroll item for wages withheld in lieu of notice not worked?

Did you set it up as an hourly amount or as a deduction?

According to Fair work regulations, any deductions require the name of the account of where the deduction was paid (to comply with reg 3.46(2)(b))

Acctd4 · February 5

@ShelleyG That regulation relates to where an employee is having a deduction for the purpose of on-payment to a 3rd party (eg Child Support, Union Fees etc)

Ensure your relevant Award allows for wages withheld iLoN (as some don't) This deduction is also usually only allowable from worked earnings, not from any entitlement payout(s) (unless your specific Award states otherwise)

This deduction is classified as income to the employer & - if applicable - should be reported at T1.

You can set up as either a (negative) Hourly Wage or a lump sum Deduction. The important part is the Payroll Item config/STP mapping, as this deduction needs to be from NET pay (so not impacting PAYGW or Super, with None selected for Tax Tracking)

Zappy · February 5

@ShelleyG

Unless you paid the notice not worked in advance, why are you deducting anything?

If I were you, Id let it go

Kr

ShelleyG · February 8

Thanks Shaz

very helpful 😀

Forfeit Wages in Lieu of Notice not worked.

Best Answer

Shaz Hughes Dip(Fin) ACQ NSW, MICB

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

Accounted 4 Bookkeeping Services

Ballajura, WA

(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!)

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