How to Setup Unpaid Parental Leave in Tax Tracking on Payroll Item List


I have a staff member (on salary) taking 2 weeks unpaid parental leave, and after researching I still can't work out HOW it should be reported on the payroll item list in the tax tracking field. All the parental leave options state paid parental leave, but it looks like the correct tax tracking should be parental leave. Many thanks for any help/ideas
Answers
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This post has been created in Reckon One's payroll category, can I just confirm that is the software you're currently using? It sounds like you may be using Reckon Accounts or Reckon Accounts Hosted, is that correct?
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Hi Rav,
Sorry yes I am using Reckon Accounts, and the instructions I have found tell me to out the leave without pay in the none tax category, but the ATO sounds like it wants it listed as parental leave.
Thanks, Rebecca
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Hi @Rebecca_7639009 ,
Could you clarify what you're aiming to achieve?
Are you attempting to monitor the length of an individual's absence? If the time off is unpaid, it may not be necessary to set up a payroll item for it, as there is no associated pay. There is no income generated, and therefore, no applicable taxes. Unpaid leave simply represents time without pay.
Regards,
Reeta
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Hi Reeta,
I have a full time staff member taking 2 weeks unpaid parental leave, who is on salary and paid monthly. I am just having trouble trying to work out how to report it correctly for the STP.
Thanks, Rebecca
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Hi @Rebecca_7639009 ,
Based on my understanding, if no payment has been made, it may not be necessary to report it to the ATO via STP. Please review the attached screenshot from ATO website and the provided link to the ATO portal for additional details and clarification.
Reporting the amounts you have paid
I hope this helps.
If you need any further assistance please let me know.
Regards,
Reeta
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Thanks Reeta, that is very helpful
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Youโre very welcome ๐
Iโm glad I could help, please feel free to reach out if you need any further assitance.
Regards,
Reeta
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