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

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Rebecca_7639009
Rebecca_7639009 Member Posts: 6 Reckoner Reckoner
edited June 24 in Accounts Hosted

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

  • Rav
    Rav Administrator, Reckon Staff Posts: 14,337 Reckon Community Manager Community Manager

    Hi @Rebecca_7639009

    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?

  • Rebecca_7639009
    Rebecca_7639009 Member Posts: 6 Reckoner Reckoner

    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

  • Reeta
    Reeta Reckon Staff Posts: 283 Reckon Staff Reckon Staff

    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

  • Rebecca_7639009
    Rebecca_7639009 Member Posts: 6 Reckoner Reckoner

    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

  • Reeta
    Reeta Reckon Staff Posts: 283 Reckon Staff Reckon Staff

    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

    image.png

    I hope this helps.

    If you need any further assistance please let me know.

    Regards,

    Reeta

  • Rebecca_7639009
    Rebecca_7639009 Member Posts: 6 Reckoner Reckoner

    Thanks Reeta, that is very helpful

  • Reeta
    Reeta Reckon Staff Posts: 283 Reckon Staff Reckon Staff

    @Rebecca_7639009

    Youโ€™re very welcome ๐Ÿ˜Š

    Iโ€™m glad I could help, please feel free to reach out if you need any further assitance.

    Regards,

    Reeta