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

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Rav

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

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

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

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

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.