Forfeit Wages in Lieu of Notice not worked.

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))

Accepted answers

Acctd4

@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)

All comments

Zappy

@ShelleyG

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

If I were you, Id let it go

Acctd4

@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)

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

ShelleyG

Thanks Shaz

very helpful 😀

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