Early Childhood Education and Care Worker Retention Payment

AndrewN
AndrewN Member Posts: 27 Reckoner Reckoner
in Reckon Payroll

Does anyone have any ideas on how to record the receipt and expensing of this grant?

Comments

  • Rav
    Rav Administrator, Reckon Staff Posts: 14,113 Reckon Community Manager Community Manager

    Hi @AndrewN

    What are the specific requirements of this grant?

    I've had a brief look at some of the details online and it seems as though its a % of an eligible employee's earnings, is that correct? Does it also encompass other earnings such as overtime? Is it subject to super guarantee?

  • AndrewN
    AndrewN Member Posts: 27 Reckoner Reckoner

    Quite complicated actually … backdates to 2 December 2024 (for us). Payment is +10% on Award rate (not necessarily what we pay staff) + super (I am using 11.5% for backdated to July and 12% after that). Reconciliation needs to be provided to the government on what we have been paid (as a grant) against what we have paid out including an extra sum for part of preDec24 accrued leave. Quite an accounting mess. I am working through stuff, some will need to be journal entries. Payments are received in arrears. Need I go on? If you are using it you will know what I mean if not then I would bother trying to work it out. Thanks for the interest though.

  • Sandra Waye
    Sandra Waye Member Posts: 1 Novice Member Novice Member

    Yes it is complicated but you also need to set it up correctly with separate payroll items for each category eg wages, overtime, leave etc. Also if you are doing your backpay after the 1st July it doesn't matter if the pays relate to previous financial year you need to pay the 12% Super. I would recommend reaching out NOSHSA as they are providing advice on how to set up, calculate & track etc. Good luck as I am just about to set it up myself.

Categories