Resigned employee to continue to be paid workcover

Ellie Beth
Ellie Beth Member Posts: 2
edited April 2020 in Accounts Hosted
We use Reckon Hosted and have an employee that has resigned but is still on workcover.  The workcover provider informs me that we will still have to pay this "employee" for the immediate future.  My question is can I "terminate" an employee in Hosted (will pay out her entitilements) but continue to pay her workcover payments (we deduct payg).  I am guessing I may have to do something with dates?  Or do I have to set up the person again as an "employee" to continue taxing her workcover payments.

Comments

  • Kwikbooks (Professional Partner)
    Kwikbooks (Professional Partner) Member Posts: 824 ✭✭✭
    edited April 2020
    Hi Ellie

    I would check on the info you were given, as you should only have to pay the workers comp for the notice period the employee is bound by.  There for pay the worker the w.c as usual and accrue the leave & super for the notice period.  I would give the wcover insurer the finishing date and tell them they will be responsible for payments from then on.  Then terminate the employee as normal with normal termination pay.

    if it is an employee who has been off for a while, they should have a back to work/rehab case worker, which need to be informed if the worker doesn't think they want to come back to their post injury work.

    FWC - Resigning from a job while on workers compensation

    An employee can resign from their job while they're on workers compensation. They:

    • have to give the correct notice period to their employer
    • can use their workers compensation period as the notice period.
    Notice periods can be different in each award and registered agreement. Check the Resignation - how much notice page for more information about notice periods under awards.
  • Ellie Beth
    Ellie Beth Member Posts: 2
    edited March 2019
    Thanks for your reply.  Circumstances are that the employee changed address and has been off for over a year.  The workcover insurer has advised us to continue to pay her workcover payments until they advise us further.  They will be assisting her in finding new employment. The resignation was at the insurers suggestion as they first suggested we terminate her employment but we declined.  We are now left with paying a terminated employee workcover payments and need to deduct PAYG.  I may set her up as a new "employee" to process her workcover payments.
  • Kwikbooks (Professional Partner)
    Kwikbooks (Professional Partner) Member Posts: 824 ✭✭✭
    edited April 2020
    Unfortunately the insurer will advise what is in their best interests, best advise I can give you is seek professional advise external from your insurer, their are professionals who deal with just this workers comp. I fear that resigned or not if you are still paying them you still have to accrue leave and pay super. This is based on NSW.

    If your state is different, then terminate as usual through payroll, then turn off the leave accrual & super if you are allowed, then just continue to pay them the wcomp gross less tax.

    I would make clear notes on the employee organiser.