Changes to Paid Parental Leave as of July 1st 2011
Thursday, June 30, 2011 - By Janette Francis
Employers are now responsible for payment of Parental Leave to employees. Find out what your Paid Parental leave responsibilities are as an employer.
What is the Paid Parental Leave?
- - A government funded paid leave entitlement for working new parents.
- - Payment is for a maximum of 18 weeks taken within the first year after birth or adoption.
- - It is paid at the National Minimum Wage - currently $ 589.30 per week before tax.
Eligible employees must apply for Paid Parental Leave (PPL) with the Family Assistance Office Useful Links
( FAO www.familyassist.gov.au ) or they
What does the Paid Parental Leave scheme mean for you as an employer?
Once the employee’s application for PPL is approved, the FAO will notify the employer by sending them a ‘Notice of Employer Determination’ letter. The employer should, within 14 days, provide the FAO with an acceptance and forward the employers banking details into which the Paid Parental Leave payments will be deposited.
Following receipt of payment from the FAO the employer is obliged to ensure that the employee is paid via the payroll system. Normal obligations to provide a payslip and deduct appropriate tax continue to apply. There is no obligation for the employer to pay unless they have first received the payment from the FAO.
Employees on PPL do not accrue annual leave, personal carers leave and long service leave. Paid Parental Leave is not subject to superannuation and is not a component in payroll tax or establishing workers compensation premiums. However, PPL is taxable income and the employer will need to deduct PAYG.
It is your responsibility as the employer to ensure compliance with your PPL obligations. Failure to comply could result in penalties of up to $33, 000 per offence.
Note: The existing minimum entitlement to 12 months unpaid parental leave for long-term employees, in the National Employment Standards under the Fair Work Act 2009, is unchanged.
How does the PPL impact ePayroll?
As an ePayroll user all you need to do is to attach the Paid Parental Leave (PPL) pay code attached to payment groups to the employees you want to pay. All need do is enter the dollar amount for the pay cycle (weekly $589.30, $1,178.60 fortnightly and $2,357.20 monthly).
If you have any difficulties please email firstname.lastname@example.org .
Click here for more information on the Paid Parental Leave Scheme.