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Changes to Paid Parental Leave as of July 1st 2011

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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
( FAO
www.familyassist.gov.au ) or they

Useful Links

Training Webinar:

Payroll Changes from July 1st 

Register now

More information for employers

Download the PPL scheme employer toolkit

Australia’s PPL Scheme

 

Fact sheet

 

Visit ATO Website

 

Visit Family Assistance Website

 

can pick up an application form from a local Medicare Australia or Centrelink office or by calling 13 6150. It is the responsibility of the employee to establish their entitlement to Paid Parental Leave.  

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 support@epayroll.com.au .

 

Click here for more information on the Paid Parental Leave Scheme.


Introduction of Flood Levy for 2011 - 2012

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           What is the “Flood Levy?”

                                              

The Flood Levy is an additional tax paid by most employees to assist and support the communities affected by the floods earlier this year. The purpose is to assist in restoration of essential infrastructure. As a temporary levy, it will only apply to some tax payers for the year of 2011-2012. 

 


Useful information


Training Webinar:

Payroll Changes from July 1st 

Register now

Download Flood Levy Declaration form

Flood Levy Tax Table

Download the official Flood Levy Fact Sheet

Download the government Flood Levy Calculator

FAQs

How will it affect employers?

How will it affect individuals?




Who will be affected?

The Flood Levy will only apply to those Australian tax payers with taxable incomes of more than $50, 000 for the financial year 2011-2012.  The Flood Levy will not apply to taxpayers who were personally affected by the disasters.

Who will be exempt from payment?

  •  - Australians with a taxable income of less than $50,000 for financial year 2011-2012.

  •  - Taxpayers who are in receipt of an Australian Government Disaster Recovery Payment for a flood event that occurred during the 2010-11 income year.

  •  - Individuals fitting this exemption will need to submit the Flood Levy declaration form.

How does the new Flood Levy impact your payroll software?

ePayroll users will automatically have the Flood Levy applied to all employees.  For employees exempt from payment of the Flood Levy because they were in receipt of an Australian Government Disaster Recovery Payment, simply tick the “Yes” radio button in the taxation tab in the employee record. See below:                   

                                      

Employees earning less than $50,000 per annum, will automatically not have the Flood Levy applied to their tax calculation.  Employees who receive a salary increase throughout the year whose earnings exceed $50,000 will automatically have the Levy applied.

Further information on flood relief support and assistance from the Australian Government can be found at http://www.disasterassist.gov.au.


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