How to create the Paid Parental Leave payroll item in QuickBooks 2010/11

Legacy KB ID: 3937

Question

How do I create the Paid Parental Leave payroll item in QuickBooks 2010/11?

Answer

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Paid Parental Leave is now an option in QuickBooks 2011/12 in the Wages option of a new payroll item  
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To setup the Paid Parental Leave payroll item follow these steps:

1.    Create a new payroll item:  Lists > Payroll Items > Payroll Item button > New;

2.    For Payroll Item type, select Wage;

3.    For Wages, select Paid Parental Leave;

4.    For Expense Account, select the appropriate account – eg, Payroll Expense:PPL;

5.    Tax Tracking Type is Gross Payments;

6.    For Taxes, PAYG Tax is ticked and State Payroll Tax is unticked;

7.    Click Finish.

Note:  Paid Parental Leave does not accumulate Leave entitlements. 

 

Check Superannuation items

Paid Parental Leave is not included in the 9% Super Guarantee calculation.

1.    Right-click your Superannuation item and select Edit Payroll item

2.    Next through to the last screen:  Include payments in contribution

3.    Untick the newly-created Paid Parental Leave

4.    Click Finish

5.    Repeat these steps on all Superannuation items.

 

Check the current rate of Paid Parental Leave.

Paid Parental Leave is created as an hourly wage rate and does not contain an hourly rate of pay.  It is linked to the basic wage and may change from year to year.  See https://guidesacts.fahcsia.gov.au/guides_acts/ppl/pplguide-1/pplguide-1.2/pplguide-1.2.3.html for the latest Paid Parental leave Guide and current rates.

The rate is quoted as a weekly wage so you will need to divide that rate by the number or ordinary time hours for your company.  You may need to refer to your Accountant for a precise calculation method. 

 

In the Employee Record

In the Payment and Compensation tab > Earnings, add the newly created Paid Parental Leave item together with the hourly rate and number of hours. 

 

When preparing the pay

You must enter a 1 in the Quantity column for Paid Parental Leave.  Tax will calculate in line with existing Tax Tables and the employee’s earnings for the financial year. 

 

Note:  Paid Parental leave is paid for 18 weeks only.  Users should add a reminder to remove the item from the Employee Record on the termination date.  To add a Reminder in QuickBooks:

  1. Company > To Do List > To Do > New;
  2. Add a note in the Notes box like:  last payment of Paid Parental Leave for Employee Name is on dd/mm/yyyy;
  3. In the Remind me on box, enter the date of the second last payment;
  4. Click OK to save;
  5. Edit > Preferences > Reminders > Company Preferences;
  6. Ensure that To Do Notes are checked for either Show Summary or Show List;
  7. Click OK to save.

 

Additional Information

Click here for more information on Paid Parental Leave from the Family Assistance website.

https://www.familyassist.gov.au/payments/family-assistance-payments/paid-parental-leave-scheme/

 

 

 

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