Interest on late workcover weekly payment
Hi
I would like to ask if anyone know how to process payroll regarding Interest resulted from late payment on workcover weekly payment to the employee? That is, when we received interest reimbursement from Workcover agent to back pay to the employee, in this case, how to process this reimbursement to the employee on payroll? This interest does not attract PAYG Withholding according to Worksafe.
Can anyone advise? That will be appreciated.
Regards
Miranda
Hi Miranda_C
Processing payroll regarding interest resulted from late payment on workcover weekly payment to the employee can be quite complex. To reimburse an employee for an expense they've incurred on behalf of your business, you can set up a new pay item. This lets you reimburse the employee for their next pay. See this helpful article about reimbursing an employee for a more detailed guide to the process. Let me know if you need further help!
Kind regards,
Shella