Continuing Workcover payments for a terminated employee

Question

I currently have 2 staff on Workcover that we have either terminated, within the last week, or are about to (as per Workcover Vic and Fair Work rules). Even though they are terminated, as their previous Employer we are still obliged to make their payments on WorkCovers (or Insurers) behalf, silly system.

My questions is as follows: How do we terminate them in MYOB and still make these payments as well as report them to the ATO as per STP2 rules? We are required to process these payments through payroll, to process them through payroll we are unable to add a termination date to their card file which means they still show on our system as employed.... very messy.

Is there a way to do this and show them as terminated? I have looked on both the Forum and Website but have not found anything even remotely helpful, has anyone else experienced this and if so how did they work around it.

Thanks in advance

Sarah

leneth_a · Answer

Hi SarahJB,
&nbsp;
Thanks for your post and welcome here to the Community Forum. Apologies for the delay in responding and I appreciate you sharing your concerns.
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Regarding your inquiry, if the employee has already been terminated on the system, we won't be able to process the payments. It would be best to process the payment first before terminating the employee.
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Please feel free to post again if you need further assistance in the future.
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If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.
&nbsp;
Cheers,Leneth

sarahjb · Answer

Thanks Leneth,If it was just the one payment then it would be simple however the problem is that we are required to make ongoing weekly payments for this ex employee for as long as they are entitled to WorkCover payments, which could be months or even years.&nbsp; These payments need to ne reported to the ATO as&nbsp; there is PAYG tax payable on them, hence my dilemaHoping there is some other solution as there will be another employee in the same situation in 3 weeks.Thanks Sarah&nbsp;&nbsp;

leneth_a · Answer

Hi SarahJB,&nbsp;&nbsp;Thanks for letting me know and thank you for more information about your concern.&nbsp;The other option is if the employee was terminated, you may activate the employee card file again, process the employment termination payment (ETP), and after you reported to the ATO you may deactivate it again. You can find more information about this in our help article Processing an employment termination payment (ETP).&nbsp;&nbsp;
Please let me know if you need further help.&nbsp;If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.&nbsp;Cheers,&nbsp;Leneth

sarahjb · Answer

As mentioned twice now, these payments are to be ongoing weekly and are NOT one off payments.&nbsp; So in light of that are we to activate and reactivate the card eack week?&nbsp;There must be some alternative.&nbsp;Thanks Sarah

leneth_a · Answer

Hi SarahJB,&nbsp;
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Thank you for adding more information of your concern. We genuinely appreciate it.&nbsp;
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I understand that you are looking for some other alternatives to record a workover payment for the terminated employees. However, the card will have to be active to make payments against it. As of now, the only way is to activate the employee card file again to process the employment termination payment and deactivate it again after you have reported to the ATO.
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You can also find more information about this in our Help Article Paying workers' compensation.
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Feel free to post again anytime you require further assistance.&nbsp;
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If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.&nbsp;
&nbsp;
Cheers,&nbsp;
Leneth

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