Page Comparison - Paid family and domestic violence leave - Australia (v.39 vs v.40) - PayGlobal

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Introduction

The Australian Government has introduced paid family and domestic violence leave (FDVL) for all employees. This

will take

took effect on 1 February for employers with

15 or more employees

on 1 February 2023 andless than 15 employees

, and will begin on 1 August

2023.To learn more about the changes, please refer to the following pages published by Fair Work Ombudsman:

Below are the key call outs for customers using MYOB PayGlobal.

for smaller employers.

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Grace period till 4 June The ATO are giving employers until 4 June to update their payroll systems for this change

We've compiled some information about the key changes impacting employers and employees, and are also seeking guidance from the relevant authorities about some issues that we think need to be clarified further.

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title	Key changes

The key changes impacting employers and employees in Australia as per the above Fair Work Ombudsman links are:

Entitlement changes from 5 days unpaid to 10 days paid.
New employees that commence on/after the effective legislation date get 10 days from 1st day of employment – they do not have wait for 12 months anymore.
Existing employees on the effective legislation date, will have their existing balances reset to 10 days. When their next employment anniversary falls, the balances are required to be reset again to 10 days.
- This does mean some employees could legitimately access to more than 10 days paid within the first 12 months of the effective legislation date.
Leave can be taken in any quantity either continuously or not, for example 1 hour here and there or 10 days in one block or any combo in between.
FDVL supersedes other leave.
- If employee is on Annual or Sick leave and they need to take FDVL, then the FDVL would replace the other leave.
- There will be no difference to an employee getting sick whilst on annual leave. This means existing leave requests would need to be replaced/modified. “Other leave payments” may need to be reversed so that the other leave balances and liabilities get credited back what was replaced by FDVL.
Casual employees can take FDVL outside their rostered hours of work. But the employer is only required to pay FDVL for the days/hours they were rostered. This does not stop the employer from paying generously although they are not required to.

Key issues

The following issues have been raised with Australian Taxation Office (ATO) and Fair Work by Digital Services Providers Australia New Zealand (DSPANZ)

Pay slips must not mention paid family and domestic violence leave, including any leave taken and leave balances.
- From 4 February 2023, an amount paid to an employee for taking paid family and domestic violence leave has to be recorded on a pay slip as ordinary hours of work, or another kind of payment for performing work, such as an allowance, bonus or overtime payment.
- However, if an employee requests it, their employer can record time taken as paid family and domestic violence leave as another type of leave on their pay slip (for example, annual leave).
- It is best practice for their employer to record this on their pay slip in a way that makes the pay slip look as close as possible to how it would have looked if the employee had not taken the leave.
STP reporting of FDVL amounts should match that of the payment type shown on the employee's payslip. This may be any of the following:

Gross, if shown as an employee’s ordinary hours of work
A payment made in relation to the performance of the employee’s work, including (but not limited to) an allowance, bonus or a payment of overtime
Other Paid Leave, where requested by the employee (or, before 4 June 2023, where an employer is making use of the grace period contained in the regulations), an amount paid for taking a period of another type of leave (other than a period of paid family and domestic violence leave).

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title	Key issues

We are still waiting for guidance from Fair Work Australia on the following issues:

Clarification on how an employer can validate an employee received their full rate of pay.

For example, should it just be the planned work hours that get replaced in payroll or should all pay items be replaced with FDVL using a consolidated rate.
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Until we receive guidance from Fair Work/DSPANZ, employers should seek independent legal/financial advice on how FDVL should be represented within the payroll system.

How

the leave is to be reported in Single Touch Payroll (STP)

Safety concerns have been raised in respect to the employee’s MyGov account/annual income statements being accessed with additional value now showing up.
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Until we receive guidance from the ATO, employers should seek independent legal/financial advice on how FDVL should be reported within STP.

What to display on Payslips for FDVL payment(s) and leave balances

Legislation says it must be included but the same safety concerns apply as for STP.

How

'part-day' leave is to be calculated

.Especially

, especially if the employee is also entitled to incentive-based payments such as bonuses, loadings, monetary allowances, overtime or penalty rates and any other separately identifiable amounts.

Setting up paid FDVL in MYOB PayGlobal

How

to implement this change into MYOB PayGlobal

For those customers who have you set up paid FDVL in MYOB PayGlobal depends on the rest of your setup. If you're using the leave credit system, see the Leave Credits Manual for detailed information. If you have a different setup, or want help to implement FDVL using leave credits, contact a consultant thorugh PayGlobal support or your account manager.

If you have already implemented unpaid FDVL using the Leave Credits functionality, if you need to leave credits functionality:

If you create a new

Allowance

allowance record for paid FDVL, make sure you

will need to

replace the instances where the old unpaid allowance is used.

This

You may

involve edits

need to change your ESS workflow,

Leave Credit Table Leave Credits, Custom Reports, Award, and/or Payroll

leave credit table leave credits, custom reports, award or payroll rules depending on your current configuration.

If nothing is recorded in your payroll system as yet, you will need to you have not configured FDVL at all, consider doing so, especially if as the ATO requires the earnings to be reported via STP.

To manage leave requests and the 10-day balance, use PayGlobals leave credit framework.

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With the outstanding issues mentioned above, it is unlikely to have a standard configuration solution. As such if you require assistance with modifying your setups and payslip reports, Professional Services can be engaged If you need the ability to set the allowance up using another reporting category (for example ordinary hours, allowance, or overtime) then contact our professional services team for a custom solution, charged on a time and materials basis. Please To arrange this, contact PayGlobal Support support or your Account Manager to discuss furtheraccount manager.

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Versions Compared

Old Version 39

New Version 40

Key

Introduction

Key issues

Setting up paid FDVL in MYOB PayGlobal