The new paid family and domestic violence leave entitlements come into effect today for businesses with over 15 employees. For businesses with under 15 employees, the same entitlements will commence from 1 August 2023.
In our previous blog we covered what the new family and domestic violence leave entitlements are under the National Employment Standards (NES) and in this article we will explain what you will need to action within your payroll software to align with the changes.
Jump to instructions for:
In MYOB AccountRight You will have to add the leave category manually.
Do not reference anything about family or domestic violence leave, as it will show on an employee’s payslip and it is against the law to do so.
In MYOB Business you will have to add the leave item manually.
In Xero you will have to add the new leave type manually.
If the employee needs to take the leave, the employee/employer will be able to complete the request and the employer can approve the Leave the same as they would for annual or sick leave.
In Reckon you will have to add the new leave item manually.
To name the leave within Reckon:
This won’t change the name of the leave on the payslip, this will only change the name within the Reckon system for reports etc.
Once the above steps have been completed you will then need to accrue the balance for the employee. This can be set up for all employees in advance or just when required.
The hours available per year will change depending on how many hours a day the employee works. Simply multiply their hours worked each day by 10 to work out the accrual per year.
The amount of leave available will need to reset on January 1 of each year.
On the employee’s payslip you can add in the leave taken using the ‘other 1’ or ‘other 2’ hourly pay items. Use the corresponding pay item (1 or 2) with what you chose to set up above.
This pay item will reduce the amount of leave available in the system.
If you want to call this hourly pay item something other than ‘other 1’ or ‘other 2’ on the payslips you can.
Make sure if you change the name of the leave on the payslip or within your system that it won’t identify to anyone outside of the payroll function that it is domestic violence leave. This ensures the privacy of anyone taking this leave and is legally required.
In QuickBooks Online (QBO) you do not need to action anything manually, QBO will update automatically to include the new entitlements.
We will share these steps again before 1 August 2023 as a refresher for small businesses as they make the change.
If you require any payroll support, or are looking to upgrade your payroll software – please contact us at firstname.lastname@example.org or call us on (03) 5444 0344.