Set up paid parental leave
Set up paid parental leave by creating a custom pay item and adding it to the employee's pay template.
Step 1: Create a paid parental leave pay item
- In the Settings menu, select Payroll Settings.
- Click Pay Items and then click Earnings.
- Click Add, then select Ordinary Time Earnings.
- Complete relevant fields, including:
- Rate Type - select Rates per Unit.
- Type of Units - type Weeks.
- Expense Account - select the expense account the pay is coming from.
- Exempt from Super Guarantee Contribution - select this checkbox.
- Click Add.
Step 2: Add paid parental pay item to employee’s pay template
- In the Payroll menu, select Employees.
- Click the employee you want to assign a leave type to.
- Click the Pay Template tab.
- Change the existing ordinary earnings line hours to 0.
- Click Add Earnings Line and select the pay item you created in Step 1: Create a paid parental leave pay item.
- Click OK.
- On the pay template, enter 1 in Weeks and enter the weekly rate payable in Rate.
- Click Save.
No leave is accrued on paid parental leave, so we recommend adjusting your employee's leave accruals in their Leave tab.