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

  1. In the Settings menu, select Payroll Settings.
  2. Click Pay Items and then click Earnings.
  3. Click Add, then select Ordinary Time Earnings.
  4. 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.
  5. Click Add.

Step 2: Add paid parental pay item to employee’s pay template

  1. In the Payroll menu, select Employees.
  2. Click the employee you want to assign a leave type to.
  3. Click the Pay Template tab.
  4. Change the existing ordinary earnings line hours to 0.
  5. Click Add Earnings Line and select the pay item you created in Step 1: Create a paid parental leave pay item.
  6. Click OK.
  7. On the pay template, enter 1 in Weeks and enter the weekly rate payable in Rate.
  8. Click Save.
No leave is accrued on paid parental leave, so we recommend adjusting your employee's leave accruals in their Leave tab.

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