As of 1 July 2011, businesses which fail to fulfill the Federal Government’s new ‘paid parental leave’ obligations will receive penalties imposed by the Fair Work Ombudsmen.
Businesses should update their payroll systems to make sure they are fulfilling all relevant obligations. These include:
- Withholding tax from Parental Leave Pay under the usual PAYG withholding arrangements.
- Include Parental Leave Pay in the total amounts on their employee’s annual payment summaries.
- Provide bank details, employee’s usual pay cycle and pay cut off details to the Department of Human Services Family Assistance Office.