There may an occasion where you need to pay an employee Work Cover due to a work related injury or illness. The rate at which this needs to be paid will be according to Legislation. And in some instances Awards, Enterprise Agreements or Employment Contracts may specify a higher compensation payment.
When you make a Work Cover payment in WageEasy you can specify what portion of the payment will be claimed from your Compensation Authority and what you, as the employer, are responsible for. This will be as your arrangements with your Compensation Authority. Prior to making the payment you should ensure that the Work Cover is setup on the Award or the Employee correctly.
Award Setup for Work Cover
You setup the common settings for Work Cover for the chosen Award. These parameters will be used for all employees attached to the Award.
Go to Setup, Awards.
Edit the Award you need to update.
Select Payments and then WorkCover.
Enter the portion the Compensation Authority will cover, e.g. 85% in WorkCover Payment (%).
If you need to top up the payment to the employee's full amount tick Employer To Make Up Full Wage. When the pay is entered the difference between the WorkCover Contribution and the Employee's full amount will be calculated as the Employer Contribution.
If there is a specified employer portion, enter the percentage in Employer Payment (%). When the pay is entered the Employer Contribution will be calculated based on this percentage.
You can use Maximum Payment if there is cap on the maximum amount paid.
Use the Base Pay Rate Loading (%) to include any loading (e.g. Casual Loading) in the calculation.
Click Close to save.
Employee Setup for Work Cover
You can also setup the WorkCover parameters directly on an Employee's record. This is useful for an employee who is on extended WorkCover and the payments have been reduced, e.g. 80% and will overrule the Award setup.
Go to Employee, Edit Employee.
Find the Employee you need to update.
Select Payments and then WorkCover.
By default, when you first enter the screen Use WorkCover Conditions from Award will be selected. If you need to override the Award for this employee, click Individual WorkCover Conditions for the Employee.
Enter the portion the Compensation Authority will cover, e.g. 85% in WorkCover Payment (%).
If you need to top up the payment to the employee's full amount tick Employer To Make Up Full Wage. When the pay is entered the difference between the WorkCover Contribution and the Employee's full amount will be calculated as the Employer Contribution.
If there is a specified portion that, enter the percentage in Employer Payment (%). When the pay is entered the Employer Contribution will be calculated based on this percentage.
You can use Maximum Payment if there is cap on the maximum amount paid.
Use the Base Pay Rate Loading (%) to include any loading (e.g. Casual Loading) in the calculation.
Click Close to save.
To Pay Work Cover to an Employee
Go to Wages, Time Sheet.
Select the Employee.
Enter the worked hours on the Time Sheet screen. If the whole of the period is to be paid as Work Cover, click in the timesheet area and then click Clear.
Click Next.
On the Adjustment screen, select WorkCover on the left, then click Add.
This will open the WorkCover Payment Wizard. Click Next.
The WorkCover Conditions screen will default based on the Employee or Award setup depending on which radio button was selected on the Employee's record. Click Next.
Select the Department and Base Pay Rate if you need to change them.
Enter the first day of WorkCover in the From date and the last day of WorkCover in the period in the To date. This will calculate the Number of Days.
Enter the Number of Hours to be paid as WorkCover. Click Next.
Based on the setup on the Award or Employee the Payment Contributions will be calculated. These can be overwritten if necessary. Click Next and then Finish.
The Total Payment for WorkCover will be displayed on the Employee's Pay Slip.
Click Save to save the payment.
To see the breakdown of WorkCover Payments between the Compensation Authority and the Employer go to Reports, Work Cover. You can run the report for the Current Pay Period, Month to Date or Year to Date.