Worker Compensation

How to Pay Workers Compensation or Work Cover

Workers compensation is monitored by different states and territories. Each state and territory has their own regulator that administers and gives advice on workers compensation. You can contact the workers compensation regulator in your state or territory:

Create a new Pay Category.


Payroll > Manage Payroll > Payroll Settings >Pay Run Settings > Pay Categories
 
💡Please Note: When creating the Pay Category, please select “Payroll Tax Exempt” and no SG contributions are available for employees who haven’t returned to work and then Save this Pay Category.


Under the superannuation guarantee (SG) laws, there is no need to pay super to a worker who is on workers' compensation and unable to work. This is because workers' compensation payments made to a person who isn't working are neither: 'salary or wages' nor 'ordinary time earnings'.


However, if and when the employee returns to work and still receives workers' compensation payments at that time, you can start paying Superannuation on the hours they are work.


Payroll > Manage Payroll > Find an Employee "search up name"

  1. Open the employee’s payroll profile and then go to the Pay Rates.
  2. Untick the Show in Payrun option against the Permanent Ordinary Hours and select the “Show all Pay Categories” and then scroll down to the Worker Compensation (or Ctrl + F and search up Worker).

 
3. Scroll down to the bottom of the page and then press “Save”.

Then create a new payrun or create an ad hoc pay run and add the employee. 



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