Employers providing Parental Leave Pay
You should provide Parental Leave Pay to your employee in the same way in which you pay salary or wages.
Receiving funds
You will receive the funds from us before you need to provide Parental Leave Pay to an employee. There is no obligation to provide Parental Leave Pay to an employee until you have received the required funds from us.
We will electronically transfer the funds to your nominated bank account before your employee’s usual pay-cycle cut-off.
You can receive the funds fortnightly throughout the Paid Parental Leave period, or you can choose to receive the funds in three six-weekly instalments.
Your employee may not receive their Parental Leave Pay on their nominated start date, and, in that case, their first payment may contain arrears for a previous pay period.
We will provide notification about the funding amount (either electronically or in another written form) each time an amount is deposited into your account. If you have multiple employees receiving Parental Leave Pay, the advice will provide details relevant to each employee.
Making payments to employees
You should provide Parental Leave Pay to your employee in the same way in which you pay salary or wages.
The only deductions that can be made from your employee’s Parental Leave Pay are:
- PAYG withholdings
- Child Support (if your employee has a Child Support liability)
- deductions that your employee has authorised and that are principally for their benefit.
You are not required to make superannuation contributions in respect of Parental Leave Pay.
The Paid Parental Leave scheme does not prevent you from making voluntary superannuation contributions in respect of your employee's government-funded Parental Leave Pay.
Parental Leave Pay will not be subject to payroll tax or give rise to additional liability for workers’ compensation premiums.
Notifications
You will need to give your employee written notification of their Parental Leave Pay within one working day of paying it. This can be on the usual payslip, or in a separate notice such as a letter or email.
For more information read the Employer Toolkit or call our National Business Gateway on 131 158.