Government Paid Parental Leave payroll FAQs
I have several businesses. Do I need to register each business individually or can I just use the single Business Hub registration?
A separate registration is required for all ABNs. That is, if you’re running your business via more than one ABN, each ABN with employees accessing Paid Parental Leave (PPL) must be registered separately.
I have not yet received any PPL payments from Services Australia. Do I still need to process a payment to my employee using business funds?
No, as the employer, you are required to process the employee’s PPL payments as part of the usual payroll process, but NOT until after you have received the funds from the Government to do so.
My employee has resigned during their PPL period. Do I still need to continue to pay the rest of the PPL amounts?
No. If your employee resigns during the PPL period, you must notify Services Australia immediately via the Business Hub and they will confirm with you to cease the payments.
Am I required to continue to accrue Annual Leave, Long Service Leave and Sick Leave while my employee is receiving PPL payments?
If your employee is accessing certain forms of paid leave, including company paid parental leave (excluding government PPL), annual leave or long service leave (depending on the state of territory) while on unpaid parental leave, they are entitled the usual leave accruals. If you are unsure it is always best to check your employer obligations via Fair Work.
Do I need to pay Superannuation Guarantee obligations on PPL amounts?
No. There are currently no superannuation guarantee obligations with respect to PPL payments, though this is set to change in July 2025. An employer can choose to voluntarily pay superannuation during this period but it is not required by law.
Are the payments I make to an employee under PPL subject to payroll tax and workers compensation liabilities?
No. PPL payments do not count as part of wages for the purposes of payroll tax or workers compensation premiums.
Are there any additional employer reporting obligations with respect to PPL payments?
No, there are no additional reporting obligations relating to PPL. An employee’s PPL amounts are included within the W1 figure on a business activity statement and will also form part of the gross wages reported on the employee’s single touch payroll finalisation report at the end of the financial year.
These functions should all be automatically integrated via your payroll system if set up correctly.
I cannot seem to access the employer Business Hub. What am I doing wrong?
To register as an employer for PPL purposes and gain access to the Business Hub for electronic communication, you first need to obtain a Provider Digital Access (PRODA) account for the business. This process includes a 100 point identity check for the business owner. Your personal PRODA account need to be established first, then you can link this to your business account. You cannot access the online services via Business Hub UNLESS you have first registered via PRODA.
My employee only works part-time. Do I pro-rata their PPL payment to account for their part-time hours?
No. Everyone gets the same PPL rate regardless of previous pay rates or working hours.
I have not yet received my first PPL payment and I have a payrun due to be processed this week. What do I do?
If you have not yet received your first round of PPL payments, log in to your Business Hub account and double check previous communication from Services Australia. Did you receive the Employer Determination Letter? Did you respond to this letter accepting the appointment? You should also confirm the intended start date your employee nominated for the payments as this may actually be later in their leave period.
You can read more about setting up your payroll for PPL here
This resource was developed with thanks to Kyah Glasson, Partner, Eagle Financial.
