The government –funded paid parental leave scheme provides financial help for guardian (parents) to allow them to take time off work in the early months following the birth or adoption of a child.
Parental leave pay provides suitable working parents, usually mothers with up to 18 weeks of pay at the rate of National Minimum wage. From 1 January 2013 onwards the paid parental leave scheme is expanded to comprehend a new payment for Dads or partners. Dad and partner pay will help to give eligible workings dad or partners with up to two week of salary at the rate of the National Minimum Wage. Payments made under the Paid Parental Leave scheme are taxable.
In most of the cases, employers commit an important role in the Leave parental scheme because Parental leave Pay is provided to eligible parents by their employer. If taxpayers are an eligible employee, he will get funds from department of Human services before he needed to provide parental leave pay to their employee.
Parental Leave Pay is paid to employee in the same manner you would normally pay their wages and salary .
As an employer, taxpayers must provide Parental Leave Pay to an eligible employee who:
- Has a newborn or recently adopted child
- Has worked for you for at least 12 months before the expected date of birth or adoption
- Will be your employee until at least the end of their Paid Parental Leave period
- Is Australian-based, and
- is expected to receive at least 8 weeks of Parental Leave Pay
Taxpayers business must have an Australian Business Number to participate in such scheme.
If your employee does not qualify the above criteria, they are not required to provide Parental Leave Pay. However, if they both agree, they can still choose to provide it to your employee if they are eligible. They need to register for Centre link Business Online Services and then opt-in to provide Parental Leave Pay before their employee files their claim for the scheme.