How to set up Parental Leave and Government Parental Leave Payment in HeroPay?

If you have employee who will take unpaid Parental leave shortly, follow below step to create leave category and pay category for Parental leave on Payroll platform

1. Create leave category for Parental leave

Follow instruction at section 3.2 Leave Category at this manual Employment Hero Payroll - Payroll Processing

Since the leave is unpaid, below is the option you can choose when creating the leave category

  • Employee leave balance - Not Tracked
  • Payment Set up - Don't pay for the leave taken


Once the leave category is created on Payroll, you then can update on HR platform so that employee can apply for the leave on HR platform. Follow instruction in this link to update leave category on HR. Please note we currently allow a leave request with 90 days period and we have a feature request under review to remove this restriction. In the interim, employees will need to submit their leave request in batches if their leave extends beyond 90 days.

2. Create pay category for Parental leave pay

Follow instruction at section 3.1 Pay Category at the same manual as above Employment Hero Payroll - Payroll Processing

If this is a Government Parental leave payment, below is the option you can choose when creating the pay category

  • Unit Fixed
  • Super rate 0%
  • Tick Payroll Tax Exempt box


The setting means payment is by fixed amount, there is no super contribution and leave accrual for the payment, and finally the payment is exempt from payroll tax. 

Once you have created the Parental leave pay category, you have 2 options to add the payment for employee

1st option: Add the payment manually in pay run by following below steps

  • Create a payrun/ go to the employee
  • Click Action/ Add Earning
  • An earning line will be added to pay run, you can then select "Government Parental Leave Payment" from drop-down menu of the earning line and enter the amount applicable for the pay run. 
  • Save


2nd option: Set up the payment as recurring in for certain period by following below steps

  • Go to the employee/ Pay rates
  • Scroll till the end of page and you can see section "Additional earnings lines"
  • Select "Government Parental Leave Payment" from Pay Category drop-down menu
  • Input Earnings per pay run, e.g. 1 unit for Weekly pay run or 2 units for Fortnightly pay run or 4.33 units for Monthly pay run
  • Input Rate in pay run, i.e. $719.35 for FY 18/19
  • Select "All pay runs until the maximum amount has been reached" under This earnings line should be included in, and enter maximum amount, i.e. $12,948.3 for FY 18/19. This setting means system will automatically add Parental leave pay for the employee from next pay run till the pay run where the maximum amount has reached. 
  • Save

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