Parental Leave Pay (PPL) debts between employers and employees 107-04070020
Expand allFor Paid Parental Leave Employer Processing Team (PPLEPT) staff.
This document outlines how to identify who is responsible for repaying the PPL debt and to apportion Parental Leave Pay (PPL) debts between employer and employee.
On this page:
Investigating underdetermined PPL debts
Actioning a Q318 letter to apportion debts between employers and employees
Financial year and Australian Taxation Office (ATO) details when a PPL debt was actioned
Investigating underdetermined PPL debts
Table 1
Action | |
PPL debt rolesThe Paid Parental Leave Employer Processing Team (PPLEPT) are responsible for:
Debt Staff are responsible for:
If a PPLEPT Service Officer is allocated a:
PPLEPT Service Officer, if there is a due:
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Employer debt shellWhere a change of circumstance is notified, a debt shell may generate for the PPLEPT to investigate and if required, send a Q318 letter to the employer to find out from whom the debt should be recovered. Note: before contacting the employer or send a Q318, checks must be done to make sure a Q318 has already been issued to the employer, the debt shell is correct and that the debt falls under the small debt waiver threshold and provisions. There are circumstances where a debt shell is created incorrectly due to:
Where the Q318 is not required to be issued to an employer, and the debt is to be:
To proceed with the Q318 process, go to Step 3. | |
Identifying an undetermined PPL employer debtIf exceptional circumstances have occurred, such as the death of the PPL claimant, staff must request the employer urgently return the Q318 to minimise debt impacts. If exceptional circumstances:
Was the first attempt to contact the employer's authorised officer/authorised contact successful?
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Unsuccessful contact with the employer's Authorised OfficerOn the employer’s record in Customer First:
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Attempt second or subsequent phone contactWhen the debt shell/Investigation <Debt ID> DOC falls due, make a second genuine attempt to contact the employer's authorised officer/authorised contact using:
Was the second attempt to contact the employer's authorised officer/authorised contact successful?
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Sending the Q318 letterThe letter has the following details:
The notice will tell the employer:
Where a liquidator is appointed or registered to a business the OSCS screen and a display on access (DOA) DOC will be updated with the authorised contact details. Before running the Debt Action script, check the debt shell amount and obtain the following information:
Note: to be accepted by PPLEPT, the Q318 letter must be signed by the employer's authorised officer (unless the employer is in liquidation). To send the Q318, go to Step 7. | |
Run the Debt Action script to send a Q318In Customer Record, go to the employer's record and open the Debt Action script. Note: make sure the letter complies with the mandatory standards, see the Resources page. When writing the employer or employee's name (whether alias or preferred name), only use a capital letter for the first letter of each name. In the Debt Action script, check the populated information is correct and update the following sections:
For the Q318 information request - debt investigation - letter options:
Is the employer registered for Business Hub?
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Create a task in Process Direct for the employer to upload the Q318 responseFor employers to upload a document in Business Hub, a task must be initiated. This must be done on the same day the 'Q318 information request' letter is sent. Before creating the task for the employer, obtain the following employee details:
To create a task in Process Direct:
After the task is created:
In the employer's PPE record in Process Direct:
Procedure ends here. | |
Allocated a returned Q318 or work itemThe employer has 14 days to respond to a Q318 request, allowing extra time for mail delivery. Before raising debts, check the Process Direct Inbox for a returned Q318 work item. To view if the employer has provided a Q318 via Business Hub, select the Process Direct Inbox tile:
If the employer has:
Has the employer returned a Q318?
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Q318 returned via CBOS or Business HubIf the Q318 is returned via:
In the Process Direct Inbox, update the Transaction status by:
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Q318 is returned via email (PPLINFO mailbox)On the employer's record in Process Direct:
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, an Additional Details pop-up box will appear
Actioning a Q318 letter to apportion debts between employers and employees
Table 2
Action | |
Review the Q318Check the Authorised Officer has signed the Q318. The Australian and overseas Authorised contacts must sign (includes electronic signature) and print their legal name (includes electronic) on the Q318. A Q318 signed by an Authorised contact using their preferred name cannot be accepted. To make updates to an Authorised contact's name, see Employer registration for Parental Leave Pay (PPL). Check if the business is registered for Business Hub (Bhub). If the business:
When reviewing the Q318, check to ensure:
If Q3 has a $ value and Q2 has Nil, staff must make one genuine attempt to contact the employer to confirm the completed Q318. If contact is unsuccessful:
Has the employer completed the Q318 correctly?
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Check the PPL amount the employer has paid the employeePPLEPT to make appropriate checks before actioning the Q318 to make sure the debt shell is still correct. If the employer has received PPL, and:
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Employer has received PPL but has not paid any amounts to the employeeRaise the debt against the employer, noting the date of receipt for the returned Q318. In Customer Record, go to the employer's record and open the Debt Action script. In the Debt Action script, check the populated information is correct and update the following sections:
Where the Q318 is not returned via Bhub (email), staff cannot update the work item status in Process Direct. To update the work item status:
Note: the system will automatically cancel the work item 16 days after the date it was created. Procedure ends here. | |
Employer has received PPL and has paid all the PPL to the employee (including withheld and PAYG amounts)To raise the debt for the gross amount on the employee record, noting the date of receipt for the returned Q318. In Customer Record, go to the employer's record and open the Debt Action script. In the Debt Action script, check the populated information is correct and update the following sections:
Where the Q318 is not returned via Bhub (email), staff cannot update the work item status in Process Direct. To update the work item status:
Note: the system will automatically cancel the work item 16 days after the date it was created. | |
Update the debt shell on employee's record for full PPL paidUpdate the debt shell with the details from the Q318 and out the activity for the Debt team to review and raise. In Customer First, go to the employee's record and update the debt activity:
The debt notice (Account Payable) explains to employees they can ask for a refund of the PAYG withholding amount included in the debt. They can request this from either their employer or the Australian Taxation Office (ATO). This will depend on:
Procedure ends here. | |
Employer has received PPL and some of the PPL has been paid to the employee (including withheld and PAYG amounts)Raise a debt against the employer for all amounts not paid to the employee, noting the date of receipt for the returned Q318. In Customer Record, access the employer's record and open the Debt Action script: In the Debt Action script, check the populated information is correct and update the following sections:
Where the Q318 is not returned via Bhub (email), staff cannot update the work item status in Process Direct. To update the work item status:
Note: the system will automatically cancel the work item 16 days after the date it was created. | |
Update the debt shell on the employee's record for partial PPL paidThe PPLEPT will update the debt shell with the details from the Q318 and out the activity for the Debt team to review and raise. In Customer First, go to the employee's record and update the relevant debt activity on the Modify/Assess Debt (OPMA) screen:
In the Nxt field, key AL and find the relevant debt shell:
Procedure ends here. | |
Q318 incorrectly completed or not returned and debt not yet raisedIf allocated a due undetermined debt shell and the Q318 has not been returned or incorrectly completed, go to Step 9. If the undetermined debt due date has not yet lapsed (HLD) but the employer has provided an incorrectly completed Q318, make one genuine attempt to contact the employer to discuss:
On the employer record, in Process Direct:
Procedure ends here. | |
Q318 not returned or incorrectly completedThe PPLEPT team are:
In Customer Record, access the employer's record and open the Debt Action script: In the Debt Action script, check the populated information is correct and update the following sections:
Where the Q318 is not returned via Bhub (email), staff cannot update the work item status in Process Direct. To update the work item status:
Note: the system will automatically cancel the work item 16 days after the date it was created. Procedure ends here. | |
Review a provided or amended Q318An employer may respond outside the 14 days to a previous Q318 request for the following reasons:
Based on the amended information, previously raised debts on the employer and/or employee record may require being amended and/or new debts raised. Based on the Q318 responses, decide the action(s) required to the employer and/or employee's debt (there may be multiple). To:
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Amending a raised employer debt not fully recovered due to amended or corrected Q318If the employer has given more details that requires a debt to be amended, take note of the Debt Id to be amended. When running the Debt Action script, if the Debt end date is a future date and error 'End date cannot be in the future' presents on the employer's record in Process Direct:
In Customer Record, access the record to be amended and open the Debt Action script: In the Debt Action script, check the populated information is correct and update the following sections:
In Process Direct, upload the Q318 letter, via the Documents icon. Where the Q318 is not returned via Bhub (email), staff cannot update the work item status in Process Direct. To update the work item status:
Note: the system will automatically cancel the work item 16 days after the date it was created. | |
Amending a raised employer debt fully recovered due to amended or corrected Q318Before amending, if the Debt end date is a future date, on the employer's record in Process Direct:
If the employer has given more details that need a fully recovered debt to be amended, in the employer’s record go to Customer First to manually amend a fully recovered debt on the OPDL screen:
On the employer's record, in Process Direct:
Where the Q318 is not returned via Bhub (email), staff cannot update the work item status in Process Direct. To update the work item status:
Note: the system will automatically cancel the work item 16 days after the date it was created. If the debt becomes over recovered, in Customer First:
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Amending an employee debt due to amended or corrected Q318On the employee's record, check if a manual (undetermined) debt shell was created or if a debt has been raised based on the original (previous) Q318 response from the employer. Actions required will vary depending on the debt status in response to the original Q318. Based on the new Q318 response from the employer, has PPL been paid to the employee?
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Debt status - debt already raisedEmployee had a debt raised in relation to the original (previous) Q318 response from the employer. Debt already raised:
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Debt status - Undetermined debtIf an undetermined debt shell is still required, on the employee's record, go to Customer First and update the relevant debt activity with the new debt components (period/amount).
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Manually raise a debt on the employee recordIf the employer has given more details requiring a manual debt to be raised on the employee's record, go to Customer First and create a debt activity using the OPAD screen:
Procedure ends here. | |
Manually raise a debt on the employer's recordThe employer may have given more details requiring a manual debt to be raised on the employer record as the original debt has already been made a no debt (zeroed). Note: before running the Debt Action script, staff will need the employer's PPX CRN. In Customer Record, go to the employer's record and open the Debt Action script. In the Debt Action script, check the populated information is correct and update the following sections:
Before selecting OK on the confirm pop up box on the mainframe screen, on the component amount (OPCA) screen > [Enter] > Component type:
Where the Q318 is not returned via Bhub (email), staff cannot update the work item status in Process Direct. To update the work item status:
Note: the system will automatically cancel the work item 16 days after the date it was created. Procedure ends here. | |
Debt already raised, revised Q318 incorrectly completedWhere a debt is already raised and the employer provides a revised Q318 which is incorrectly completed, make one genuine attempt to contact the employer about why Services Australia is not able to accept the revised Q318. If contact is unsuccessful leave a message for the employer to call back to discuss the incorrectly completed Q318. Do not amend the already raised debt. On the employer's record in Process Direct:
Where the Q318 is not returned via Bhub (that is, email), staff cannot update the work item status in Process Direct. To update the work item status:
Note: the system will automatically cancel the work item 16 days after the date it was created. Procedure ends here. |
Financial year and Australian Taxation Office (ATO) details when a PPL debt was actioned
Table 3
Description | |
Debt actionedIf the debt was actioned:
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Debt actioned before the end of financial yearServices Australia will recover the gross amount of PPL overpaid to an employee. This includes Pay as you Go (PAYG) amounts withheld. The employee has the right to a refund of the amount of PAYG withheld. They can ask for a refund of PAYG withheld from either the employer or the ATO. The employer must refund the PAYG amount to the employee before the end of the financial year in which the overpayment occurs when the:
The employer must refund the PAYG amount to the employee even if they have paid this to the ATO. If this is the case, the employer can:
The employer will need to include adjustments in their payroll records. On their income tax return, the employee will include the total:
Procedure ends here. | |
Debt was actioned after the end of financial yearPPL paid by Employer If the overpayment occurred in a financial year prior to the year that it was identified, the employer does not need to refund the PAYG withholding amount. Services Australia will:
The employee will:
If the employee's income assessment for the previous year is not complete, they will get the benefit of the overpaid PAYG withholding amount in the calculation of their tax bill or refund. They may ask for a payment arrangement with Services Australia that will allow them to repay the PAYG amount after they have recovered it from the ATO. PPL paid by Services Australia If Services Australia has paid the employee, the agency will issue an amended payment summary once:
The payment summary will display on the Tax Payment Summary (TXGS) screen. The ATO will automatically get the new tax information electronically. Procedure ends here. | |
Debt was actioned after the end of the financial year and ATO Notice of Assessment (NOA) has been issuedThe employee should lodge an amended assessment application with the ATO using:
The ATO will:
This may result in an additional refund depending on the employee's tax liability. Once fixed, the employee needs to tell government agencies such as Services Australia their revised income details. This may affect their eligibility for payments. If the overpayment of PPL spans two financial years, the above processes apply to the portions of debt that attribute to each financial year. Procedure ends here. |