Historical recording and correcting employment income details (prior to 07/12/2020) 108-22063045

Table 1

Item

Description

1

Assessing IOP earnings for a short entitlement period before 7 December 2020 changes If the customer's entitlement period is for 11 days and the customer has earned $220.00 for work done on some or all of those 11 days during this period we assess the income for the shorter entitlement period as follows: $220.00/11 (days in the period) = $20 per day If the $220 is incorrectly divided by 14 days an incorrect daily amount will be reached as follows: $220.00/14 = $15.71 per day When recording IOP income for a short entitlement period, ensure the correct daily amount is assessed by checking the PFAR or NIS screen. If not, multiply the daily amount by 14 and record this amount as the IOP earnings and then re-check to ensure the correct daily amount is assessed as follows: $220/11 (days in the period x 14 = $280 $280/14 = $20 per day

Table 2: The transition period is the customer's entitlement period that contains the legislative commencement date of 7 December 2020, as follows:

RAD	EPSD	EPED
A	24/11/2020	07/12/2020
B	25/11/2020	08/12/2020
C	26/11/2020	09/12/2020
D	27/11/2020	10/12/2020
E	28/11/2020	11/12/2020
2	01/12/2020	14/12/2020
3	02/12/2020	15/12/2020
4	03/12/2020	16/12/2020
5	04/12/2020	17/12/2020
6	05/12/2020	18/12/2020

When coding employment income under the 'earned' and 'paid' model, make sure income is not counted twice. If a customer provides payslips covering both the earned and paid model, and their income has not been reported and coded on the system, code:

• all paid income amounts on the EAPP screen from the transition entitlement period, and
• all earned income amounts on the EAN screen

To reduce any duplication of income, staff will either:

• deduct any earned income coded on the EAN screen from the paid income amount during the transition entitlement period, or
• only code earned income up to the pay period start date of the paid income amount during the transition entitlement period

For more details, see Transition Period Calculation Example.

DOC any calculations. The online calculator can be used to assist with calculating the correct amount to report during the transition period.

Note: for assistance with correct Date of Event (DOV) coding, see Determining the Date of Event for Employment Income.

Conversion of continuous income

Customers with existing continuous employment income recorded on the Employment Income Details (EAN) screen or Foreign Income/Asset Details (FID) screen before 7 December 2020, automatically had their employment income changed to the new:

• Employment Income Paid Details (EAPP) screen, or
• Foreign Employment Income Paid Details (FEIP) screen

If a customer contacts to change their 'converted' continuous income, a Service Officer needs to code a change.

If the customer has income coded on the EAPP screen due to a conversion (CNV), the income will show on the EAN screen:

See EAN IMAGE 1 in EAN/EAPP screen coding.

• On the EAPP screen, code the new income amount using the Date of Event (DOV) as the date the customer is paid by their employer
• If the date paid is on or after the EPSD, end the previous income conversion coding from an earlier DOV. This is to make sure the income is assessed correctly
• The DOV to zero off conversion coding is the day after the last date paid by the employer. That is, date last paid by employer + 1

If the customer contacts to change the new continuous income amount:

• Do not zero off previous income
• Code the date paid and new amount, then income will assess correctly
• If the customer ceases employment, zero the income using DOV as the date last paid by employer + 1

Example

Customer has continuous income coded of $1,200 per fortnight with the DOV as the EPSD of transition entitlement period 24 November 2020.

Customer contacts on 18 January 2021 to advise:

• their income has changed to $1,000, and
• the date paid by their employer is 12 January 2021

If the Service Officer only codes 12 January 2021 with the amount of $1,000, the system will assess both income for 12 January 2021 and the notional pay event of $1,200.

The Service Officer must end the conversion coding.

The customer advises they were last paid $1,200 on 29 December 2020.

The Service Officer must code '0' with a DOV 30 December 2020. That is, they code on the EAPP screen the date last paid by employer + 1.

See EAPP IMAGE 1 in EAN/EAPP screen coding.

Coding a zero, will cease the notional pay event for the 5 January 2021. The new income correctly displays on the EAN screen.

See EAN IMAGE 2 in EAN/EAPP screen coding.