A reminder to all employers that payments to workers under the Federal Paid Parental Leave Scheme (PPL Scheme) have commenced in relation to children born, or eligible adoptions taking place, on or after 1 January 2011.

The employer role in the PPL Scheme to facilitate payments as “paymaster” is voluntary until 1 July 2011. In order to be prepared for the 1 July 2011 start date, employers should start considering now the changes that they will be required to make to payroll systems, policies and procedures to take account of the new scheme. For example, payroll procedures will need to accommodate the fact that PPL Scheme payments will be liable to have PAYG tax withheld but do not trigger additional leave accruals or form part of “ordinary time earnings” for the purposes of superannuation.