Parental Leave

Parental Leave

What is Parental Leave

  • Parental leave is a legal entitlement to time off work available to new parents.
  • The leave is to provide employees with the opportunity to care for their newborn baby or an adopted child under five years.
  • There is a tax funded payment available to parents.

Information on what paid and unpaid leave is available for new parents can be found on the Employment New Zealand website.

Parental Leave (or maternity leave) is usually unpaid leave. During this time the employee may be eligible for payments from the Inland Revenue for paid parental leave. Employees can apply for paid parental leave by completing the form on the Inland Revenue website.

While the employee is on Parental Leave they should continue to accrue leave entitlements.

Put a person on Parental Leave

  1. Go to People > View People
  2. Select a person then go to Leave > Parental LeaveParental_Leave1.png
  3. Enter the official Parental Leave start date.
  4. Enter the official Parental Leave planned end date.
  5. Enter hours for Parental Leave without pay transaction for each pay period.
  6. Select the Start Parental Leave buttonParental_Leave2.png
  7. Go to the person's Timesheet Template to see the person is now on Parental Leave without payParental_Leave3.png

Annual Leave accruals affected by Parental Leave

You can view the pay periods where Annual Leave accruals are affected by Parental Leave.

  1. Go to People > View People
  2. Select a person then go to Leave > Accrual HistoryWHITE__Mary_s_Accrual_History___Payroll_Service_New_Zealand___iPayroll__.png

With the correct pay periods being marked as affected by Parental Leave, iPayroll is able to correctly calculate future entitlements, and future payments due when Annual Leave is taken and the payment due is affected by Parental Leave until it is all used up. 

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