18.104.22.168 When an Employer is Required to Pay an Instalment of PLP
Employer determination in force on a day during the instalment period
- an instalment is payable (there are one or more PPL days (1.1.P.170) in the instalment period for the instalment),
- an employer determination (1.1.E.60) is in force on a day during the instalment period to which the instalment relates, and
- the employer has been paid enough to fund the instalment as at the payroll cut-off day.
Employer determination comes into force after the instalment period
An employer may become required to pay an instalment after the start of a person's PPL period (1.1.P.200). In this situation, where neither Centrelink nor the employer was required to pay an earlier instalment but would have been if one or more instalments were payable from the start of the person's PPL period, the instalments are taken to have become payable. Provided the employer has been paid enough (1.1.P.10) to fund the earlier instalments, the employer must also pay them with the next instalment.
Employer determination in force & employer paid enough at a later time
If the employer has not been paid enough to fund an instalment at the payroll cut-off for the instalment and this is rectified at the payroll cut-off for a later instalment, then the employer must pay the instalment to the person on the payday for the later instalment period.
The payroll cut-off is the last day in the employee's pay cycle that the employer can reasonably make changes to the instalment to be paid to, or in relation to, the person on the person's payday for the instalment.
An employer is taken to have complied with a requirement to pay an instalment on a payday if the instalment is paid before the payday or, if the employer cannot pay on the day, as soon as practicable after that day.
A failure by the employer to pay instalments as required may result in a financial penalty.
An employer is not required to pay an instalment to a person except in accordance with the above.
Act reference: PPLAct section 72 When an employer pays instalments, section 91 Effect of the Secretary or employer becoming required to pay instalments after the start of the PPL period, section 95 Paying instalment on payday for later instalment-no later instalment, section 96 Paying instalment on a particular day-complying with obligation
Policy reference: PPL Guide 6.1 Employer Determinations for PLP