"Backdating" of COID

[Paul T]

Afternoon all, a client has a number of employees on payroll and has transferred a portion of them to a 2nd company's payroll (a connected party via common ownership and control) with effect from 1 May.

The client has asked whether we can recover the payroll costs of the transferred employees for March and April (Back to start of financial year) - of course, the answer is yes via invoicing - but does that mean that the Mar-Apr payroll will impact the 1st company's next COID assessment that paid those transferred staff or can the it be included in the 2nd company's next COID assessment ? Your assistance is appreciated.

[Dave A]

I suggest you're allowing the issue of financial recovery of costs to interfere with your thinking on the date of transfer of employment.

It is the date of transfer of employment that will inform where the COIDA liability for any given period will reside.

[Paul T]

Thanks Dave - so back to the question to make sure that I understand: does the fact that the transferred employees were processed in March and April on Co A's payroll make any difference therefore, if the employment was transferred effective 1 March but after the fact (in May)?