Oncall+Worksafe+Insurance

1. Oncall medical insurance threshold is $692. How does the medical insurance work?

For example, Employees Michael got injured at work. Michael goes to hospital 5 times, and the bill from hospital are $300 for each. So Oncall pay the first 2 bills in full, which is $600. Then only pay ($692-$600=)$92 for the third bill. The insurance company Allianze will pay ($300-$$92=)$208 for the third bill And $600 for the last two bills.

2. how does Oncall pay worksafe insurance premium to Allianz?

Oncall ask for Qoute from Allianz in the end of June 2017. It may take 2 months for Allianz to calculate the premium for 2017/18. Therefore, in Sep 2017, Oncall receive Qoute for worksafe insurance premium, and decides to pay it monthly By 10 installments.

Why is it 10 installment?

the total premium for 2017/18 is $122,000. the first payment would be in Oct.2017.

Sep, Oct, Nov, Dec 2017, Jan 2018. February, March, April, May, June 2018. There 10 months in total. Each installmeant is $120000/10=$12000. For each month since Oct 2017 until June 2018.

for each month we allocate $120000/12months= $10,000 because the allocation goes against 12 months, from July 2017 to $June 2018.

1) expense Since the the first installment payment is paid on 5th of October. We do the accrual journal for allocating insurance to insurance expense account. For July, Aug. and Sep 2017, we do journal entry as follows on the date 30/09/2017 for 3 months installment allocations:

Dr. Insurance expense xxx $30,000 Cr. insurance payable xxx $ 30,000

so we may claim GST in September.

on 30/09/2017: Dr. Insurance expense xxx $10,000 Cr. insurance payable xxx $10,000 onward until 30/07/2018.

2) generate insurance bill for the full year in full amount.

Greate bill with MYOB: 30/09/2017

Dr. Insurance account payable $120,000. -insurance clearing account ---full amount Cr. Creditor $120,000 account payable account

Make payment: 05/10/2017 --- one of the payment installment

Dr. Creditor $12,000 Cr. bank $12,000

the unpaid balance of Creditor is 120000-12000= 108,000

@http://www.google.com.hk/url?sa=t&source=web&cd=6&ved=0ahUKEwiw7Z7f_fHWAhUEFZQKHYpeC5UQFgg0MAU&url=https%3A%2F%2Fwww.workcover.wa.gov.au%2Fcontent%2Fuploads%2F2014%2F09%2FWorkers_Compensation_A_guide_for_employers_for_translation_CHS_amended_version.pdf&usg=AOvVaw28rbb3NAka6WdFzdbe0tv-