When an employee goes on a disability leave, short or long term, their pay ceases until they return to work. There is no entry to be made in the company financial records. However, some companies are willing to top up the payment from the insurance company. To do this you have to know how much is being received from the Insurance Company and then a decision is made as to how much will be paid in addition. The additional amount is the only amount that has to be dealt with through the Company payroll. Deductions etc. will all be determined based on the amount being paid for any given pay period.

Thank you so much!!