Leave rules are divided into leave accrual values and leave payments. Employee balances for leave accrual may be viewed from the Leave tab in the employee setup. Payments for leave are defined in leave (Setup) and paid automatically as each payroll is processed.
Accrual of Leave
- Enter a value (in hours) that reflects the standard full time working week. This value establishes the basis for pro rata calculations rather than indicating how many hours are actually worked.
- Annual Leave, Personal Leave, time-in-lieu, RDO leave and long service leave may be configured in order to control the method of accrual and payment.
- Add deferred hours to accrual: If a timesheet is deferred (using special rates) to a future pay period, then the accrual of the Annual Leave, Personal Leave, time-in-lieu, RDO leave and long service leave includes the deferred hours in the calculation of the leave during the pay period it is deferred to.
Payment of leave
- When the Administrator books leave, the default method configured in the Rule Set will be applied.
- User selects: The number of hours paid for each leave day will be determined at payroll by the Administrator. Use this booking method to approve leave immediately and defer the calculation of leave hours until a later time. The shift Start, End, Break and Total Hours are left blank, forcing the Administrator to enter them at the generation of the Payroll.
- Ordinary week: The number of hours paid for each leave day will be determined based on the Working Weeks defined on the employee personal record (Employee Setup, Working Hours tab). Use this leave method when an employee has not worked for a sufficient period of time to establish correct averaging data.
- Pay Leave Loading is checked to pay leave loading when the leave is paid at payroll generation.
- The loading value reflects the percentage value of the leave loading to be applied.
- Loading Calculated On allows selection of the method of calculating leave loading. This is calculated for the pay period and can be based on:
- Ordinary work hours: Pays leave loading on normal hours
- Ordinary work hours + penalties: Pays leave loading on normal hours and penalty hours
- Ordinary work hours + penalties (Weekends only): Pays Leave loading on normal hours and the penalty hours of the weekends
- Pay higher of LL (Leave Loading) on Ord. (Ordinary) hours or LL of penalties: Pays which amount is higher. The leave loading on normal hours or the amount of the penalties.
- Pay higher of LL (Leave Loading) on Ord. (Ordinary) hours or Payment of penalties: Pays which amount is higher. The leave loading on normal hours or the amount of the weekend penalties.
- Probationary Payments Withheld when checked will only pay employees that have been employed longer than their probationary period. This is set up under the Categories/ dates tab
- Pay on Termination to instruct the ClockOn termination wizard to pay annual leave by default.
- Tax Free Limit: Enable this to give the employee a tax free portion of leave loading up to $320. (
NOTE: There is no longer a separate withholding scale(from 01/07/2012) for payees who are entitled to leave loading and they will no longer have higher withholding from every pay. These payees will now be taxed more accurately when leave loading is paid. Previously $320 of leave loading (per year) was to be tax-free when paid. (ATO Leave loading changes)