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VE1's avatar
VE1
Contributing User
2 years ago
Solved

long service leave

HI,

1/ When I create a new payroll wage category for Long Service Leave – is the ATO reportable category Gross payments?

2/ If an employee takes long service leave does that payment accrue hours or should it be exempt?
3/ Also,  if I was trying to journal a dollar amount into #2-1773 Provision For Long Service Leave so that it would show in the general ledger what is the other account that I would use? #6-6371 Wages Bar Staff?

MYOB online shows to set it up under Wages bar staff – not a separate long service leave account number under wages.

CR Liability

DR Wages 

 

 

  • LRBooks61's avatar
    LRBooks61
    2 years ago

    It is just an entitlement that accrues. 
    when you use the entitlements they are paid and recorded as wages. 


    the reason you need to do a journal is to record the dollar value as the entitlements are only recorded in hours. 
     

    look at the payroll categories. The tab for entitlements - you will see that they are just calculated. The wages tab you will see have linked gl accounts. 

    on the payslip for super for instance it has the expense account and the liability account the leave accrual only has the hour's accrued 

    hope that clears it up

     

    lisa

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  • LRBooks61's avatar
    LRBooks61
    Ultimate Cover User
    2 years ago

    Hi

     

    1.Yes it is gross payments

    2. Yes you still accrue all leave when on any type of leave

    3. the expense account I suggest would be named-  leave accrued - no doubt you would be doing the same for annual leave - so

    CR liability ( provision for leave)

    DR expense ( leave accrued)

    Hope that helps

     

    Lisa

    • VE1's avatar
      VE1
      Contributing User
      2 years ago

      Hi Lisa,  

      Are you saying that the DR expense ( leave accrued) is a totally separate account from normal wages?

      On a payslip under entitlements for long service leave accual what should the account number be:- wages or a new account called leave accrued?

      Thanks.

       

      • LRBooks61's avatar
        LRBooks61
        Ultimate Cover User
        2 years ago

        Hi

        Yes I am saying that it should be shown seperately when you are accruing it ( not when you are paying it as it is then a wage category)

         

        You would not be able to reconcile your eofy wages if you accrue entitlements to a wage account.

         

        It is an entitlement - there is no corresponding account associated with it , hence you do the journal to include the provision for it in the Balance sheet - the offset being the accrual in the Profit and loss

         

        If you were to look at the journal of one of your payroll entries you will see that there is no recording in the gl of entitlements - just in the employee card.

         

        Hope that makes sense

         

        Lisa