unused annual leave payout
i have two employees leaving voluntarilary and need to pay them their unused annual leave and loading. could someone tell me what ato allocation account this is assigned to? lump sum A or unused leav...
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Yes I saw that on the ato site but it doesnt give me that option in the drop down box?
I have "other paid leave", or "unused holiday pay" that is linked to unused leave on termination.
Hi Loco18
Thank you so much for your post. When an employee leaves your business, you'll need to process their final pay. This will include their regular pay (up to their last day of work) and their unused annual leave.
Depending on the employee's workplace agreement and their reason for leaving, there may also be other payments you’ll need to finalise, like:
- unused long service leave
- redundancy
- an employment termination payment (ETP), like in lieu of notice. If you need to include an ETP in a final pay, you'll need to complete some additional steps to those provided below. For all the details see Processing an employment termination payment (ETP). To find out if a payment is defined as an ETP, check the ATO website.
You'll also need to report the employee's termination to the ATO through your STP reporting.
Regards,
Earl