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Construction Industry Long Service Leave Accruals

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Cover User

Construction Industry Long Service Leave Accruals



Can someone please advise if it's possible to have these accruals recorded at the same time as processing normal salaries and/or payments to subcontractors who qualify for these accruals. I'm mainly interested in recording the ongoing liability for these payments so that manual entries don't have to be completed each week/quarter etc.



Valued Partner GDay53
100 Posts
Valued Partner

Re: Construction Industry Long Service Leave Accruals

Yes it is and it can be done very easierly.

Firstly create a new "Payroll Category" called "Long Service Leave" make it an hourly type eqaul to 1 time regular rate and tick off the automatically adjust base hourly or base salary details tick box.

Then create a new "Entitlement Category" called "Long Service Leave accural". This should be set up with a % per pay period and the % may vary depending upon which state you are in. In Qld it is 1.6667%. the linked "Payroll Category" should be "Long Service Leave". See attached file.

Now just link every employee that is entitled to LSL to these categories. I usually have them set up and link emplyees to them when they reach their 5yr anniversary.

You should also calculate the amount of LSL outstanding, as at the date of you creating the LSL entitlement, and enter this amount in the carryover column in the entitlements for each employee.
Every payrun from then on will show long service and you will also be able to run the Entitlements report to show LSL.

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