employee termination unused annual leave loading

Question

Hi,

I use MYOB AccountRight. I have just had an part time employee leave to take on another job. She has 15.30 hours of unused annual leave. I am aware it is a requirement to add the annual leave loading of 17.5% onto the payment of the unused annual leave, however there is no "unused annual leave loading" category. Am I supposed to create one, or just adjust the amount (by adding the extra 17.5% calculated on the amount of unused annual leave pre-calculated by MYOB software)?

What is the best way to move forward without confusing the ATO or making a mistake?

Thank you very much for your feedback,

Kind Regards,

Jackie Bell

Tracey_H · Accepted Answer

Hi @JackieBell

You can create an Unused Leave Loading payroll category to make sure it is reported correctly through STP.  These support notes may be helpful -

Create payroll categories for termination payments

Assign ATO reporting categories

You might also find this link useful in calculating PAYG on termination pays - ATO - tax table for unused leave payments

Please let me know if you need further help.