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MariuchaN3043's avatar
MariuchaN3043
Member
1 year ago
Solved

Annual Leave payment

hello community,

 

It has been brough up to my attention that Annual Leave Pay can be done as Monthly instead of weekly for tax purposes(paying less tax)

 If i change employee from weekly to Monthly to pay their holidays, would this affect any future payments?

annual leave
  • Isaiah_C's avatar
    Isaiah_C
    1 year ago

    Hi MariuchaN3043,

     

    Thanks for reaching out with your query regarding annual leave pay. Changing an employee's pay frequency from weekly to monthly for annual leave payments will not affect any future payments, as tax is calculated based on the employee's total wage, regardless of the frequency.

     

     

    Regards,

    Sai

2 Replies

  • Isaiah_C's avatar
    Isaiah_C
    MYOB Moderator
    1 year ago

    Hi MariuchaN3043,

     

    Thanks for reaching out with your query regarding annual leave pay. Changing an employee's pay frequency from weekly to monthly for annual leave payments will not affect any future payments, as tax is calculated based on the employee's total wage, regardless of the frequency.

     

     

    Regards,

    Sai

  • alexbarker's avatar
    alexbarker
    Member
    1 year ago

    Hi @ MariuchaN3043,

    Switching annual leave pay from weekly to monthly can impact tax calculations due to different withholding rates, but it shouldn’t affect the overall entitlement or future payments as long as the correct amounts are paid. However, it might alter cash flow for employees who are used to weekly payments, so clear communication is essential.

    If you're unsure, consulting a tax advisor or using tools like annualleavecalculator.com can help ensure accuracy in your calculations and compliance.

    Hope this helps!

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