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firstresponse's avatar
firstresponse
Trusted Cover User
1 day ago

Employee changing from Perm Part-Time to Casual

Good Morning,

 

I need to process unused annual leave for an employee going from PPT back to casual. Cessation of Contract. It says I can't process it as a final pay and pick cessation of contract and have to process it as a normal unscheduled pay. If I do it this way is it classified as OTE and how is the tax calculated. I have put his hours in and looks like he is paying over $3,000 of tax.

 

any help much appreciated.

1 Reply

  • Hi firstresponse,

     

    Thanks for reaching out. When an employee changes from part-time/permanent to casual, any unused annual leave should be paid out. You can find more info here. However, for confirming whether this should be treated as final pay or OTE, it’s best to check with your accountant or the ATO so you can record the unused annual leave correctly.

     

    Cheers,

    Princess