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Nancy15's avatar
Nancy15
Contributing User
27 days ago
Solved

Hourly LSL setup

Hi we have an employee who we have had to terminate (NSW) she has been at the company for just under 7 yrs. We have to pay out her long service leave and it was never setup how/or what do I enter in the entitlement information box for it to accrue?

also this person went from 35 hrs per week to 21 hrs per week and the last 6 months down to 7 hrs per week. 
does the LSL adjust itself in these senarios? Also is there a way for MYOb to give me the total accrued amount or will we have to enter an opening balance and work it out manually?

thank you for any assistance given.

  • ChrisMc's avatar
    ChrisMc
    27 days ago

    Hi Nancy
    An annual leave entitlement is % accrual is 7.6923% is based in 20 days a year annual leave
    20 x 7.6 (1 day hours) - 152 x (38 x 52) 1976 = 7.6923%

    therefore, for NSW 8.67 weeks up to 10 years 
    ... 8.6667 x 38 = 329.3346 (hours
    ....10 years = 10 x 38 x 52 = 19760

    329.3346 / 19760 = 0.01667 %

    this is an estimate of accrual.
    if you pay out long service leave recommend using the LSL calculator for NSW which will outline the LSL in weeks. 

    Hope this is helpful

4 Replies

  • Nancy15's avatar
    Nancy15
    Contributing User
    26 days ago

    Thank you Chris, I will look at this in detail when I have an opportunity later today.

  • ChrisMc's avatar
    ChrisMc
    MYOB Staff
    27 days ago

    Hi Nancy
    An annual leave entitlement is % accrual is 7.6923% is based in 20 days a year annual leave
    20 x 7.6 (1 day hours) - 152 x (38 x 52) 1976 = 7.6923%

    therefore, for NSW 8.67 weeks up to 10 years 
    ... 8.6667 x 38 = 329.3346 (hours
    ....10 years = 10 x 38 x 52 = 19760

    329.3346 / 19760 = 0.01667 %

    this is an estimate of accrual.
    if you pay out long service leave recommend using the LSL calculator for NSW which will outline the LSL in weeks. 

    Hope this is helpful

  • Nancy15's avatar
    Nancy15
    Contributing User
    27 days ago

    Hi Chris,

    thank you, yes we have used the Long Service Leave Calculator tool but as she has varied her hours so much over the years I obviously didn't want to overpay or underpay this employee. But moving forward I also need to set up the accrual for other staff members and I am unsure as to what is the % or $$ entries I have to do in the setup for long service to accrue.

  • ChrisMc's avatar
    ChrisMc
    MYOB Staff
    27 days ago

    HI Nancy
    We recommend seeking advice from an advisor, as Long Service Leave (LSL) legislation varies by state particularly when it comes to changes in pay rates. If you're in New South Wales, the government provides a helpful Long Service Leave Calculator to estimate the number of weeks payable.
    Long Service Leave Calculator tool | NSW Government
    In MYOB, you can also use the termination process to guide you through paying out unused LSL.

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