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Nancy15's avatar
Nancy15
Contributing User
8 months 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
    8 months 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

7 Replies

  • q_man_snowflake's avatar
    q_man_snowflake
    Experienced User
    12 days ago

    Hi Nacy15

    I don't use AI, so what was it that you popped into the search? Maybe I'll just do a cross check to the information I currently have. Ideally I need someone more experienced within WA legislation for LSL

  • Nancy15's avatar
    Nancy15
    Contributing User
    12 days ago

    Hi,

    I would love to help, but I wouldn't be the best person to ask, firstly as we are not in WA and legislation could be different in your state.

    I was able to work it out and funnily enough I also entered the info in AI detailing the state we are in etc, dates and our figure was pretty much spot on to what AI said. Maybe you could compare with AI also?

     

  • q_man_snowflake's avatar
    q_man_snowflake
    Experienced User
    12 days ago

    We are in WA and fall under Wage Line WA legislation. We have an employee leaving next week and I'm in the same situation where I need to calculate her long service leave. Issue I have is that she has taken a considerable amount of unpaid leave. I have run Payroll Register [Detail] report, and have calculated dates between dates (online) to get the amount of days, less weekends. Running these figures through the Wage Line LSL calculator says she does not quality for long service due to the amount of unpaid days (just under 4 years) this does not sound correct and need further help. Can you please private message me today?

  • Nancy15's avatar
    Nancy15
    Contributing User
    8 months ago

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

  • ChrisMc's avatar
    ChrisMc
    MYOB Staff
    8 months 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
    8 months 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
    8 months 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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