employee termination unused annual leave loading
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
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.
