Final Pay - Long service leave

Hi Anewbee,

From what you've described, if the employee is entitled to a pro rata long service leave payout under your state or territory rules, this can be paid in their final pay. In MYOB, you’d process this by entering the pro rata long service leave hours against the Long Service Leave wage pay item on the employee’s final pay. Because long service leave rules can vary by state or territory, and unpaid leave can affect how service is counted, we’d recommend confirming the entitlement and calculation against the relevant legislation or Fair Work before processing it. For more info, you can check this MYOB help page: Long service leave

Regards,

Sai

Hi Anewbee,

Thanks for the extra detail. Since you're in Western Australia and Wageline has advised working out the full-time and part-time periods separately, we’d recommend checking with Fair Work or Wageline directly for the correct long service leave calculation and reporting requirements, as they’re the best source for state-based guidance. For the leave balance adjustment in MYOB, you can process the employee’s last regular pay first, then do a nil pay to adjust the long service leave hours if needed.

Regards,

Sai

Thank you Earl_HD​ that information was very helpful:)

Hi Isaiah_C​ 

Thank you for that information. Sorry I didn’t mention we are in Western Australia. Wageline recommended working out two calculations for the fulltime(about 6yrs) & parttime(about 4years) period.

Because long service leave has not been accruing under a wage entitlement for our employee, I will need to enter the accrued hours under a LSL entitlement salary and a LSL entitlement hourly? Do I do this in the final pay? Or after we pay their last regular pay do I do a nil pay to adjust the hours? I appreciate your help, please let me know if you need more details.

Thank you Anewbee

Hi Isaiah_C​ 

Thanks for that info. I called Wageline again and got a different answer that makes more sense. They said I must work out how many hours our employee has worked on an average per week for the whole period of 10 years not including the unpaid leave. Then times the average weekly hours by the pro rata weeks eg: 30 x 8.53 = 255.9hrs. Then once I’ve done that, should I enter the hours under the LSL -hourly entitlement category in a nil pay as mentioned previously?

With the final pay instructions, I have a few questions: it says to enter the number of weeks you’re paying and to enter the weekly rate. Under weekly rate do I enter the gross amount for a week that we will pay the employee for their pro rata weeks? For example: 30(average hours p/w over 10yrs) x $35 (hourly pay rate) = $1050 Gross.

Also it says in some cases you won’t need to enter a normal gross pay, for example due to the tax table that’s assigned the employee, what does that mean? Sorry for all the questions, but thank you in advance I appreciate your assistance.

kind regards Anewbee​