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Anewbee's avatar
Anewbee
Experienced Cover User
1 month ago
Solved

Final Pay - Long service leave

Good Afternoon   I have an employee that has been with our business 10yrs (fulltime & parttime) but due to taking unpaid leave during this time she is about 10 weeks off being due LSL. She has resi...
  • Earl_HD's avatar
    Earl_HD
    12 days ago

    Hi Anewbee, 

    Thanks for checking this through, and that makes sense.
     

    If you’re using the Final Pay workflow for a voluntary termination, you wouldn’t enter the unused long service leave through a nil pay under the LSL entitlement category. In MYOB, unused long service leave is entered manually in the Final Pay workflow under Unused long service leave instead.

    For the Weeks field, enter the number of weeks of unused LSL being paid out. For the Weekly rate field, enter the employee’s weekly gross rate for that leave payment. So if Wageline has confirmed the entitlement should be based on an average 30 hours per week at $35 per hour, then $1,050 would sound consistent as the weekly rate to use.  If MYOB asks for Normal gross pay under Tax on unused leave, that means the gross amount the employee would usually earn in one full normal pay period. If they’re paid the same each pay, you can use the gross pay from their last full pay slip. If their pay varies, MYOB recommends using the Pay run history report and dividing the total gross pay by the number of pay periods across the latest year.
     

    One thing to keep in mind is that MYOB’s Final Pay workflow uses weeks for unused long service leave. In a previous support case, this was confirmed as a product limitation where very small balances that can’t be entered properly in weeks needed to be handled outside the Final Pay workflow in a separate unscheduled pay run. For reference, this help page walks through the Final Pay steps: Processing a final pay

    Regards, 
    Earl

Anewbee's avatar
Anewbee
Experienced Cover User
15 days ago

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​ 

  • Earl_HD's avatar
    Earl_HD
    MYOB Moderator
    12 days ago

    Hi Anewbee, 

    Thanks for checking this through, and that makes sense.
     

    If you’re using the Final Pay workflow for a voluntary termination, you wouldn’t enter the unused long service leave through a nil pay under the LSL entitlement category. In MYOB, unused long service leave is entered manually in the Final Pay workflow under Unused long service leave instead.

    For the Weeks field, enter the number of weeks of unused LSL being paid out. For the Weekly rate field, enter the employee’s weekly gross rate for that leave payment. So if Wageline has confirmed the entitlement should be based on an average 30 hours per week at $35 per hour, then $1,050 would sound consistent as the weekly rate to use.  If MYOB asks for Normal gross pay under Tax on unused leave, that means the gross amount the employee would usually earn in one full normal pay period. If they’re paid the same each pay, you can use the gross pay from their last full pay slip. If their pay varies, MYOB recommends using the Pay run history report and dividing the total gross pay by the number of pay periods across the latest year.
     

    One thing to keep in mind is that MYOB’s Final Pay workflow uses weeks for unused long service leave. In a previous support case, this was confirmed as a product limitation where very small balances that can’t be entered properly in weeks needed to be handled outside the Final Pay workflow in a separate unscheduled pay run. For reference, this help page walks through the Final Pay steps: Processing a final pay

    Regards, 
    Earl

    • Anewbee's avatar
      Anewbee
      Experienced Cover User
      5 days ago

      Thank you Earl_HD​ that information was very helpful:)

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