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kimjc's avatar
kimjc
Contributing Cover User
2 months ago

Salary sacrificing annual leave in lieu of payment

Three of our employees have asked to salary sacrifice future annual leave entitlements. I am aware that leave that has already accrued cannot be salary sacrificed, only leave from the date the employee submits their letter.

I have a few questions regarding the posting of this in MYOB.

How is it accounted for in MYOB payroll - is it allocated as a cashed out amount or as leave taken.

If it is allocated as leave taken would you then salary sacrifice the same amount (with leave loading) so you would effectively end up with their normal pay figures and no further or reduced tax.

This would also cancel out the entitlement taken from their leave entitlement balances.

 

 

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  • Princess_R's avatar
    Princess_R
    MYOB Moderator
    15 days ago

    Hi kimjc,

     

    Thanks for reaching out about managing salary-sacrificed annual leave in MYOB. When an employee opts to salary sacrifice future annual leave entitlements, it can be recorded as a cashed-out amount and entered as the amount for salary sacrifice. For more detail, check out this Help article: Cashing out annual leave. To set this up correctly in MYOB and ensure compliance with regulations, I recommend consulting with your accountant. 

     

    Feel free to get in touch if you need further assistance.

     

    Cheers,

    Princess