Forum Discussion

Tasqua's avatar
Tasqua
Experienced Cover User
2 years ago

stp2 cash out annual leave of 2wks for ongoing employee

We are paying 2 of our monthly salary employees 2 wks of their annual leave as 'Cash Out" prior to xmas period.  These employees are ongoing employees. With STP2 under payroll categories do I only n...
Tracey_H's avatar
Tracey_H
Former Staff
2 years ago

Hi Tasqua 

 

Thanks for your post. You would need to create a new payroll category in the Wages tab called something like Cashed out Annual leave. For STP Phase 2, the ATO reporting category would typically be Cash out of Leave in Service. However, if you're not sure about the ATO reporting category you will need to check with your accountant or the ATO.

 

The Help Article, Cashing out annual leave, has detailed information on setting up and processing these payments.

 

Please let me know if you need further help.

 

If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

  • Tasqua's avatar
    Tasqua
    Experienced Cover User
    2 years ago

    Hi Tracey

    Thanks for your reply.  I did eventually speak with someone in MYOB and they also got me to link the CASHED OUT under ENTITLEMENTS tab for annual leave accrual.

    Can you please confirm this is ok as your email did not say this further step?

    Thanks for this.

    Regards

    Gill

    • TraceyR1's avatar
      TraceyR1
      2 years ago

      How did you link the CASHED OUT under ENTITLEMENTS tab for annual leave accrual. - I am getting an error 

      EntitlementPayrollCategory_ExemptionsNotHourlyWages

      • Tracey_H's avatar
        Tracey_H
        Former Staff
        2 years ago

        Hi TraceyR1 

         

        This error can occur if one or more wage categories that you're trying to exclude from the entitlement aren’t set as hourly categories.

         

        After ensuring that the entitlements' linked wage category is set to an hourly basis, not a salary basis, we need to refresh the entitlement in the background as explained below: 

        1. Go to Payroll>>Payroll Categories>>Entitlements
        2. Choose the desired leave category that needs updating
        3. Take note of the current calculation basis including the percentage or set value
        4. Update the calculation basis to the other option i.e. if currently on Equals x% of x, change to be Equals x hours per. You may encounter a message indicating relating to that change select Ok to that message
        5. Select OK
        6. Go back into theEntitlement Information window, update the calculation basis back
        7. Ensure that the percentage or value is set correctly for the calculation basis
        8. Update the Exempt category list if required
        9. Select OK.

        Please let me know if you need further help.

    • Tracey_H's avatar
      Tracey_H
      Former Staff
      2 years ago

      Hi Tasqua 

       

      Yes, it is correct to link the Cashed out Annual leave payroll category to the annual leave entitlement category. This ensures the leave balance is reduced by the cashed out hours.

       

      The instructions for this are included in the Help Article I provided previously: Cashing out annual leave

       

      Please let me know if you need further help.

       

      If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.