Forum Discussion

rosem's avatar
rosem
Experienced Cover User
3 years ago
Solved

Unused Annual Leave on employee resignation

Hello MYOB Community, Our organisation is seeking advice on Unused Annual Leave when an employee resigns. The payroll category for this is set-up as a Wages Item in MYOB AR. Originally, this payro...
  • Tracey_H's avatar
    Tracey_H
    3 years ago

    Hi rosem 

     

    As we're not accountants or tax advisors we're not permitted to advise on what amounts need to be included in super guarantee calculations. If you're not sure you do need do check with the ATO.

     

    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.

rosem's avatar
rosem
Experienced Cover User

Thank you, Tracey,

I have been going round and round searching online to find answers, and this subject has so many contradictions.

The ATO declare that the Superannuation Guarantee does not apply to Termination payments of Unused Annual Leave, however Annual Leave Loading does:-

https://www.ato.gov.au/Business/Super-for-employers/Paying-super-contributions/How-much-super-to-pay/List-of-payments-that-are-ordinary-time-earnings/

This is a contradiction to Annual Leave as Ordinary Time Earnings, which is categorised as gross wages and does attract the Superannuation Guarantee.

If you are able to clarify this that would be great 😊

My thoughts are that Unused Annual Leave should attract the Superannuation Guarantee, unless it is a lum sum payment when an employee is terminated due to an ETP genuine redundancy, in lieu of notice, a gratuity or 'golden handshake'etc.

Thanks again,

 

rose

Tracey_H's avatar
Tracey_H
Former Staff
3 years ago

Hi rosem 

 

As we're not accountants or tax advisors we're not permitted to advise on what amounts need to be included in super guarantee calculations. If you're not sure you do need do check with the ATO.

 

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.

  • rosem's avatar
    rosem
    Experienced Cover User
    3 years ago

    Thanks Tracey,

    Yes, I am checking with our accountants and the ATO.

    Your solution is great, and I forgot to check the exceptions ! DUH