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Dean67's avatar
Dean67
Contributing User
3 years ago

Unused Long Service Leave on termination

Under STP2 the ATO Reporting Category for Long Service Leave is "Other Paid Leave" - this is fine for when someone actually takes LSL. However when someone is needing to be paid out the unused LSL the ATO Reporting Category must be "Unused Leave on Termination"...so I have created another wage item called Resignation LSL and assigned the correct ATO Categroy to that. The problem is, it doesn't link to the accrued LSL, so when I paid someone out their LSL the accrued hours did not change! Other than adjusting these hours manually, how can we link these hours to the payout wage item? 

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  • Tracey_H's avatar
    Tracey_H
    Former Staff
    3 years ago

    Hi Dean67 

     

    Thanks for your post. The Help Article, Create payroll categories for termination payments, has detailed instructions on creating unused leave payroll categories. For a leave balance to be reduced by hours taken you need to link the unused leave wage category to the entitlement payroll category. To do this:

     

    1. go to Payroll categories>>Entitlements tab
    2. open the LSL accrual category
    3. in the Linked Wages Category field tick the Unused leave wage category

    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.

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