Annual Leave Loading Accrual

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Annual Leave Loading Accrual

Hello - Is it possible to set up annual leave loading accrual in MYOB Accountright so that it forms part of the Entitlements Report?

 

Presently I manually add the 17.5% to the accrued annual leave and adjust through the Annual Leave Liability and Expense account so that the leave liability on our Balance Sheet includes loading.

 

Just wondering if there is a more automated way of doing this?

 

Many Thanks 

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Re: Annual Leave Loading Accrual

Hello @ADFA 

 

There are two Entitlement Reports you can run, the Balance Summary and the Balance Detail. Note that the data in both these reports is based on payroll history information you enter in the employee cards and the payroll transactions. Just to check, if you navigate to the Employee Card >> Payroll Details >> Entitlements, do you see Annual Leave Loading listed there, or is it just Holiday Pay and Annual Leave and/or others you may have? The only way it would show on the Entitlements Reports would be if it was listed as an Entitlement in the employee card. I would imagine you do not see Annual Leave Loading listed there, and this would likely be because Annual Leave Loading is advised to be set up as a Wage and Expense only (or additional Liability as you have it), not as an Entitlement. 

 

To my knowledge, Annual Leave Loading is not an entitlement in the sense that unlike Holiday Pay and Annual Leave, not all employees are automatically entitiled to it by law. Rather, it is something added per the employer's discretion and therefore, manually added on Annual Leave as per that calculation. For the purpose of what you are trying to acheive though, I believe you would be able to add an Enitlement Category for Annual Leave Loading and set it up specifically so that it accrues alongside Annual Leave and nothing else, and it should show up on Entitlement Reports then.

 

With all that said though, I would definitely advise checking with an accounting advisor if this is something you would like to set up. If you do play around with adding an Entitlement Category for Annual Leave Loading, you may consider doing that on an old backup or in the sample company file Clearwater to test things out first and see how different settings play out.

Kind regards,
Emily Bisbach

MYOB Community Support

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Re: Annual Leave Loading Accrual

Great - thank you Emily, that's very helpful.

 

Yes currently the leave loading is treated as a wage expense rather than an entitlement.

 

We will assess whether we should go ahead and set up Leave Loading as an entitlement or continue with our current process for recording this liability.

 

Thanks again for your help.

 

 

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