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COVID-19 how do you record annual leave LOADING at half the rate?

Jacinta1
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COVID-19 how do you record annual leave LOADING at half the rate?

An employee has requested to take annual leave at half pay during COVID-19
I have set up a new wage category labeled "Annual Leave at Half Pay" and assigned half of their normal rate.
Do I have to do something similar for the Annual Leave Loading? As I see it can't be;

  • Regular rate multiplied by 0.175 As this category will link to their 'regular rate' and its linked to other employees.

So I have set up another category 'A/L Loading at half pay' and calculated the hourly rate as follows

 

a (normal rate) / 2 = b (new rate at half pay)
0.175% x b = c (additional loading amount)
b + c = new annual leave loading hourly rate

Can someone confirm this is correct?


2 REPLIES 2
LRBooks61
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Re: COVID-19 how do you record annual leave LOADING at half the rate?

Hi jacinta

 

I would be tempted to keep things simple and approach it in this way.

 

eg weekly hours are 35 hours.  Half pay = half hours

 

therefore I would pay 17.5 hours at the usual rate

 

the reason I suggest this is that there is a clear calculation of leave taken against the one payroll catergory.

it also ensures that no errors are made re super as it is not calculated on loading.

 

My understanding of al at half pay would mean you would have to reallocate annual leave accrued to another catergory so that you could reduce hours accrued by hours taken.. then reinstate the hours not taken back to full pay rate

 

Also how are you accruing hours for this period? At the full hourly or at the half?

 

food for thought

 

Lisa

 

 

Tracey_H
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Re: COVID-19 how do you record annual leave LOADING at half the rate?

Hi @Jacinta1 

 

I just wanted to add to @LRBooks61 great advice on this and let you know that according to Fairwork annual leave at half pay means the employee gets 1 week of leave pay for 2 weeks taken, not 2 weeks pay at half the normal rate. You should also check your award to make sure that taking leave at half pay is allowed: Fairwork

 

The other thing I wanted to mention is super on leave loading. According to the ATO leave loading is included in Ordinary Time Earnings (OTE) unless it is clearly linked to lost overtime. As such, super generally does accrue on leave loading: ATO Superannuation on leave loading

 

Please let us know if you need further help.

Cheers,
Tracey
Previously @bungy15

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