EOPY - and annual leave loading

[lek]

Hi I have just processed our last pay for the payroll year and was checking the gross payment amount on the finalisation report (that goes to the ATO). It seems that none of the annual leave loading payments have been included in the gross payment amount. Hence the gross payment for each employee does not include their annual leave loading. I have checked the ATO reporting category for annual leave loading on our MYOB, and it has been assigned "gross payment" category, which I think is correct. Does anyone have an answer why this has happened and how to fix it. Thank you

[Tracey_H · Accepted solution]

Hi @lek 

Thanks for your post. Check if the leave loading payroll category has been ticked exempt from PAYG Withholding as this will exclude it from STP. You will find this in Payroll Categories>>Wages tab>>opening leave loading category>>click on the Exempt button. If it has been ticked exempt from PAYG you will need to untick it then process a $0 pay to update STP.

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.

[Bowden]

The Leave loading is missing form the ATO report balance, everyhting else is good.  I have checked it is not PAYG exempt.  What else could it be? 

[Tracey_H]

Hi @Bowden 

I'd check that ii has been assigned the correct ATO reporting category. If not, you will need to change the reporting category and process a $0 pay to update STP.

[Harrolds35]

We have followed the same procedure but now when we enter leave loading it adds PAYG tax???

[Harrolds35]

We have run the $0 payroll so all good there, do we now have to change it back so future leave loading payments don't attract the PAYG amount

[Tracey_H]

Hi @Harrolds35 

Generally speaking, leave loading is not PAYG Withholding exempt and as such should be included in the PAYG calculation. 

This is from the ATO website: Withholding from leave payments for continuing employees

Any leave loading attracted by annual leave in an advance leave payment is to be added to the total leave payment when calculating the withholding.

The PAYG exemption for the first $320 of leave loading was removed in 2012.

If you are unsure I do recommend speaking to the ATO. 

Please let me know if you need further help.