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I have a client with an employee wanting to cash in a week's annual leave. How is this acheived please?
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Within MYOB Essentials when an employee is wishing to cash up their annual leave you would just need to select the Add Holidays or leave option on the employee's pay, selecting Annual leave and before selecting Save. This will add the Annual Leave to the pay so you can add in the necessary hours against that pay item.
Our MYOB Essentials Help Article: Managing your employees’ leave does have a section on completing that process.
it is a requirement to show this leave as cashed up annual leave so how would this be recorded. this is in effect a double payment in one week as there will be wages on top of this. Also cashed up annual leave is only allowed once in the employees anniversary year.
My understanding of the Holiday Act is that you just need to pay that amount in accordance with the standard annual leave rate calculation and in a timely manner once agreed upon. The above process should cover that process.
If you are needing to show those values as a different pay item you would be looking at creating an earning pay item, link that to the employee and then use that to process the cash out amount. Note: You would also need to negative to the employee's record and reduce the number of hours listed in the Opening Balance on their leave to reduce the current leave entitlement of that employee. You may also want to add a note to the card for record keeping purposes.
February - last edited February
There is an option when you choose leave to tick "This leave is being paid in advance" - we were advised this is what you tick when you are cashing out leave - that way it shows separately and taxes it at secondary tax. I don't like the wording and prefer this to be changed to "cash out annual leave" Cash out annual leave is a taxable allowance and not part of gross earnings.
Thanks Jenniek, that was the option I was looking for. poorly worded but yes cash allowance and not part of gross earnings