Final Pay MYOB Essentials - Annual Leave payout and single touch payroll (STP)

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Contributing Cover User amac196
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Final Pay MYOB Essentials - Annual Leave payout and single touch payroll (STP)

I refer to the link: http://help.myob.com/wiki/display/ea/Processing+a+final+pay#expand-FinalpayAustralia which appears to put the annual leave payout in the annual leave row. This page is post 1 July 2018 when single touch payroll came in. Shouldn't the annual leave payout be a separate payroll item with the ATO reporting category Lump Sum A - Termination/Redundancy rather than just being reported in the Annual Leave row?

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Experienced Cover User DavidSA
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Re: Final Pay MYOB Essentials - Annual Leave payout and single touch payroll (STP)

I suggust you refer to Schedule 7 on the ATO site.

 

https://www.ato.gov.au/Rates/Schedule-7---Tax-table-for-unused-leave-payments-on-termination-of-empl...

 

It depends on the reason however I assuming this was voluntary resignation.

 

Normal termination (eg voluntary resignation, employment terminated due to inefficiency, retirement)

Post-17 August 1993

Marginal rates

Include in salary/wages

Contributing Cover User amac196
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Re: Final Pay MYOB Essentials - Annual Leave payout and single touch payroll (STP)

It was a genuine redundancy so I need it to be Lump Sum A. It's easy enough to create a new pay item which I think would be:

Standard Earning

"Unused Annual Leave" as a name

Taxable

"Lump Sum A - Redundancy" as the ATO reporting category

 

However, when doing the payrun, if I don't enter an amount at the annual leave line this doesn't get cleared so the payslip still says there are x hours remaining. 

 

Would the best thing to do be to turn off annual leave and put the opening balance to nil in the Employee Leave section and then in the pay run put the amount of leave payable at the new Unused Leave/Lump Sum A Redundancy item?

 

This actually seems simple now that I've worked it out but there were no community topics about this or MYOB help articles. 

MYOB Moderator Steven_M
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Re: Final Pay MYOB Essentials - Annual Leave payout and single touch payroll (STP)

Hi @amac196

 

I think you have the correct process for recording that pay i.e. create a new pay item with the required ATO Reporting Category, although, it might be worth running it past your advisor.

 

If I can add something to your process, you mentioned "turn off annual leave and put the opening balance to nil' you would actually need to leave Pay annual leave and personal leave enabled to update that opening balance option. If that option is disabled it will not allow for the opening balance to be changed but then again it will not appear on the payslip.

Kind regards,
Steven

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