Casual Loading is an extra amount paid to casual employees to compensate them for the lack of benefits, such as paid annual or public holiday leave.
You should check with HR and review the award or employment agreement your employees are paid under. This will specify if you need to set up Casual Loading and what it is based on.
Casual Loading is a percentage of hours worked. It can include leave hours (e.g., Long Service Leave) and other Additions. To include other Additions, you need to:
On the Additions to Include
If Casual Loading is to be calculated on Shift Loading, for example, then Shift Loading would have the Include in Loading ticked under Loading in the Addition.
Include in Loading is available if the Category is an Addition Before or After Tax.
On the Casual Loading
In order for Casual Loading to include other additions in the calculation, Process Loading must be ticked.
Process Loading is available if the Type is Percent and the Category is an Addition Before or After Tax.
For example, if Casual Loading was 25% of Normal Hours, plus any Shift Loading.
The Casual Loading would have the Process Loading ticked.
The Shift Loading would have the Include in Loading ticked.
When a transaction contains both additions, the Casual Loading will include a percentage of the Shift Loading in the value.
Set up Casual Loading
Go to Payroll, Maintenance, General, Additions and Deductions.
Click Add.
Enter the Code, Shortcut Key, and Description.
Select Addition Before Tax as the Category and Percent as the Type.
Enter the Percent.
Select the Hours Type to calculate the Casual Loading on. This could include Normal Hours, Leave, and Leave Rates.
If you select Overtime components in Hours Type, you will need to select Overtime Type.
Actual - will use the hours worked, e.g., 1 hour of Time/Half x base rate (1)
Paid - will use paid amount, e.g., 1 hour of Time/Half x base rate x overtime factor (1.5)
Premium - is the difference between actual and paid, e.g., 1 hour of Time/Half x base rate x 0.5
Tick Include in Deduction Calculation to include Casual Loading in the calculation of percentage deductions, e.g., Super deductions.
Tick Process Loading to include other additions in the calculation of Casual Loading.
Select any other required fields.
Click the STP Reporting tab.
Under STP Phase 2, select the Reporting Group.
Tick Ordinary Time Earnings (OTE) if the addition is considered OTE.
Click OK to save.