Leave Loading can be automatically calculated when your employee takes Annual Leave. You can define multiple Leave Loading codes to comply with STP2 reporting, where leave loading can be reported as paid leave or overtime, depending on the reason it is paid. When multiple Leave Loading classes are defined, you can specify a different Leave Loading Addition per class by selecting it in the Loading Addition field.
Set up Leave Loading
There are four steps when creating Leave Loading:
Create an addition to pay the leave loading.
Create the leave loading class to define the calculation.
Attach the leave loading class to the employee's Annual Leave.
Attach the leave loading to superannuation, if required.
Create the Addition before tax for the Leave Loading
If you don't currently have an Addition code for Leave Loading, create one. To include a leave loading addition code in your transaction import, review your T&A system and make the required changes. To create the Addition:
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 Type as Amount.
Review the RDO tab if required.
Select the STP Reporting tab.
Under STP Phase 2, select the Reporting Group and if applicable the Reporting Subgroup. For more information on STP2 Reporting Groups, see the ATO's Employer Quick Reference guide.
Click OK to save.
Create Leave Loading
Go to Payroll, Maintenance, Leave, Leave Loading.
Click Add.
Complete the below fields:
Code: a unique alphanumeric code of up to 10 characters.
Description: provide a description to be used in reports and pay advices.
Loading Percent: the percentage used to calculate Leave Loading.
Rate Type: the rate type used to calculate the Leave Loading value.
Maximum Loading: caps the amount of leave loading an employee can receive per year. The leave loading value resets each financial year. Leave this field blank if there is no maximum.
Loading Addition: select the addition code to pay the Leave Loading.
Click OK to save.
Attach Leave Loading to the employee's annual leave
Go to Payroll, Maintenance, Employees, Employees.
Edit the employee record
Select Leave.
Edit the Annual Leave class.
Select the Leave Loading Class.
Click OK, then OK again to save and close the employee record.
Leave Loading and Superannuation
If you need to include the Leave Loading Addition in the super calculation:
Go to Payroll, Maintenance, Superannuation, Employer Contribution.
Edit the Employer Contribution.
Select Calculation Parameters, then select Addition & Deduction Codes.
Click Select at the bottom and select the Leave Loading Addition Code from the list.
Click OK and then click OK to save the Employer Contribution.
Leave Loading and Transactions
How the leave loading appears in transactions depends on the transaction type.
Timesheets and Manual Calculation
When annual leave is included in the transaction, Loading %, Loading Rate and Loading Amount will appear in the annual leave line.
Loading % is the loading percent you entered on the Leave Loading class.
Loading Rate is the hourly pay rate (e.g. Normal Rate) that the Leave Loading is based on as nominated in the Leave Loading class.
Loading Amount is the amount of Leave Loading being paid and equals Annual Leave Hours x Loading Rate x Loading %.
The Loading Amount won't be included in the total value of Annual Leave in the Pay Summary. The Leave Loading addition is included in the transaction with the calculated value as an Addition Before Tax.
Leave Loading and Terminations
When you set up your leave loading, you need to consider how it impacts unused annual leave paid out on Termination under the applicable Award or EBA.
To change the leave loading calculation on Termination:
Go to Payroll, Maintenance, Leave, Annual Leave.
Edit the Annual Leave Class.
Update Include Leave Loading in Termination. The options are:
No - leave loading values are not included in the termination.
Entitled leave only - the value of leave loading is based on the entitlement hours, pro-rata is ignored.
Pro-rata leave only - the value of leave loading is based on the employee's pro-rata hours only.
Entitlement and pro-rata leave - the value of leave loading is based on the entire leave balance.
Click OK to save.