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 calcuation.
Attach the leave loading class to the employee.
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 to link to the Leave Loading, you will need to 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 refer to 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 definition that will be used in reports and pay advices for the leave loading.
Loading Percent: the percentage used to calculate Leave Loading.
Rate Type: the rate type to be used from the employee's record 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 for this Leave Loading code.
Click OK to save.
Attach Leave Loading to the employee
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 the Calculation Parameters tab, then select the Addition & Deduction Codes tab.
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, the Leave Loading percentage, rate and amount will appear on the annual leave line. In addition, the Leave Loading addition will appear in Additions Before Tax with the amount.
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.