The accrual of pre 16/8/1978 or pre 18/08/1993 Long Service Leave would have occurred before the employee was entered into MicrOpay, e.g. a previous payroll system. The allocation of hours to the Entitlement fields should occur when the employee record is created. The Termination Transaction uses the hours in each Entitlement Period on the employee record to calculate Component A (pre '93) and Component B (pre '78).
Where your employee is entitled to have their Long Service Leave split, but this hasn't occurred, you need to allocate the hours to each entitlement period. You can calculate the hours manually and then record them via a Leave Adjustment. See the ATO's Calculate the correct amount to withhold for details on how to calculate the number of hours to be allocated to each entitlement period.
Note: Refer to the relevant State Long Service Leave Legislation or Award for details on how to calculate the number of hours to accrue.
Enter the leave using leave adjustment
To enter the manually calculated leave hours and dates:
Go to Payroll, Transactions, Adjustments, Leave Entitlement Adjustment.
Select a relevant employee and Long Service Leave.
Entitlement (Pre 18/08/1993) and Entitlement (Pre 16/08/1978) are shown where applicable.
Enter as follows:
Entitlement
Hours - accrued for Post 17/08/1993 up to the last entitlement period.
Date - the end of the last entitlement.
Pro Rata
Hours - accrued since the last anniversary date up to the last leave update.
Date - leave has been accrued to on the last update.
Entitlement (Pre 18/08/1993) – Entitlement hours accrued prior to 18/08/1993 and after 15/08/1978, less hours taken in the period.
Entitlement (Pre 16/08/1978) – Entitlement hours accrued prior to 16/08/1978, less hours taken in the period.
Leave Taken – Leave Taken since last anniversary date.
Click Process.
Note: If any leave taken has already been deducted from these hours, then do not enter any hours in the Adjust To field next to Leave Taken apart from those taken from the last anniversary.
Calculate the hours using MicrOpay
The steps below can be used to calculate the Long Service Leave hours for employees who have had the same Contract Hours for their whole service and haven't had any periods which are excluded, e.g. parental leave. You need to check the State Legislation or Award to see what is included or excluded.
Before starting, you need to know how many hours of Long Service Leave the employee has taken in each Entitlement Period.
Go to Payroll, Maintenance, Employees, Employees.
Edit the employee record and select Pay Details.
Ensure Contract Hours are attached.
Select Leave.
Edit the Long Service Leave record.
Change:
Long Service Leave Class to the first class
Entitlement and Pro Rata Dates to the beginning of the Employee's service. This may be before their Hire Date if they started working at a company that was acquired
All Hours fields to zero
Click OK and then OK to save the employee record.
Accrue the pre '78 Hours
Complete these steps to accrue Long Service Leave hours for employees who started their service before 16 August 1978. If their service started after this date, skip to the next section.
Go to Payroll, Transactions, General, Update Leave Entitlements.
Enter the employee in From Employee and To Employee.
Select the employee's Pay Frequency.
Change the Leave Entitlement Date to 16 August 1978.
Click OK.
When the process is complete, Close the screen.
Go back to Employees.
Edit the employee record and select Leave.
Select and Edit the Long Service Leave record.
Enter the total accrued hours into Entitlement (Pre 16/08/1978). If the employee took leave in this period reduce the hours by the leave taken.
Zero out the Prorata and other Entitlement Hours.
Click OK and then OK to save the employee record.
Accrue the pre '93 Hours
Go to Payroll, Transactions, General, Update Leave Entitlements.
Enter the employee in From Employee and To Employee.
Select the employee's Pay Frequency.
Change the Leave Entitlement Date to 18/8/1993.
Click OK.
When the process is complete, Close the screen.
Go to Employees.
Edit the employee record and select Leave.
Select and Edit the Long Service Leave record.
Enter the total of the Entitlement and Prorata hours into Entitlement (Pre 18/08/1993). If the employee took leave in this period reduce the hours by the leave taken.
Zero out the Prorata and Entitlement Hours.
Click OK and then OK to save the employee record.
Accrue to your last Period End Date
Go to Payroll, Transactions, General, Update Leave Entitlements.
Enter the employee in From Employee and To Employee.
Select the employee's Pay Frequency.
Change the Leave Entitlement Date to the last processed Period End Date for the Employee's Pay Frequency.
Click OK.
When the process is complete, Close the screen.
Go to Employees.
Edit the employee record and select Leave.
Select and Edit the Long Service Leave record.
Enter any leave taken since 18 August 1993 in Leave Taken Hours.
Click OK and then OK to save the employee record.