Cashing out annual leave

https://help.myob.com/wiki/x/MYJlAQ

Close

How satisfied are you with our online help?*

Just these help pages, not phone support or the product itself

0

1

2

3

4

5

Very dissatisfied

Very satisfied

Why did you give this rating?

It's hard to find information

Instructions are hard to follow

Content isn't detailed enough

It doesn't fix my software problems

Anything else you want to tell us about the help?

AccountRight Plus and Premier, Australia only

Cashing out annual leave is where an employee is paid the value of annual leave instead of taking the time off work.

Check the rules!

There are rules and regulations that govern the cashing out of annual leave, so first check with the appropriate regulatory body about the rules that affect you. A good place to start is the Fair Work Ombudsman.

The easiest way to handle this in AccountRight is to process a separate pay run just for the cashed out annual leave. This will reduce their accrued leave balance, and calculate the applicable superannuation.

To cash out annual leave

Start a new pay run for the employee.
Click the blue zoom arrow () to review their pay.
Remove all hour and dollar values from the pay.
Enter the number of annual leave hours being cashed out against the annual leave wage category.
If the employee shouldn't accrue entitlements on cashed out leave payments, remove all hours from the leave entitlement categories. If you're not sure if this applies in your business, check with an accounting advisor or the relevant regulatory body in your state or territory.

What about super?
Cashed out annual leave is generally included in an employee's ordinary time earnings (OTE) for the purpose of calculating the Superannuation Guarantee employer contribution. For clarification, check with an accounting advisor or the ATO.
Finish processing the pay as normal.