Leave loading is now supported in the following areas:
- Leave Category Setup
- Leave Category Templates
- Employee Leave Allowances
- Leave Category API
Setting up Leave Loading
To set up leave loading follow these steps:
- On the payroll dashboard click on the payroll settings tab
- Click on Leave Categories under the “Pay Run Settings” heading
- Click on the leave category that you want to apply leave loading to, or create a new leave category
- In that leave category enter the Leave Loading % that you wish to apply to that leave category:
- Click save. Please note that changing the leave loading rate will only be applied to new employees that are associated with this leave category. Existing employees will not have their leave loading rate changed.
Setting up Leave Loading with Leave Templates
- Leave loading can be applied to groups of employees via the “Leave Templates” feature. If you wish to apply leave loading to a specific template, from the business menu select “Settings” –> “Leave Templates” and either select a new leave template or choose an existing leave template to apply leave loading to:
- When you select “Save” you will be asked if you wish to apply leave loading to all employee that have the leave template applied
Setting leave loading for individual employees
- You can also set the leave loading rate for an individual employee quite easily. Simply open the employee file, and select “Leave Allowances”
- Under the leave category that you wish to apply leave loading, set the rate and click “Save”
- Leave loading will now be set for that individual employee.
Applying leave loading in a pay run
Once you’ve set up leave loading for an employee, applying leave loading to a pay run is very simple.
- In the pay run find the employee you wish to apply leave to. Expand their row and click the blue “Actions” button and “Take Leave”
- A new leave row will appear. Select the leave category which has leave loading applied and you will now be able to choose if leave loading should be applied
- Once you’ve applied the leave, click save and a new “Leave Loading” earnings line will be applied in the pay run
Does leave loading apply for terminations?
If your employees are required to have leave loading applied to termination pay outs, the system will automatically apply leave loading for terminations as well.
Simply click the blue “Actions” button for the employee you wish to terminate in the pay run, select “Terminate Employee” and click the green “Save” button.
The system will then apply any leave that needs to be taken and will also allow you to apply leave loading to these leave amounts.
Calculating Super on Leave Loading
According to ATO guidelines on leave loading, annual leave loading is not included in OTE if you can show that it is paid to compensate employees for being unable to work overtime while on leave. This applies to some businesses and not others, so it is up to the payroll administrator to configure the superannuation rate according to their business needs.
If you require super to be calculated on any Leave Loading earnings you can set this up in the system generated Leave Loading pay category.
To do this you can go to payroll settings -> pay categories -> Leave Loading (SYSTEM) -> add in the required Super Rate -> save.
If you have any issues or questions about the new leave loading functionality please let us know via support@yourpayroll.com.au .
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