Process a Pay Run with Annual Leave (Cashed Out)

!e-PayDay® Payroll Support Personnel are not registered Taxation or BAS agents (members of the Tax Practitioners Board (TPB)) and therefore are unable to provide payroll advice. We can assist you in the use of the software in obtaining your desired outcome based on advice provided to you by your Accountant or Bookkeeper.

!Annual Leave (Cashed Out) is designed for when an employee receives payment for their leave hours and continues working, instead of taking time off. It is NOT designed to be used as part of a Cessation Pay Run or when the Employee is actually taking the leave period.

!Please ensure you have checked your obligations with your relevant government body per the above links, including Fair Work Australia as Annual Leave Cashed out is NOT available in some Australian States and under some Awards & Agreements.

1. Ensure you have added an Annual Leave (Cashed Out) Pay Rate
2. When composing the Employees Pay, click Line 2.
3. Select Annual Leave (Cashed Out).
4. Enter the Annual Leave (Cashed Out) QTY.
5. In Start Date and End Date, enter either the Payment Date or the Pay Run Period Ending Date.
6. Click OK.
   1. If Tax Treatment Annual Leave (Cashed Out) – Schedule 5, Method A was selected when adding the Annual Leave (Cashed Out) Pay Rate, the following alert will be displayed,
      1. Tax Adjustment. Using a Method A Pay Rate Type will apportion withholding (tax) over a defined period. Enter the number of Pay Periods to apportion withholding (tax) for this Pay Rate Type. If Cancel is clicked, tax will automatically be apportioned over ONE Pay Period. The number must be between 1 and 52
      2. Enter the number of pay periods you wish to apportion withholding (tax) over.
      3. Click Ok.
   2. If Tax Treatment Annual Leave (Cashed Out) – Schedule 5, Method B (ii) was selected when adding the Annual Leave (Cashed Out) Pay Rate, withholding (tax) will be automatically apportioned over the whole year (52 Weekly, 26 Fortnightly or 12 Monthly pay runs).
7. Make any other changes as necessary.
8. Click Pending or OK to save all changes.