How does Elite Payroll handle leave loading?

If the employee is eligible for leave loading, Elite Payroll will add leave loading to the employee's pay when you pay them Annual Leave. The hourly amount will be grossed up by the leave loading percentage. For example, if the normal hourly rate is $10 per hour, and the employee is eligible for 17.5% leave loading, Elite Payroll will enter $11.75 ($10 + 17.5%) in the amt. column.

If the employee is eligible to receive leave loading, the following rules apply:

$image\dash.gif$ The first $320 of the leave loading is tax-free.

$image\dash.gif$ The leave loading is not subject to superannuation.

$image\dash.gif$ A maximum of $320 is tax-free in a year. This is automatically taken into account when you use the Annual Leave pay rate. If you don't use this rate you'll need to calculate the amounts manually.

It is important to set up leave loading correctly so that the $320 tax-free threshold is taken into account. Leave Loading is ONLY calculated when the Annual Leave pay rate is used to record leave.

Setting up leave loading for an employee

1 From the Lists menu, choose Employees.

2 Click to select the employee that you want to set up Leave Loading for and then click Employee>Edit.

3 Click on the Leave tab.

4 Enter the Leave Loading rate in Employee Annual Leave Loading box.

To process the employee's pay including leave and leave loading, refer to Processing a Pay with Leave.

Leave loading can also be set up for the employee's award through the Awards – Standard Details tab

What if the employee has already taken some leave?

If you have been using Elite Payroll throughout the year and you have used the Annual Leave pay rate, Elite Payroll will track how much of the tax-free threshold has been used during the year. For example, if the employee was paid $200 in annual leave loading, Elite Payroll will apply up to $120 of tax-free threshold to the next annual leave payment.

If the employee has already used up part of his/her tax-free threshold for the current year, you'll have to actually process a pay for the date that the threshold was used. Make sure that when you enter the year-to-date amounts in the Employees List – History section that you exclude the amount from this pay, in order to avoid double counting these amounts.