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The ATO does not allow you to report negative lump sum values in employee payment summaries. Exolvo minimises the occurrence of negative lump sums and warns you when they occur.
Termination pays
Exolvo assigns unused annual leave and long service leave paid out on termination to lump sum values.
Exolvo subtracts used annual leave paid out on termination from salary or wages, instead of including it as a negative Lump Sum A value. If the annual leave payout transaction contains negative post-93 or pre-93 components, then the leave is regarded as ‘used’ and it is taxed with the gross.
Exolvo creates long service leave payout transactions only if sufficient unused long service leave is available. If a termination pay contains negative lump sum components for long service leave, the payout transaction is not created and a warning appears in the audit log.
Post-termination pays
If an employee's leave payouts on termination were calculated incorrectly, you may need to adjust their lump sum values in a post-termination pay. Such adjustments could increase or decrease leave on termination values so Exolvo allows negative lump sum components in post-termination pays.
The method that you use to adjust leave balances for terminated employees depends on whether their annual leave or long service leave table has Keep details on termination = "Yes" or "No".
The following topics explain how to make lump sum adjustments in these scenarios.
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Topic: 30360
