Paid Leave

In STP Phase 1 - Paid leave was part of "Gross Payments"

In STP Phase 2 - Paid leave is reported separately and required to be defined by leave 'types' for Services Australia.

Points to note for the setup of Allowance records from v4.59 onwards as follows:

• Allowance Subtype

  Every allowance used for leave must have the Allowance record Subtype field set.

  The options: Taken, Cashed out and paid on termination are each allocated to different ATO reporting categories.

  • Leave taken or leave cashed-out allowances require the ATO reporting category to be set to "Paid Leave" and an appropriate the ATO Reporting Subcategory.
  • Termination allowances have the ATO Reporting Category/Subcategory fields handled automatically by PayGlobal.
• Backpays
  • Every type of leave 'back-paid' must be separately itemised - you can no longer have a generic back pay allowance record.
  • Back pays owing within the current tax year (i.e. less than 12 months) must have Tax override type “Bonus”
  • Back pays owing from a past tax year (more than 12 months) must have Tax override type “Lump sum in arrears”, to ensure these payments are reported as Lump Sum E.
• Non-OTE leave
  • Must have the ATO Reporting Category set to "Over-time" - not "Paid Leave".
• Optional allowances:

  The following allowances are optional, i.e. only need to be setup if your organisation requires them:

  • Cash-up of unused sick leave
  • Pay-out of unused sick leave on termination
  • Accrued days off (ADO)
  • Rostered days off (RDO)
  • Time in lieu (TIL)
  • TIL that is cashed-out is required to be reported to the ATO as Overtime, all other cashed-out leave is reported to the ATO as “Cashed out of leave in service”

Topic: 44784