NOTE this is not for sick leave.

  1. Check with customer the day employee start to leave + the day they return to work. 
    1. e.g.: leave on the 15th and come back to work on the 18th. Hence leave is from 15th - 17th

  2. Ensure that the following items are INCLUDED in the leave payment:
    1. the BASE PAY for all ORDINARY HOURS worked. 
    2. pro-rata allowance (i.e. allowances they earn per day of work)
    3. entitled allowance (i.e. allowances paid regardless if they worked or on leave)
    4. other pay categories that fall outside the leave period.

  3. ensure the following are EXCLUDED in the leave payment
    1. overtime rates (if the day they take leave falls on the same day that they normally worked as overtime. e.g. if they normally work overtime on Monday, and monday is part of their leave taken, then exclude)
    2. penalties / weekend loadings (if the day they take leave falls on the same day that they normally work on. e.g. if they normally work on saturday, and saturday is part of their leave taken, then exclude)
    3. allowances (unless pro-rata)
    4. bonuses.
      .
  4. see if leave loading is applicable, and if the rate is the national standard 17.5% or per the specific industry award rate

  5. see if any of the days within the leave period falls on a public holiday (public holidays must be excluded from leave);
    1. e.g. Leave from the 15th to the 17th = 3 days. but if the 16th is a public holiday, then the leave is only for 2 days. the public holiday they are paid normal as if they were at work.

  6. Open an excel and have two sections: a NORMAL pay as if leave was never taken + an AFTER LEAVE PROCESSED pay to compare the adjustment. See attachment

  7. Accounting software
    1. On xero
      1. PAYROLL > LEAVE > select the emloyee > select the leave type > select the period of leave taken
      2. Enter timesheet if necessary
      3. PAYROLL > PAY RUN > select the period for the payrun > select the employee thats taking leave
      4. add payroll categories if holiday leave/ annual leave + leave loading isn't there yet.
      5. enter data as per step 6
    2. On Myob
      1. Enter timesheet if necessary
      2. select PROCESS PAYROLL > fill in the pay period, then select next > select employee > select NEXT
      3. add payroll category if holiday leave / annual leave +  leave loading isn't there yet.
      4. enter data as per step 6
  8. send to client to approve



Reference

https://www.fairwork.gov.au/how-we-will-help/templates-and-guides/fact-sheets/minimum-workplace-entitlements/annual-leave

Workplaceinfo.com.au