Summary

From 01/07/2012, the ATO removed the separate withholding scale for payees who are entitled to leave loading, and these payees are no longer subject to a higher withholding tax rate in every pay. From 01/07/2012, if you pay leave loading as a lump sum, you have to use the tax table for back payments, commissions, bonuses and similar payments to calculate withholding tax. If you have leave loading allowances with Calculation method = "L. Pay Pro Rata Leave Loading Unpaid", then you have to enter the following Details (i) tab values:

• Tax override = "Yes"
• Tax override type = "Bonus".

  Note: Do not enter a Tax override rate value.

There is generally only one 'L' type calculation created for an organisation.

The transaction total is calculated by:

Quantity * Rate

Automatically generating transactions for overdue holiday pay

PayGlobal can automatically include overdue holiday pay in an employee's wages when the Open Standard Pay run command is used.

The employee must have data in the Overdue loading ($) field in the Annual Leave tab page of the employee record for a transaction to be created when a Standard pay is opened.

This only occurs when the an Annual Leave anniversary date falls in this pay.

Quantity

The value in the Overdue loading ($) field in the employee record.

Rate

Rate = 1

See also

Allowance Calculation Methods

Allowances - Details (i)