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Processing Annual Leave and Personal Leave

When an employee takes annual leave or personal/carer's leave, you need to record it in their pay run so that leave balances are updated and the correct amounts are reported to the ATO via STP.

Adding Leave to a Pay Run​

  1. Navigate to Payroll > Pay Runs and open the relevant pay run.
  2. Click on the employee's name to view their pay details.
  3. Click Add Pay Item.
  4. Select the appropriate leave type:
    • Annual Leave for holiday leave.
    • Personal/Carer's Leave for sick leave or carer's leave.
  5. Enter the number of hours the employee is taking as leave.
  6. The leave rate will default to the employee's ordinary hourly rate. Adjust if needed.
  7. The employee's leave balance will reduce by the hours entered.
tip

You can split an employee's pay between ordinary hours and leave hours in the same pay run. For example, 30 ordinary hours and 8 hours of annual leave for a 38-hour week.

Checking Leave Balances​

Before processing leave, you can check an employee's current balance:

  1. Go to Payroll > Employees and select the employee.
  2. Open the Leave tab to view accrued and available balances for each leave type.
caution

If an employee does not have sufficient leave balance, the pay run will still process but the balance will go into negative. Review your organisation's policy on negative leave balances.

Leave Loading​

If your organisation pays leave loading (typically 17.5% on annual leave), ensure the Annual Leave Loading pay item is configured under Pay Items and added to the employee's pay run alongside the annual leave hours.