Pay employees leave loading
Add leave loading to employees who are eligible to receive it while taking leave.
To find out more about leave loading rates and eligibility refer to payment for annual leave (Fair Work ombudsman website).
Step 1: Add or edit existing pay item
- In the Settings menu, select Payroll Settings.
- Click Pay Items tab.
- Click Leave to view all leave pay items.
- Click on the leave item to add leave loading to. You could also add a new leave pay item.
- At Leave Loading Rate, enter the percentage of loading to apply.
- Click Save.
Step 2: Edit the employee’s tax settings
- In the Payroll menu, select Employees.
- Click the employee you want to assign a leave type to.
- Click the Taxes tab.
- Select the Eligible to Receive Leave Loading checkbox.
- Click Save Only to save the change, or File Now to refile to TFN Declaration. Check with the ATO to see if you need to refile the employee’s TFN Declaration.
When the employee takes leave, leave loading is automatically added to their pay, but won’t show up as a separate line in the pay run. It does appear in their payslip, for example, Annual Leave (incl. leave loading).
The super guarantee charge (SGC) isn’t added to leave loading, in accordance with ATO guidelines.