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Item

Description

Result

A

Hours per day e.g. 7.5, 7.6 or 8

7.6

B

Hours per week e.g. 37.5, 38 or 40 (A * 5 days)

38

C

Leave hours per year (20 days * A)

152

D

Hours accrued per hour (C / 52 / B)

0.0769


i.e. 38-hour week you accrue 2.92 hours (D * B)



Total Example: Total additional hours to accrue for unused annual leave to finish date where you need to accrue for an additional 45.6 hours for the fortnight (6 days * 7.6 hours per day).

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Once you have calculated the additional leave, you will need to add this to any other unused annual leave for that employee on their timesheet when processing the pays .You can then audit your pays and print pay slips as per normal.   (Annual leave accrued shows as a negative amount in LawMaster).

Tax on Unused Annual Leave

On the new Unused Annual Leave code created, the Normal field is unticked, this means that tax will be calculated at a higher rate in LawMaster.  You will need to speak with your Accountant to calculate the tax correctly on the final pay. Also refer to the below link:

https://www.ato.gov.au/Rates/Schedule-7---Tax-table-for-unused-leave-payments-on-termination-of-employment/

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