Annual Leave (Cashed Out) Explained (System Default Pay Rate)
Nov 16, 2024
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🎯 The reporting of payments for Annual Leave (Cashed Out) are now disaggregated per the Australian Taxation Office Single Touch Payroll Phase 2 guidance. Rather than being included in Gross, Annual Leave (Cashed Out) is now reported separately under Paid Leave Type Code = C.
🎯 If you are unsure if this Pay Type applies to your circumstances, please refer to the Payee's Employment Contract or obtain advice from either the Australian Taxation Office or Fair Work Ombudsman.
Annual Leave (Cashed Out) is applicable when the Payee is being paid without taking an absence from work. If the Payee is entitled to loading when Annual Leave is taken, this Pay Rate is used in conjunction with either Leave Loading (Cashed Out, OTE) or Leave Loading (Cashed Out).
For example, the following Awards contain a provision which allows the Payee to 'cash out' their Annual Leave;
- Clerks - Private Sector Award 2020 [MA000002].
- Fast Food Industry Award 2020 [MA000003].
- General Retail Industry Award 2020 [MA000004].
- Hair and Beauty Industry Award 2020 [MA000005].
Annual Leave (Cashed Out) uses the Rate Per Hour set in the Payee Master File (100.00%) and Leave Entitlements are not applicable. Payments with this pay type are considered to be W1 (Total of Salary, Wages & other payments), Taxable and Ordinary Time Earnings (OTE).
