Leave Loading (Cashed Out) is applicable when the Payee is being paid without taking an absence from work and the payment is linked to the lost opportunity to work overtime.
For example, under the Banking, Finance and Insurance Award 2020 [MA000019]. A Payee is entitled to Annual Leave Loading of 17.50% when the Payee is taking a period of Annual Leave.
Leave Loading (Cashed Out) uses a portion of the Rate Per Hour set in the Payee Master File (17.50%) and Leave Entitlements are not applicable. Payments with this pay type are considered to be W1 (Total of Salary, Wages & other payments) and Taxable, however, they are not Ordinary Time Earnings (OTE).