Time Off In Lieu (Banked) Explained (System Default Pay Rate)
Sep 25, 2024
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🎯 The reporting of payments for Time Off In Lieu (Banked) has not changed per the Australian Taxation Office Single Touch Payroll Phase 1 guidance. Time Off In Lieu (Banked) continues to not be reported until one of the following Pay Types is selected;
- Time Off In Lieu (Taken).
- Time Off In Lieu (Taken) (Incorrect Hours).
- Time Off In Lieu (Taken) (Incorrect Rate).
- Time Off In Lieu (Cashed Out).
- Time Off In Lieu (Cashed Out) (Incorrect Hours).
- Time Off In Lieu (Cashed Out) (Incorrect Rate).
- Unused Time Off In Lieu (Equal to or less than the Cap).
- Unused Time Off In Lieu (More than the Cap).
- Death Benefit Time Off In Lieu (Tax Free).
- Death Benefit Time Off In Lieu (Equal to or less than the Cap).
- Death Benefit Time Off In Lieu (More than the Cap).
🎯 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.
Time Off In Lieu (Banked) is applicable when there is a written agreement to allow overtime worked to be banked as Time Off In Lieu, allowing the Payee to take paid time off instead of being paid overtime pay.
For example, under the following Awards, the Payee and the Payer may agree in writing for the Payee to take time off instead of being paid for a particular amount of overtime that has been worked;
- Real Estate Industry Award 2020.
- Horse and Greyhound Training Award 2020 [MA000008].
- Racing Industry Ground Maintenance Award 2020 [MA000014].
Time Off In Lieu (Banked) uses the Quantity entered in the Pay Run to increase the Time Off In Lieu Balance and are not considered to be W1 (Total of Salary, Wages & other payments), Taxable or Ordinary Time Earnings (OTE).
