To assign the right ATO categories to leaves, please follow the below process -
Step 1 - Click on "Settings"
Step 2 - Click on "Payroll"
Step 3 - Click on "Leaves"
Step 4 - Click on "Add New"
Step 5 - Add the required details
Below is the description for each field
Leave Name - Add the leave name of your choice
Loading Rate - Leave loading is money paid on top of an employee's normal pay to compensate them for expenses during annual leave.
Refer to this article on How to set up leave loading rate?
Calculation Type - Select the calculation type
Paid - Select calculation type as "Paid" if the created leave is a paid leave.
Unpaid - Select the calculation type as "Unpaid" if the created leave is unpaid.
ATO Reported Category - This is a new payment classification introduced for Phase 2 reporting. Select the suitable category.
Cash-out of leave-in service
Ancillary and defence leave
Other paid leave
Paid parental leave
Unused leave on termination
Worker's compensation
Refer to each ATO reporting category in detail here - Description of ATO leave reporting categories
Calculation Basis - Select the appropriate calculation basis
Based on ordinary earnings: Number of hours the employee accrues each pay period, based on an employee’s ordinary earnings for the pay run.
Fixed amount each period: Number of hours the employee will accrue each pay period, based on their annual entitlement (Hours Accrued Annually).
Manually recorded rate: Manually enter the number of hours the employee accrues in each pay run.
No calculation required: Leave isn't accrued, but you can enter an amount manually in the pay run if needed.
Hours Accrued Annually:
For the calculation basis "Based on ordinary earnings" enter the total number of hours a full-time employee accrues each year. Payroo will pro-rata the accrual based on the hours an employee works. The leaves hours will be changed when we increase or decrease the working hours of any employee inside the pay run.
For the calculation basis, "Fixed amount each period" enter the number of hours the employee will accrue each pay period, based on their annual entitlement, the leaves hours won't be changed when we increase or decrease the working hours of any employee inside the pay run
For calculation basis "Manually recorded rate" enter the number of leave hours that the employee accrues in each pay run and the leaves accrued can also be changed inside the pay run
For the calculation basis, "No calculation required" there is no need to enter the hours here, but you can enter an amount manually in the pay run if needed.
Show on payslips - Select show on payslips if you wish to show the leaves on payslips
Carry forward leaves - Select carry forward leaves if you wish the leaves to be carried forward to the next financial year
Step 9 - Click on "Create"
Refer to this article on - How to assign the leaves to the employees?
If you have any questions or feedback, please email us at support@payroo.com.au