Time Off In Lieu (Taken)

Moni Petcharat

May 24, 2023

552

🎯 The reporting of payments for Time Off In Lieu (Taken) are now disaggregated as per the Australian Taxation Office Single Touch Payroll Phase 2 guidance. Rather than being included in Gross, Time Off In Lieu (Taken) is now reported separately under Paid Leave Type Code = O.

🎯 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 (Taken) 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

Time Off In Lieu (Taken) uses the Rate Per Hour set in the Payee Master File (100.00%) and Leave Entitlements are applicable, provided the rules have been configured. Payments with this pay type are considered to be Salary & Wages, Taxable and Ordinary Time Earnings (OTE).