Leave Loading (Cashed Out)

Sharlyce Reed

Oct 25, 2023

497

🎯 The reporting of payments for Leave Loading (Cashed Out) are now disaggregated per the Australian Taxation Office Single Touch Payroll Phase 2 guidance. Rather than being included in Gross, Leave Loading (Cashed Out) is now reported separately under Overtime.

🎯 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.

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).