Time Off In Lieu (Cashed Out)

Moni Petcharat

May 24, 2023

463

🎯 The reporting of payments for Time Off In Lieu (Cashed Out) are now disaggregated per the Australian Taxation Office Single Touch Payroll Phase 2 guidance. Rather than being included in Gross, Time Off In Lieu (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.

Time Off In Lieu (Cashed Out) 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 (Cashed Out) uses the Rate Per Hour set in the Payee Master File multiplied by 1.5 (150.00%) and Leave Entitlements are not applicable. Payments with this pay type are considered to be Salary & Wages and Taxable, however they are not Ordinary Time Earnings (OTE).