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Defining Long Service Leave (LSL)

Introduction

Fulltime and Part-time employees earn long service leave at varying rates. Use this window to define the different rates as they apply to your organisation.

Getting There:

[ SC ] –> Payroll / Earning Code / Long Service Codes

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Introduction

long service leave

Explanation

LSL Code

Enter between 3 – 6 characters for the code.

Description

Enter a description for the code.

Accrual Method

Select the accrual method from the available options.

Pro-Rata Rate

Enter a percentage if “Pro-Rata” has been selected as the accrual method.

Days per annum

Enter the value here if “Grant on Anniversary” is selected.

Inclusions

Include leave in the calculations for the checked values.

Superannuation

Check this box if super is to be calculated on this leave.

Workers Compensation

Check this box if workers comp is to be calculated on this leave

Accrue on Days

1)  Means it is based on days worked per year and will accrue weekly (1/52 of the entitlement per week). From the method “Days per annum” below which gave 4.333 days, we multiply this by 8 (hour per day) to get 34.664 Hours.
     Eg 4.333 * 8 = 34.664 hours for the year


2)  Per Week we divide by 52
     (34.664 hours / 52 weeks)= 0.666 Hr/week

Grant on anniversary

1)  Means the entitlement will be granted at the commit process of the first pay run after the anniversary date.

Pro-Rata of Hours Rate

1)  Means the pro-rata rate will be used to calculate the entitlement base on the full time accrual.
E.g.     For a yearly entitlement of 34.664 hours per week.
     (34.664 hrs/52 weeks) = 0.666 Hr/week
     (0.666 Hr/Week / 40 Hrs in week) = 0.016 / hour worked

  • The rate to be used for employees who accrue leave based on hours worked. Enter if “Accrual Method” selected is “ProRata of hours”
  • As per the formula for “Pro-Rata of Hours” option the value entered here would be the figure (0.016) as a percentage, i.e.: 1.6%

Days per Annum

Enter the number of days to be accrued each year. To be entered when “Accrual Method” (above) selected is not “Pro Rata of hours”
To calculate this:
1)  Divide “Days of Long Service to Accumulate” by Years to Accumulate It
Eg 13 weeks long service (5 days a week) for 15 years would look like
     (13 weeks x 5 days / week )/ 15 years
       (13*5) / 15 = 65/15 = 4.333 Days per Annum

PAYG Payment Summary Box
Choose the field where the amount will appear on the group certificate.

General Ledger Account
Enter your account code if the general ledger has been setup.

Accrue and Entitled After
1. Accrue after
A.      Enter the number of months before accrual is to show. The algorithm used in the system will however never show accruals prior to 2 months therefore entering a 2 or less would have no affect.
B.      Accruals will be calculated back to the start date.
2. Entitled after
A.      Enter the number of months before employee will be entitled to the accrual.
B.      If leave is to be taken prior to entitlement date a warning will be given
C.      Leave prior to entitlement date may still be paid if approved.

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