Cash up alternative leave

Overview

Use this process to record alternative leave being cashed up and pay the amount to the employee.

An employee can request to cash up an unused alternative leave day once 12 months have passed since they became entitled to it. The employee and employer must agree on the payment amount, which must be paid as soon as practical after reaching agreement.

Calculate the cash up amount

1. Hover over Reports and click Total Leave Report.
2. Locate the employee whose alternative leave is being cashed up. Use the filters if necessary.
3. In the Alternative Leave section of the table, check the Balance (Days) column to ensure the employee has enough leave to cover the cash up. Confirm that each day being cashed up has been owing for at least 12 months.
4. Click anywhere in the employee’s row within the Alternative Leave section to open their individual alternative leave report.
5. Scroll down to the Daily Rate field.
6. Multiply the number of days being cashed up by the Daily Rate. For example, 2 days x $216.67 = $433.34 gross. Record this amount for use when processing the payment.

Record the leave being cashed up

7. At the top of the employee’s alternative leave report, click Add Paid Out Leave.
8. Select a Category (optional).
9. Select the date the cash up will be paid to the employee.
10. Enter the number of days being cashed up.
11. Enter a note (optional).
12. Click Save, then close the pop-up window.
13. Check the employee’s alternative leave report to confirm their balance has reduced by the number of days entered.

Recording paid out leave reduces the employee’s leave balance. You must also process the payment using one of the options below.

Pay the cash up amount

Pay the gross amount calculated in step 6 as an extra payment in an upcoming pay run or separately using a manual pay.

• Upcoming pay run: Follow the Extra Payment guide. Add the payment before running the pay or at Step 3 of the Payroll Wizard.
• Manual pay: Follow the Manual Pay guide, referring to the Extra Payment section.

For either option, use the following settings when adding the extra payment:

• Type: Non-Discretionary
• Frequency: All other periods other than weekly to monthly