Overview
Use this process to record annual leave being cashed up and pay the amount to the employee.
An employee can request in writing to cash up a maximum of one week of their statutory annual leave entitlement per entitlement year, subject to employer approval. Accrued leave cannot be cashed up.
Calculate the cash up amount
- Hover over Reports and click Total Leave Report.
- Locate the employee whose annual leave is being cashed up. Use the filters if necessary.
- In the Annual Leave section of the table, check the Entitlement (Days) column. Ensure the employee has enough entitled leave to cover the cash up.
- Click anywhere in the employee’s row within the Annual Leave section to open their individual annual leave report.
- Scroll down to the Annual Leave Daily Rate field.
- Multiply the number of days being cashed up by the Annual Leave Daily Rate. For example, 5 days x $216.67 = $1,083.35 gross. Record this amount for use when processing the payment.
Record the leave being cashed up
- At the top of the employee’s annual leave report, click Add Paid Out Leave.
- Select a Category (optional).
- Select the date the cash up will be paid to the employee.
- Enter the number of days being cashed up.
- Enter a note (optional).
- Click Save, then close the pop-up window.
- Check the employee’s annual 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: Discretionary
- Frequency: All other periods other than weekly to monthly