Separating Casual Loading from Base Rate

[Deleted User]

Due to recent developments in regards to Casual Employees, we are looking to report the Casual loading as a separate payroll item.

This should then reflect as:
Base rate (for Normal time Hours) at X hours
Casual Loading (25% of base rate) at X hours

I have created the Casual loading as a Overtime type, which then adds the normal hours and Casual loading together when calculating total hours.

How do I exclude the Casual loading from being calculated as additional hours worked?
Please note, this is not related to total hours worked calculated for accumulating leave.

Willem Oosthuizen

Carolyn_9716443

I have the same query Willem. Did you ever received a response?

glendaveale

I don't think there is a way around it if you are using multiple ordinary hours eg normal, time & half, double time etc.
I have to just divide the hours in half to check my entry.

Karla

I have the same question.

I have also set up Casual Loading as an overtime type payroll item and the Casual Loading hours are being added to the Normal hours making the total worked hours wrong.

Can someone please confirm if there is a better way to set up Casual Loading?

Acctd4

Unfortunately, if you want to use separate Payroll Item, this is how it displays 😕

However, as per Fair Work (see screenshot below from FW's website), compliance can still be achieved by including an additional note - either as separate text on a customised payslip or by editing the Payroll Item name - to indicate casual loading inclusion:

Karla

Thank you for your response Shaz.

Just to be clear, if we decide to use a separate Payroll Item for the Casual Loading there are no other repercussions other than the Total Worked hours displaying a wrong amount?

This is not really about Fair Work compliance, we would just prefer to display the base rate separate to the casual loading on the pay slips.

Thank you!

Acctd4

No 😀 Provided you ensure it's configured correctly to not accrue any leave, it will only affect the total hours quantity displayed. Personally, I don't like having the hours incorrectly displayed but there are a number of large organisations whose payroll is set up this way.

Kris_Williams

I use this same process and yes total hours worked are broken down by 6 hours normal 3 hours sat loading and 3 hours Sunday loading,

Karla

Got it!

Thanks again for your help. I really appreciate you taking the time to explain this to me.

Toni_9526396

I have experimented with setting it up the same way as the Leave loading but at the 25% rate instead of 17.5%. That seems to work correctly and lists the standard base rate plus the casual loading on the pay slip. Just need to change the GL code its applying to and I ticked the "Calculate this item based on hours" box when setting it up.

1. New payroll Item
2. Addition
3. Name e.g. casual loading in lieu of leave entitlements 25%
4. Expense account
5. Tax tracking type Gross payments
6. Taxes - payroll & state (depending on your business type)
7. Calculate this item based on hours
8. Default rate 25%
9. Inclusions - Tick super
10. Finish

Hope this helps