Question: Long Service Leave accrual rates
Comments
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Hi Denise
This will be dependent on which state you’re in as the entitlement varies.
As a guide, here in WA the entitlement is 8.6667 weeks after 10 years which breaks down to an hourly accrual of 0.01667 hours per hour worked.
I always recommend setting ALL leave calculations to accrue per hour NOT per pay as the latter doesn’t work when hours fluctuate.
Shaz Hughes Dip(Fin) ACQ NSW, MICB
Reckon Accredited Professional Partner Bookkeeper / Registered BAS Agent (No: 92314 015)
Accounted 4 Bookkeeping Services
Ballajura, WA
0422 886 003
Write a replyShaz Hughes Dip(Fin) ACQ NSW, MICB
*** Reckon Accredited Partner (AP) Bookkeeper - specialising EXCLUSIVELY in Reckon Accounts / Hosted ! ***
* Regd BAS Agent (No: 92314 015)* ICB-Certified Bookkeeper* Snr Seasonal Tax Consultant since 2003 *
Accounted 4 Bookkeeping Services
Ballajura, WA
(NB: Please give my post a Like or mark as Accepted Answer if I have been able to resolve your query as this helps others when seeking solutions!)
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Thanks for your reply Shaz, it looks like NSW is the same as WA for the LSL entitlement. I think your suggestion of having all leave calculations set to accrue "per hour" rather than "per pay" is very sensible. Would I be able to change my accrual settings to "per hour" from the current "per pay" and would there be any ramifications in doing this?
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Providing the current leave balances are correct, there’s no problem changing it to Hourly going forward.
The only thing to be aware of is it will then ONLY calculate when the number of “Hours” are entered on a Pay as this is what drives it.
Eg If you’re paying anyone a Salary, you MUST enter the Hours on each pay in order for the leave to calculate.
The same applies to any leave taken/paid – You MUST enter the “Hours” quantity for the leave balance to accrue & reduce accordingly.
The Hourly accruals are as follows (based on a 37.5 / 38-hour week):
Personal (Sick): 0.03846 (The system rounds this to 0.03833 – This is fine)
Holiday (Annual): 0.07692 (The system may round this to 0.07694 – This is fine)
LSL: 0.01667
Shaz Hughes Dip(Fin) ACQ NSW, MICB
Reckon Accredited Professional Partner Bookkeeper / Registered BAS Agent (No: 92314 015)
Accounted 4 Bookkeeping Services
Ballajura, WA
0422 886 003
Shaz Hughes Dip(Fin) ACQ NSW, MICB
*** Reckon Accredited Partner (AP) Bookkeeper - specialising EXCLUSIVELY in Reckon Accounts / Hosted ! ***
* Regd BAS Agent (No: 92314 015)* ICB-Certified Bookkeeper* Snr Seasonal Tax Consultant since 2003 *
Accounted 4 Bookkeeping Services
Ballajura, WA
(NB: Please give my post a Like or mark as Accepted Answer if I have been able to resolve your query as this helps others when seeking solutions!)
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Thanks Shaz, your response is very helpful and thorough. I will be changing over to "per hour" leave accruals and be mindful of your advice. Cheers
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Not so Kevin.
Whilst entitlement to LSL overall is part of the NES , the actual accrual periods & entitlement timeframe varies between the states :
https://www.fairwork.gov.au/how-we-will-help/templates-and-guides/fact-sheets/minimum-workplace-enti...Shaz Hughes Dip(Fin) ACQ NSW, MICB
Reckon Accredited Professional Partner Bookkeeper / Registered BAS Agent (No: 92314 015)
Accounted 4 Bookkeeping Services
Ballajura, WA
0422 886 003
Shaz Hughes Dip(Fin) ACQ NSW, MICB
*** Reckon Accredited Partner (AP) Bookkeeper - specialising EXCLUSIVELY in Reckon Accounts / Hosted ! ***
* Regd BAS Agent (No: 92314 015)* ICB-Certified Bookkeeper* Snr Seasonal Tax Consultant since 2003 *
Accounted 4 Bookkeeping Services
Ballajura, WA
(NB: Please give my post a Like or mark as Accepted Answer if I have been able to resolve your query as this helps others when seeking solutions!)
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Yes, the LSL law is federal however the actual entitlement is state-based
https://www.fairwork.gov.au/how-we-will-help/templates-and-guides/fact-sheets/minimum-workplace-enti...Shaz Hughes Dip(Fin) ACQ NSW, MICB
Reckon Accredited Professional Partner Bookkeeper / Registered BAS Agent (No: 92314 015)
Accounted 4 Bookkeeping Services
Ballajura, WA
0422 886 003
Shaz Hughes Dip(Fin) ACQ NSW, MICB
*** Reckon Accredited Partner (AP) Bookkeeper - specialising EXCLUSIVELY in Reckon Accounts / Hosted ! ***
* Regd BAS Agent (No: 92314 015)* ICB-Certified Bookkeeper* Snr Seasonal Tax Consultant since 2003 *
Accounted 4 Bookkeeping Services
Ballajura, WA
(NB: Please give my post a Like or mark as Accepted Answer if I have been able to resolve your query as this helps others when seeking solutions!)
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Yes Kevin - No confusion here
Shaz Hughes Dip(Fin) ACQ NSW, MICB
*** Reckon Accredited Partner (AP) Bookkeeper - specialising EXCLUSIVELY in Reckon Accounts / Hosted ! ***
* Regd BAS Agent (No: 92314 015)* ICB-Certified Bookkeeper* Snr Seasonal Tax Consultant since 2003 *
Accounted 4 Bookkeeping Services
Ballajura, WA
(NB: Please give my post a Like or mark as Accepted Answer if I have been able to resolve your query as this helps others when seeking solutions!)
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Thanks Kevin but I'm not sure what you are actually meaning with your comment. Can you be more specific please?
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Hi Kevin, I'll just work through it all when time permits (this week is hectic!) Thanks Denise
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