Long Service Leave Accruals

Ang McDonald

HI,

I have 2 employees who have now been employed by me for 7 years and one wants to take some LSL.  I've never coded or added any provision in my Reckon Hosted for LSL.  I have worked out they are both entitled to 6.9 weeks as of 21/2/2020. How do I code this? My accountant advised most of his customers just keep manual records of the staff LSL, and do not add any details to Reckon Hosted. Any advice would be appreciated! Thanks.

Christopher Donohue

I don't know which state you operate in but in NSW, employees are not usually entitled to take Long Service Leave until they have achieved ten years of service.

Bruce

I've always managed LSL in a parallel fashion to annual leave with the leave accruing for every hour worked (using one of the "other leave" tabs).   Seems to work ok for permanent staff full or part time.
Definitely use a spreadsheet to record hours worked and entitlements - in Victoria these are not straight forward calculations

Jacqui Allen

I'm of the same understanding

Ang McDonald

Thank you.  Victoria is my state and it changed in November 2018 that they can access their LSL after 7 years 

Bruce

sorry - meant to "casual employees" in my reference to using a spreadsheet

Zappy

And you mean they can take long service leave after seven years? That's interesting. You can accrue for long service leave but it is not customary. When they take long service leave simply code it to the expense account. Of course its taxed normally. And Victoria you are correct of course and the standard has been altered so now casuals accrue LSL as well. https://www.business.vic.gov.au/hiring-and-managing-staff/long-service-leave-victoria/long-service-leave-an-overview

Zappy

Bruce the calculations are quite straightforward. Theres a calculator on the business victoria website here it is: https://www.business.vic.gov.au/hiring-and-managing-staff/long-service-leave-victoria/calculatelongserviceleave  The rate is 1.67% of hours worked (13 weeks over 15 years which is the NES) Thanks for your question

Bruce

Kevin
I have been advised that the calculator you refer only tells part of the story.  Apparently it doesn't address what pay rate to use for casuals and the implicit assumption is that permanent employees have always worked at the same full time equivalent rate.

Based on this advice, I have always accrued long service leave based on hours worked and used excel to determine which pay rate for casual employees

Zappy

Bruce where the legislation is silent you must refer to the modern award. Your question was unclear.