Long Service Leave entering into Reckon Accounts Hosted
We have several employees who have been with our office for numerous years (we are in Qld) and I am needing help to add long service leave into Reckon Account Hosted. I have renamed one of the other leave names as Long Service Leave and have also set up a payroll item called Long Service Leave. I am assuming I need to calculate their amount of annual leave balance and enter this into the computer and then have it calculate LSL on their hours they work each week (hours calculation: 0.01538 per hours worked). Is this correct?
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Long service leave is 1/60 hours worked or 0.0166667 %. I don't know where you're getting your figures. It's 13 weeks after 15 years. Call me if you need help 0407744914
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We are in Queensland. I am getting this information straight from the Business Queensland Website. 8.66667 weeks for a period of 10 years continuous service. One employee's 15 year service does not start until 25/06/2022.
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8.66667 / 520 = 0.01666666 so your math is wrong. Call me if you wish to discuss.
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Thankyou, the original hourly rate I was quoting was from an article released by Reckon several years ago. Thankyou for your advice.
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The hourly rate is as per each employee, I’m sure that’s what you meant
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Kris I wouldn't be sure. The percentage is the same regardless. Nothing to do with "rates". PLMRE it hasn't changed since the NES came in decades ago. It is actually on the small business site in Queensland. I rang my accountant sister in Queensland just to be sure. She found it in less than a minute. I don't know what you were looking at. If I sound like I'm laboring the point it's because I've been doing this for over 20 years. I'm on very firm ground here. Id be interested in looking at this reckon article if you could post a link. Please and thank you
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But when you calculate the LSL it’s calculated on the individual’s current rate of pay. It’s still the same 8.666 weeks - that’s what I was saying
Long service leave is paid at the ordinary rate (i.e. excluding overtime payments) being paid to the employee at the time of taking the leave. If an employee is paid above the award rate, the long service leave is to be paid at the higher rate.
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Kris except that's not true is it. It depends on whether you are full or part time. And whether your hours have stayed the same. It's not at all straightforward except the accrual basis.
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Of course it’s not straightforward, I was referring to a standard full time employee
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Kevin. I refer to your post at 5:13 pm wherein you stated that "Long service leave is 1/60 hours worked or 0.0166667 %". Please clarify the accuracy of that because I do not believe that the % sign should have appeared. If you talk in percentage terms, then 1/60th is actually 1.66667%.
John L G
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Thanks JG. I feel like an idiot. Also do you know where the OP got that info? Is it in the documentation somewhere?
Have an awesome day
Kr
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Kevin. Its called a typographical error and some can have more impact than others! We are all human. I have no idea where that figure of 0.01538 could have come from. By doing some mathematical calculations it seems that basically this represents almost exactly 1 week of LSL after 65 weeks of service and this in turn is almost exactly 12 weeks of LSL after 15 years of service. As to where that could have come from is a mystery, without PLMRE being able to share the documentation with us all.
Overall, I am very pleased to have seen this issue raised because I became aware of a slight imperfection in my calculation method. Up to now I had seen the "alternative" method of calculation as being .86667 weeks per year, but that is not exactly the same as 1 week for each 60 weeks of work. Your statement that the accrual rate is 1/60th is therefore spot on and is what I am using from now on.
John L G
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Thankyou for everyone's comment. I have attached the original document I had which was from Reckon - maybe I have totally misread the information on the document. See highlighted page.
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Source of the 0.01538 value is the Reckon document that PLMRE loaded. Don't know how old it is but the document talks about employees generally being entitled to 8 weeks LSL for every year of service. I've never heard of this (although my clients are exclusively Victorian) so perhaps there was something different in NSW.
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As previously advised I am in Qld - I have also attached the document straight from Business Qld website.
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The NES overrides Queensland law.
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@Zappy - NES do not automatically override state law. The NES is just a set of minimum standards, nothing to stop individual awards or States individually prescribing something more generous
@PLMRE - the document you have loaded confirms that Queensland operates at 13 weeks after 15 years. This means that you should be be accruing as described above and that the Reckon advice you loaded does not apply to you
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In "general" terms, LSL is 8.67 weeks for every 10 years of service, except for SA and NT where it is 1.3 weeks per year. There are slight variations for the ACT and Tasmania. You can find reference to this at:
Clearly the Reckon/Quickbooks document is long outdated and particularly as it dates back to Quickbooks days which is some years ago now. Not only that, but just take a look at the disclaimer at the top of page 1, which states inter alia "...we can't promise that the information set out below is totally error free..." That would have to be the understatement of the year!
Rav or PLMRE - is this document still accessible today?
John L G
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I do not believe this document is still available today. It was an article I had saved a while ago for future reference. I will however follow any instructions provided by our accountant.
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My mathematics is still correct.
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I have never seen this alleged document. I've only been using QB / Reckon since 1999. Reckon are not the appropriate authority for long service leave. You need to check these things periodically. Your "accountant" doesn't know this stuff. It's not his job. Fair work or the relevant state tribunal is your first port of call
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Thankyou for your advice. :)
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@Bruce No one mentioned anything about the states prescribing anything more generous. The NES is called the minimum standard because that's what it is. Awards can vary this but the OP never mentioned any award or contract or enterprise agreement. It still doesn't alter what I said.
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