Annual Leave Payout

Redline Member Posts: 2

I am setting up a new payroll item for when people resign, voluntary or non-voluntary and receive their final pay with any un-used Annual Leave.

I have called it Annual Leave Payout, this is not including super (so it is different to our normal holiday wages)

I'm confused about the Tax. I thought post 1983 it is now just gross wages and or should I still use the following;

Thank you


  • Acctd4
    Acctd4 Accredited Partner Posts: 3,169 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert

    Hi Redline

    That's correct - The majority of ordinary terminations/resignations all form part of normal Gross Payments (Note: This is broken down further in STP Phase 2 which will be released for RA/RAH in the next few months)

    Lump Sum payments are only applicable in specific circumstances, generally for:

    • Employees who've been employed with you for a very long time (eg at least 30 years!)
    • Back payments over $ 1,200 (accrued 12 months ago or more)
    • Redundancy payouts

    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

    [email protected]

    (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!)
  • Redline
    Redline Member Posts: 2

    Thank you for your response :)