Long Service Leave Setup

Looking for the procedure to set up LSL.

Wanting to enter the employee's opening balance in weeks/days and have it accrue moving forward so Leave can be taken and show it on the payslip.

I have calculated the opening accrued balance from the Business.vic.gov.au site.

Thanks

Accepted answers

Alison Hart

Hi Shaz,

I have setup my LSL in payroll but would appreciate if you could check my calculations. Second guessing myself today.

I work 15 Hours per week and get paid fortnightly. I have been in this role since 14/02/2013 and calculated my entitlement to be 9.1 weeks.

15x9.1=136.50, 136.50/10=13.65, 13.65/52=.2625, .2625/15-.0175 Hourly Accrual. I Rounded it up to .02 is this correct? or should it be .04 because I get paid Fortnightly?

Thanks so much for you assistance

Ali

All comments

Rav

Hi @Alison Hart

Check out the info in this help guide on handling Long Service Leave in Reckon Accounts linked below -

https://help.reckon.com/article/thkakv6qbs-kba-4842-processing-long-service-leave-in-reckon-accounts

Alison Hart

Hi Rav,

Thank you for your prompt response.

I will follow this procedure.

Acctd4

Hi Alison

The calculation is:

(Employer ordinary FT) Hrs p/wk x No. of wks entitlement = A

A / No. of Yrs Continuous Service Entitlement = B

B / 52 (wks p/yr) = C

C / Hrs p/wk = Hourly Accrual

The info I have is that for VIC (based on a 38-hr wk) this would be:

38 x 6.0667 = 230.5346

230.5346 / 7 = 32.93351

32.93351 / 52 (wks p/yr) = 0.63333

0.63333 / 38 Hrs p/wk = 0.01667 Hrs p/hr

Alison Hart

Thank you so much. This is really helpful

Acctd4

Good to hear @Alison Hart 😊

Alison Hart

Hi Shaz,

I have setup my LSL in payroll but would appreciate if you could check my calculations. Second guessing myself today.

I work 15 Hours per week and get paid fortnightly. I have been in this role since 14/02/2013 and calculated my entitlement to be 9.1 weeks.

15x9.1=136.50, 136.50/10=13.65, 13.65/52=.2625, .2625/15-.0175 Hourly Accrual. I Rounded it up to .02 is this correct? or should it be .04 because I get paid Fortnightly?

Thanks so much for you assistance

Ali

Acctd4

Hi Ali

My previous calcs are for HOURLY accrual so you need to change the Accrual period to Every Hour:

(You're currently only accruing an hour's worth of LSL entitlement for a full fortnight's pay!)

Alison Hart

I have made the change. Thank you.

Also, another question, Sorry.

Part of my wage is a Fringe Benefit (tax exempt) @$550 per fortnight and this shows under Other Payroll Items. This doesn't get picked up and accrued for Leave purposes. Is there a way to pick this up to show on the Leave Liability Report. When I look at the dollar value it is less the $550.00.

Thanks

Ali

Acctd4

Hi Ali

Yes, that's correct - It should show under Other Payroll Items:

A Fringe Benefit Payroll Item should be set up as a Company contribution-type. Is that the Type you've used ?

" ... Is there a way to pick this up to show on the Leave Liability Report ..."

Fringe Benefits aren't related to leave so not sure I'm understanding your question as it shouldn't show up on that report at all! The leave reports only show actual Leave balances & their values (eg Personal/Sick, Annual & Long Service)

" ... When I look at the dollar value it is less the $550.00 ..."

Whereabouts are you seeing this reduced dollar value ? Is it on a Paycheque, YTD or on a report (& if so, which one) ?

Alison Hart

Yes, I have it setup that way.

I am not sure what I meant with the Fringe Benefits either.I was confusing myself.

All good now.

Thanks so much for all your help

Acctd4

Haha ... well it is almost the weekend so totally understandable! 😂

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