Long Service Leave accrual for casual employees in NSW

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I am trying to enter in accrued long service leave for a casual employee who has been with us for 9 years. We use Reckon Accounts Hosted and we are based in NSW. The NSW industrial relations website says that LSL should be accrued for casual employees by using the average hours worked per week (calculated using the higher of the previous 12 months or the previous 5 years). I am having a lot of trouble figuring out how to set this up in Reckon. Should I just do the calculations outside of Reckon and enter the accrual in manually?
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Kathy Komadina

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Posted 11 months ago

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Linda Putland, Accredited Partner

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Hi Kathy - with part time and casual employees it is very hard to have a set accrual in the payroll - and even if you did it - I wouldnt recommend putting it on their payslips as its a bit of a moving feast... the averaging you are talking about applies to the previous period of time when they actually leave, and since you dont know when they are going to leave until they actually do - then any calculation you do is likely to be incorrect.  so I would keep some records outside of Reckon and maybe update it once per annum if it needs to go on the Bal Sheet - but it will always be a rubbery number until it is actually time to pay it...  It is much easier to calculate for full time workers or for workers whose hours never change from week to week.  Hope this helps?
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Kathy Komadina

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Thanks so much for your reply Linda! That is exactly what I was thinking and it helps to know that you think the same way. I will calculate it outside Reckon at the end of each financial year and just journal it into the balance sheet. Thank you!