To cash out accrued leave, i.e. annual leave, please follow the steps below:
In Wages, process hours for employee’s current pay period, Next.
Select Leave on the left-hand side of Adjustments, Add, ensuring you are in Wizard Mode. The heading of the screen should be Leave Payment Wizard and you should see an Express Mode button in the bottom left-hand side, select Next.
On the Select Leave Type screen, select the Leave Type from the drop-down box, i.e., Annual Leave; you can select any leave type that you need to process.
You now have two STP2 items, Reporting Group = Paid Leave and Reporting Subgroup = C- Cash Out Leave in Service, tick the box Exclude leave hours payment from period overtime calculation, if you do not want the hours to be included in period overtime calculations according to you award conditions.
On the Annual Leave Duration screen, select a date (use the same date for from and to). The date you choose should be a day the employee does not normally work, i.e., a Saturday or Sunday. In Duration, enter 1 day, Next.
On the Annual Leave Pay Rate screen, select the pay rate if the Default Pay Rate is not to be used, Next.
On the Annual Leave Payment Calculation screen, modify the number of hours, Next.
Click Finish.
Click Next to View the employee’s pay slip.
This can either be done in Wages, with normal hours or as a Supplementary pay slip with no hours entered.
The employee's pay slip will show the Leave Type, one date and the total number of hours.
Once you save the pay slip the employee's Annual Leave accrual will decrease by the number of cashed out hours.
Note: The added option of ticking the box to Exclude leave hours payment from period overtime calculation, will only appear when you select Reporting Subgroup C - Cash Out Leave in Service. This option is also available under Employee, Leave, Planned and selecting STP Reporting Tab