Leave payments need to be reported differently in STP2 dependent on the type and reason for taking the leave. These leave categories may change depending on what is happening with the leave in that specific transaction.
You will need to be aware of the options, what each one means, so that you can apply it correctly to the transaction.
In Wages, when entering an employee’s leave, please use the Wizard Mode.
When entering Leave taken, select STP 2 reporting group Paid Leave and then relevant Reporting Subgroup if the leave is Leave taken, Leave cashed out or overtime.
Leave taken – you are paying the employee for 1 weeks leave and they will be away from your business on 1week’s leave. In terms of STP2, this is Other Paid leave type O. Examples might be: annual leave; annual leave loading; long service leave; personal or carer’s leave; RDO paid at ordinary rate; TOIL paid at ordinary rate; compassionate or bereavement leave; study leave; special paid leave; gardening leave.
Leave cashed out – you are paying the employee for 1 weeks leave. They continue to work as normal, therefore the employee has cashed out a week of leave. In terms of STP2, this is Cash Out of leave in service. Paid leave type C.
Overtime – the employee worked 42 hours and 4 hours were “banked” to an accrued day off. If the hours had not been banked, the employee would have been paid overtime for working over 38 hours. When the ADO is paid out, their hours are categorised as overtime.
Leave paid out on Termination - When an employee leaves your business, and you are required to pay out any unused annual leave or other leave entitlements. In terms of STP2 this is unused leave on termination. Paid leave type U. The Wage Easy termination wizard will automatically apply the U to leave paid out as part of this process.
Paid Parental leave is categorised as such. This includes both government paid parental leave and employer paid parental leave.
Ancillary and Defence leave is categorised as such. This includes community service leave including voluntary emergency management i.e. FA,