To setup and pay Long Service Leave Cash Out, first set up an Allowance code as follows:
Setups, Payroll, Allowance, Maintain.
Create a code eg, LSL CASH.
Enter a Description eg, LSL Cash Out.
Type: select VALUE.
Tax Status Before Tax.
Tick Include in OTE.
Tax Certificate Code is C = Leave Cash Out.
Tick Include in SG Threshold.
📌Note: An Allowance will not reduce the long service leave balance. This will have to be done manually.
To pay out Long Service Cash Out in a timesheet:
Go to Create/Modify Timesheets.
Select the Employee Code.
Start the pay as required.
Consider if you need to change the Tax periods on the first screen. (Use this option if the hours exceed the number of hours normally paid in one pay period ie if you are paying two periods worth use 2 tax Periods.This will reduce the tax for the whole pay).
Accept (F9).
Select the Allowance line type.
Enter the LSL CASH code.
Enter the required value.
Complete the timesheet as required and process as normal.
The leave balance should then be modified manually in the Masterfile on the Leave page by overriding the balance and leaving a meaningful comment.
🤓Tip: The Long Service Leave Cash Out amount will show in the Paid Leave tab in the Income Statement report in Single Touch Payroll, under the heading Cash Out Leave in Service.
