Author Lisa Biggs 02/07/2020
Hi Everyone,
I just thought I would share with you some common questions we get about leave loading.
Q – What is leave loading? A – Leave loading is a payment made to certain employees on top of their Annual leave payments.
Q – How do I know if my employees are entitled to Leave Loading? A – Most award-based employees are entitled to leave loading, but to be certain you should check the award in question. Enterprise Bargaining agreements also tend to have them included but again you should check the document.
Q – Is Leave Loading paid out on terminating an employee? A – Yes
Q – Is leave loading paid on Personal Leave and Long Service Leave? A – No
Q – How much is leave Loading? A – Leave loading is either 17.5% leave loading or whatever penalties the employee would have gotten had they worked.
Example: Penny is paid under the clerks award and is taking 38 hours of Annual leave
Her base hourly rate is $20. She would normally have worked one week day afternoon shift 7.6 hrs and a Saturday shift 7.6 hrs and a Sunday shift 7.6 hrs through this period. So you need to work out what were the penalties that she missed out on. Then what is 17.5% of the annual leave amount. Then which of those two is greater. That is the leave loading figure you need to pay.
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At Mount Martha Accountants we are happy to set up your payroll system, train you and your staff on how to use the system or even run your regular payroll process completely.