Annual Leave 8% Payout Query

Question:

 

We have a query on the 8% payout of gross earnings for annual leave for the period since an employee’s anniversary date.

 

How are the earnings determined when the anniversary date falls part way through a pay period?

Do we somehow pro-rata the earnings for that period?

 

We had a recent case where the anniversary date is the 18/5/2010 and the pay period end for the wages (fortnightly) was 18/5/2010. (Employee terminating on the 25/6/2010). What earnings from  pay period 18/5/2010 would be included in the total? (Employee earns $1,846.15 per fortnight)

 

Answer:

 

If an anniversary date falls in a pay period then you will need to pro- rata it.

ePayroll FREE Weekly Newsletter

Payroll News, Tips and Advice Delivered FREE to your inbox. Privacy Statement: your email address will never be revealed to third parties.
Click here to access the ePayroll Archive