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MYOB/Quickbooks – Employee Leaving or Terminated – Unused Leave
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Published on Thursday, 23 May 2013 13:27
If an employee’s employment has finished or terminated, the tax on their unused leave is calculated differently to that of their ‘normal gross earnings’.
Also, unused annual leave is different to other payments which are grouped as ETP’s – Eligible Termination Payments. ETP’s include payment for unused rostered days off, payment in lieu of notice (eg serious conduct dismissal), bona fide redundancy (position will not be available any more) and more.
MYOB support notes have a great explanation of the components of leave, ETP’s, calculating the PAYG tax and separating the tax-free portion in leave loading, and how to enter the final transaction. See HERE
Quickbooks/Quicken/Reckon have a short support note on entering the transaction. See HERE
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