What is Leave Loading
Annual leave loading is a rate paid in addition to an employee's base hourly rate when they take annual leave. The annual leave loading will be dependent on your relevant industry award or enterprise agreement.
How do I set this up in Tanda
Tanda has two ways of allocating leave loading:
Leave Loading through the leave rule
Leave Loading through an allowance
1. Leave Loading through the leave rule
This has the loading set up in the leave type. This value will include the standard rate and loading, and is found by going to:
Payroll Settings > Leave Types > [Click on the name of the leave type] > [Scroll to the "Pay rate multiplier" in Section 4].
Or, for the Workforce Management leave type: Time & Attendance > Compliance > Manage Leave Types > [Click on the name of the leave type] > [Scroll to the "Pay rate multiplier" in Section 2].
As an example, a standard for Annual Leave is to include a 17.5% loading on top of an employee's standard base rate. If this is applicable for your staff, include this in the leave type by inputting 1.175x here:
This amount will show as one line on a payslip with the loaded rate incorporated into the “Rate” field. Note here that the employee's base rate is $20, shown in the "Salaried" line, where the Annual Leave leave type has allocated the 1.175x multiplier to the base rate:
If you don't use Tanda Payroll, ensure that the associated leave item in your payroll system reflects the rate entered here.
2. Leave Loading through an allowance
This will allocate loading through an allowance and is useful for splitting loading on payslips, or apply the loaded portion of leave differently to the base.
This is set up to apply the base rate through the leave rule, with an allowance which applies the loaded amount.
Leave rule
💡 Follow the steps in Part 1 of this help article for more details
Allowance
Firstly ensure that there is a leave loading Earnings Rate set up in Tanda Payroll. Below is an example of how this could be set up, found by going to:
Payroll Settings > Earnings Rates > NEW
💡 Ensure the "Settings" are reviewed to fit your business needs
Once configured, set up the allowance. The below screenshots include the necessary steps to apply leave loading for staff on the "Restaurant Industry Award".
Ensure the "Link to Tanda Payroll" and "Who will it apply to?" sections are correctly configured to your scenario. Go to:
Time & Attendance > Compliance > Manage [Next to Allowances] > New Allowance
💡 Note that this is linked to the Earnings Rate set up in the initial step
Under section 8, 'Which shifts will it apply to?', you may need to manually create a new Award Tag for the leave type. This tells the allowance to apply to that leave type.
You can type in the name of the leave type and press Create in section 8b to do so (alternatively, create a tag under Compliance > Classification Tags). Make sure the tag exactly matches the name of the leave type (case sensitive).
Once created, this applies as two lines on the payslip. A 1.0x multiplier as leave, and a 0.175x multiplier as loading:
💡 These amounts will also be allocated to cashed out leave/ leave on termination, and on your Tanda Payroll leave reports.
FAQs
I've updated to the Allowance process for leave loading, and now I'm seeing a "Adjustment to existing balance due to change in accrual rate" line in the journal. Why?
I've updated to the Allowance process for leave loading, and now I'm seeing a "Adjustment to existing balance due to change in accrual rate" line in the journal. Why?
Tanda Payroll journals will include this "Adjustment to existing balance due to change in accrual rate" line when an employee's leave accrual has updated. This accrual is calculated as "Base Rate * Leave Pay Rate", meaning a change in either value will show this line. In this case, the "Leave Pay Rate" has increased (for example, increasing from 1.0x to 1.175x with a 0.175x allowance).