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 Payroll
Tanda Payroll 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]
As an example, a standard for Annual Leave is to include a 17.5% loading on top of 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:
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 "All 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
💡 The "Include" should include the "Leave Rule" this allowance should apply to (in this case "Annual Leave"). Once input, the allowance will apply when that leave type is taken.
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.