This guide explains how to create leave types, each leave type setting, and how to edit/delete leave types when using Tanda Payroll. It also covers how certain leave types can be configured (such as Parental Leave or Family and Domestic Violence Leave).
To learn how to configure leave types without Tanda Payroll enabled, please see this guide instead.
What this help guide covers:
Creating New Leave Types
To create a new Leave Type, go to Payroll > Payroll Settings > Leave Types and click + New.
You can then configure the name, how it's reported, and any other settings. These are explained below.
Configuring Leave Settings
Basic Leave Details
After creating the leave type, enter the following details:
Name: The name of the leave type itself. How it will appear in payslips, reports, profiles, etc.
STP category: How it will be reported to the ATO.
Expense Account (optional): Where leave taken will be allocated in the payroll journal. If an account is not chosen, the organisation defaults will be used instead.
Liability Account (optional): Where leave accrued will be allocated in the payroll journal.
Payroll Settings
Under Payroll Settings, choose the leave type behaviour on payslips:
Accrues leave when taken: Leave can accrue on this leave type when taken (as if they were ordinary hours worked).
Incurs super: Super will be paid when this leave type is taken.
Qualifying earnings: Determine if this leave should be used to calculate the super guarantee when taken. Learn more about qualifying earnings here.
Incurs payroll tax: Determines if tax should be paid when this leave type is taken.
Unused leave balance is paid out on termination: Leave balances can be paid out in an employee's final payslip.
Can be cashed out: Balances can be cashed out at any time on an employee's payslip.
Payment Rate
Payroll Leave Types can be paid as a multiplier of the employee's normal pay rate, or
as a fixed amount.
Multiplier (default): Use the employee's hourly rate, multiplied by the multiplier rate set in the leave rule below. Most leave types use the multiplier rate basis.
Fixed: Set a specific amount to pay staff, regardless of how much they usually earn.
Per Hour
Per Day
Per Week
Fixed rates are typically used for leave types like paid parental leave and WorkCover. Choosing a fixed rate lets you set your own rate manually or use Tanda's automated Services Australia Parental Leave Pay rate. The automated parental leave rate is kept up to date in Tanda when changed by Services Australia.
Note: Leave types with a fixed rate must be exported from an approved leave request to payroll. They cannot be manually added to payslips.
Advanced Settings
Automatically approve this type of leave request: New requests for this leave type will be automatically approved 10 minutes after creation. Will not require manager approval.
Hide leave balance from employee for this leave type: Staff will not see their leave balance for this leave type on their payslips or in the app.
Prevent leave requests for this leave type: Employees will not be able to create requests for this leave type.
This leave type is for TOIL (Time Off In Lieu): Connects this leave type to the Tanda-managed TOIL award rules in certain managed award templates.
Disguise this leave type on employee payslips: Leave taken of this type will appear in the payslip sent to the employee as "Ordinary Hours" and no leave balance will be displayed. This is typically used to disguise Family and Domestic Violence Leave.
Prevent leave balances from falling below 0: Block creating leave requests that would cause the balance to go below 0. Can be overridden by admins and managers.
Leave Rules
Description: Add a name for the leave rule. This is the leave name that staff will see on the balance in their app, and on payslips. This name does not need to match that of the Leave Type.
Award Template: Set if the leave type should apply to staff under a specific award template.
Pay rate multiplier: If the rate basis above is set as Multiplier, enter the multiplier amount here. A 1x multiplier will pay the employee their regular rate.
Leave accrual rate: Specify how many hours of this leave type should be accrued for each ordinary hour worked. For example, an accrual rate of 0.076923 per hour will result in 4 weeks of leave accrual in an ordinary 52-week period. Leave will not accrue on non-ordinary hours.
Type of hours: Should leave taken for this leave type be ordinary or non-ordinary.
Don't send this leave to payroll: If ticked, leave taken for this leave type will not export to payroll. This leave type will also not accrue in payslips if this setting is ticked.
Does not count as hours towards overtime rules: For overtime rules that apply based on a number of hours worked, tick this setting to exclude leave taken from the total hours worked (to prevent leave taken from triggering the overtime rule).
Leave applies to: Configure who the leave type should and should not apply to. This influences which staff can accrue and take the leave type.
Fallback leave: With the Prevent negative leave balances setting ticked, choose a leave type that requests can 'fall back' on. If an employee creates a request without a sufficient balance, the request can split so that is uses their remaining balance, with the rest going to the Fallback Leave leave type.
Leave applies on: Choose specific days for the request to apply. If Public Holidays or Every Day (incl. Public Holidays) is ticked, you can also configure it to Automatically apply this leave type on public holidays.
If this leave type should accrue differently for different staff, add a new Leave Rule by clicking "+ ADD RULE" and configuring the steps above:
Editing/Deleting Leave Types
To edit a leave type, navigate to Payroll > Payroll Settings > Leave Types, and click the leave type name to open it. Make any changes to the leave type and then click Save at the bottom of the page.
Leave types and leave rules can only be deleted if they have never had a balance attributed to them.
Delete a leave type from the Leave Types page by clicking Delete:
The leave type will display Leave type is in use if there are balances for it.
FAQs/Troubleshooting
Why is a leave type not accruing on employee payslips?
Why is a leave type not accruing on employee payslips?
There are a few things to check which could be preventing the leave type from accruing in employee payslips:
Ensure the Don't send this leave to payroll setting is unticked in the leave rule. This setting prevents both leave taken from being exported to payroll, and the leave type from accruing in payslips.
Check that the Award Template field in the leave rule matches that of the employee.
Check the Leave applies to section; ensure that the pay conditions of the employee match the condition in the Who will the leave rule apply to? field, or that the pay conditions do not match that of the Who should the leave rule not apply to?
Check the type of hours that are present in the payslip. Leave will not accrue on non-ordinary hours or on leave hours that aren't configured to Accrue leave when taken.
How do I set up Family and Domestic Violence Leave so it's hidden from employees?
How do I set up Family and Domestic Violence Leave so it's hidden from employees?
Enable Disguise this leave type on employee payslips under Advanced Settings. Leave will still need to be entered in the Leave Taken section when creating the payslip, but will appear as "Ordinary Hours" on the employee's payslip emailed to them and in the mobile app, and no balance will be displayed.
