Cashing out annual leave means an employee receives payment instead of taking time off work.
Step 1 - Mark Leave to be cashed out
Navigate to Time & Attendance > Compliance > Manage Leave Types and click on the leave type you wish to cash out. Tick the “Can be cashed out” checkbox and save.
Step 2 - Apply the leave amount to an employee's payslip
To apply the cashed-out leave amount, navigate to the employee's payslip.
In the Cashed Out Leave section, click '+ ADD'
Enter the leave balance hours to be cashed out.
If this is the entire balance, this should be the employee's current balance + any leave they have accrued in this pay run (see Leave Accrued section on payslip)
If this is part of the balance, simply enter the number of hours that the employee is cashing out.
FAQs
Why isn't tax being calculated properly when cashing out leave, and how can I ensure it's applied correctly?
Why isn't tax being calculated properly when cashing out leave, and how can I ensure it's applied correctly?
When cashing out leave, tax may not be calculated if the cashed-out leave is not processed with the regular salary and wages. Tanda uses the Schedule 5 Tax Table for such calculations, which assumes these payments are part of a standard in-cycle payslip.
To ensure tax is applied:
Configure the following tax field in the payslip correctly after adding the cashed-out leave:
Manually add PAYG adjustments to the payslip by clicking "ADD" next to the Tax section.