welcome to Evolution Cloud accounting training videos hi I may've your artificial intelligence video educator in today's video we

will show you how to process annual leave cash out through zero but before we step you through this

process it is important for employers to understand the fair work requirements applicable to annual

leave cash at section 93 of the fair work act 2009 stipulates that a modern

award or Enterprise agreement may include the provision for cashing out of paid annual leave upon

request by an employee however such a request can only be approved if it meets all

of the following conditions a cash out annual leave agreement must be made in writing each

time annual leave is cashed out the employee needs to have a balance of at least four weeks of

annual leave after the cash at the payment for the cashed out annual lathe must

be the same as what the employee would be paid if they took llave and finally employees can

only cash out a maximum of two weeks every 12 months in this video the zero Education

team will step you through how to process annual leave cash out using zero let's get started

then the other new button on here is actually a new request and this is where you'll

find normal leave requests and also the cash out leave for request option so we'll look at the cache

doubt leave will process 38 hours for James LeBron so let's select that now what I

do want to mention here is that they are very specific rules around cashing out

leave for an employee so you do need to check the fair work Australia website

be before you determine whether you want to process cash that lead as there are

some rules around it so there's a handy little link that will take you to the

right page on the fair work Australia website but I'm happy that James has met the rules

around cashing out leave so we can proceed now because we are in James's leave tab

he's automatically going to default but if you did this in the payroll and then leave tab

you can select your employee from a drop-down for leave if I click the drop-down what's

it's showing me is that it's showing me the to leave types that the employer has actually

assigned in there leave tab so again if something is not displaying their then you do need to

add it here first so that you can pay it out as part of cashed out lie

so James wants annual leave so I'll choose annual leave as with all leave requests in 0

you do need to enter a description so I'm just going to type in request

to pay out good E8 H we can see James's current leave balance here now one of the rules around

paying out leave is that the employee has to have a certain balance once you pay out that

leave so it makes it easier for you to know what they're currently balance is when you are putting

in the those hours to cash out so James wants 38 he has met all those

rules so I'm happy with that the next field is the date range so that it will

determine when it's going to be paid in the pay run so it all default to

today's date which is the tenth and it's telling me that the next pay period for James is

actually the 49 ending 14th of August if I want to change that date to a different

date and I just click into the box and then I can choose my date here

but we'll leave it for the current pay rent as I'm happy with that and

James wanted it paid in his next pay and we can click approve so now if I scroll down it

is showing in upcoming and it also mentions that it is cashed out leave there's little question mark icon

just to remind you about the date that you choose and when it's going to be

paid in that pay run so that's the first step in cashed out leave putting through the leave request

now we can go and process it in the Pay Run by going to payroll and pay

employees and we already have a draft Pay Run for that same date range so you've

got a couple of options here if you've done lots of work already in this pay rent and you

don't want to read all that work you can just reset James's payslip or if you

haven't done as much work you can reset the whole pay run so to reset the whole Pay Run you

can just click reset parent I'm only going to reset James's paste and there's two

ways you can do it I find the quickest and easiest way for me personally is just

to tick the include button it'll put a strikethrough James's name which is exactly how

you would see it when you do an unscheduled pay run and then if I take that same Circle again

it will include James and that will reset anything that's already been done for this particular

pay run because remember if we create a request and the Pay Run is already created it doesn't

pick up that change so we want to make sure we are capturing that change so now

I'll select James and if I scroll down to the bottom you can reset his

payslip that way as well so there's two ways you can reset a payslip or you

can do the full pay run it just depends on how much work you've done when there is

an existing pay run so if I scroll back up to the top we can see

we've got James's ordinary hours that he has worked and is being paid for we

then have that separate leave line for the annual leave cashed out for 38 hours and then we have that

annual leave leave loading component for the cashed out lead so it's 38 hours at the leave loading rate

and scrolling down depending on obviously how much James is earning we will calculate the p

r YG using schedule 5 and if you just hover over that little I information it will tell you what

schedule 5 is being useful and also so if you want more information that will link

out to the 80s website there so we've got our tax on schedule 5 and then

if I scroll down the superannuation is being calculated on this entire amount here as

James has the checkbox ticked in his taxes tab to have super applied also on SGC on

sorry on the leave learning component of cashed out leave so that's basically it once you've created

the cashed out leave request you then create the pay run that needs to be

paid in and you can review all the details and then when you're happy with everything you can scroll down

to the bottom click save and then you can post and file your pay run to the ATO

thank you for watching if you are watching this video from our YouTube Channel please don't forget

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don't want to yeah we go