Marlin HR includes special allowance types for handing pre-1993 leave payouts.
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Leave payouts accrued before 18/8/1993 August 1993 is taxed and reported differently in the STP submission to the ATO.
If an employee has any unused Annual Leave or Long Service Leave accrued before August 1993, it needs to be removed from their current leave balances before processing the termination pay run.
For more information, please refer to the ATO website.
For expert guidance, please consult the ATO, Fair Work Ombudsman, your employer association or a qualified tax accountant about:
- Employee payments (types and amounts)
- Tax withholding requirements
- STP codes for ATO submissions
Quick Reference
Removing Pre-1993 Balances
Before beginning a termination pay run:
- Any pre-18/8/1993 need to be removed using a leave balance adjustment
go into Leave Entry and perform a Leave Balance Adjustment to remove the hours accrued prior to 18/8/1993 from the current leave balance.
This must be done before accessing the employee's termination pay run Options window, to ensure it displays only the post-18/08/1993 unused leave balance and that the pre-18/08/1993 balance is not included as part of the automatically calculated leave payout.
The pre-18/8/1993 balance the needs to be manually aded to the termination pay run as a before tax allowance.
Since Marlin HR was not developed until after 1993, you may need to refer to your previous system or reports to determine whether an employee has any relevant accruals.
If the employee’s unused leave balance as of 18/08/1993 exceeds the total leave taken since that date, then the pre-18/08/1993 accrual is equal to the difference between the two figures.
Paying Out Pre-1993 Balances
Any pre-post-18/08/1993 leave balances must be removed before beginning the termination pay run, otherwise they will be incorrectly included as part of the automatically calculated leave payout.
Before initialising the termination pay run:
- Click on the employee's Options button
- Tick the checkboxes for the unused leave payouts, as usual.
Once initialised, the remaining post-18/08/1993 leave payouts will be automatically taxed, according to the termination type, as usual.
The removed pre-18/8/1993 accruals then need to be manually added as a before tax allowance.
To add any pre-18/8/1993 accruals:
- Click in the This column of the Before Tax Allowance field
- Click on the Add button below
- Select the appropriate allowance type
(eg. Unused A/L accrued pre 18/8/1993 or Unused LSL accrued pre 18/8/1993) - Enter the amounts for each, as required
Note: The amount will be the number of unused pre-18/8/1993 hours multiplied by the employee's current pay rate.
If necessary, repeat this process for any outstanding pre-18/8/1993 long service leave as well.
Pre-1993 Leave Allowance Types
The allowance types for pre-18/8/1993 unused leave payouts are shown below.
If you don't see these in your Allowances list:
- Select System > Allowances from the menu bar
- Click on the Update icon to refresh the Megabus-provided allowance types
does this work, or do they have to add them?
