The Leave liability report shows the estimated leave owing for each employee at a specific date and its dollar value. Run the report via the Reporting menu > Reports > Payroll tab > Leave liability.
You can use this report to check what's owed to employees who are leaving, or to see your company’s total leave liability.
How the values are calculated
The values in this report take into account pays you've recorded where the Pay period end date is on or before the report date. So entering a future date doesn't forecast leave balances.
Annual holidays rate – calculated using the greater of an employee's ordinary weekly pay (OWP) or average weekly earnings (AWE). For this report, OWP is calculated using the 4 weeks OWP formula. More about OWP and AWE
Holiday pay – calculated as 8% of an employee’s gross earnings for their current entitlement year (based on the report date), including any annual and alternative holidays owed. If the annual holiday balance is negative, the amount paid in advance is deducted from holiday pay.
Alt holidays due – alternative holidays are calculated using the employee's average daily pay (ADP) for the last 52 weeks. When paid, this might be at the relevant daily pay (RDP) rate. More about ADP and RDP
Examples
Annual holiday balance is positive
Gross earnings from last anniversary until report date = $30,000
Annual holidays due (weeks) = 1.00
Annual holidays due ($) = $2500.00
Alternative holidays (Days) = 2
Alternative holidays ($) = $1000.00
Total taxable gross to calculate holiday pay 8% = $30,000 + $2500 + $1000 = $33,500
Holiday pay due ($) = $33,500 x 8% = $2680.00
Annual holiday balance is negative (paid in advance)
Gross earnings from last anniversary until report date = $40,000
Annual holidays due (weeks) = -1
Leave paid in advance ($) = $1,000
Total taxable gross to calculate 8% holiday pay = $40,000
Holiday pay = ($40,000 x 8%) - $1000 = $3,200 - $1,000 = $2,200
