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Employee Leaving or Terminated – Unused Leave

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When an employee’s employment is finished or terminated, the tax on their unused leave is calculated differently to that of their ‘normal gross earnings’. 

Also, unused annual leave is different to other payments which are grouped as ETP’s – Eligible Termination Payments. ETP’s include payment for unused rostered days off, payment in lieu of notice (eg serious conduct dismissal), bona fide redundancy (position will not be available any more) and more.


MYOB  support notes have a great explanation of the components of leave, ETP’s, calculating the PAYG tax and seperating the tax-free portion in leave loading, and how to enter the final transaction. See!!&p_li=&p_topview=1.


Quickbooks/Quicken/Reckon have a short support note on entering the transaction. See


Author: Account keeping plus (Business accounting software

Administration, Bookkeeping and Compliance for small business, and Self-Managed Super Funds (SMSF) Training, trouble-shooting, or we can do the books and payroll for you! Self Managed Superannuation Fund Service Provider, Free support 30 min call 0407 361 596 Australia (+61 drop 0 from overseas) MYOB Certified Consultant, Reckon/QuickBooks Professional Partner.

One thought on “Employee Leaving or Terminated – Unused Leave

  1. Pingback: MYOB – Quickbooks – Tax Threshold and Leave Loading – which do I use? « Accountkeepingplus – Admin Bookkeeping and Compliance News & Tips

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