Time Off In Lieu with STP2

Time Off In Lieu with STP2

Single Touch Payroll Phase 2 (STP2) introduces two types of Time Off In Lieu (TOIL):
  1. Hours taken (Leave Type O)
  2. Hours cashed out (Overtime)
These hours are accumulated when an employee works more hours in a day/week than their employment conditions stipulate.

Once there are extra hours worked, the employee can either:

1. Take time off and still get paid in an agreement with employer that is:
  • Hour for Hour: the employee worked 2 hours extra, so gets paid for 2 hours.
  • Hours plus Penalty: the employee worked 2 hours extra at ‘time and a half’, so gets paid for 3 hours.2.
2. Cash in the value of the hours in an agreement with employer that is:
  • Hour for Hour: the employee worked 2 hours extra so gets paid 2 hours
  • Hours plus Penalty: the employee worked 2 hours extra at ‘time and a half’, so gets paid for 3 hours.
Please note: Time Off In Lieu can only happen if the employee is in a Modern Award or Enterprise Agreement.
 

Recording Time Off In Lieu

To record Time Off In Lieu there is a new tab in the Other Payments section called Overtime Time Off In Lieu when processing a single pay.
 











Once you have entered the amount, you can choose from the two options below. 
  • Choosing Hours Taken will classify the leave as Other Leave (Leave Type ‘O’ for STP2).
  • Choosing Hours Cashed Out will classify the payment as Overtime for STP2.

Once recorded, Time off in Lieu will appear in several places in Cashflow Manager, including: 
  • The Pay Summary screen for new and existing pays
  • The Pay Advice Report
  • The Payroll Categories Detailed report
  • The Combined Payroll report
  • The Combined Payroll drilldown report
    • Clicking the Time off in Lieu amount will produce a ‘Time off in Lieu Detailed Report’
  • the ‘Combined Payroll’ drilldown report