What is the accounting standard for long service leave in Australia?
- Accounting for Long Service Leave (LSL) and annual leave1 is outlined in the Australian Accounting Standard AASB 119 Employee Benefits2. Since the previous Treasury Circular (NSW TC14/04) was issued on 19 March 2014, there have been no major changes in AASB 119.
How many weeks of annual leave does an employee get?
- An employee (other than a casual employee) accumulates 4 weeks of paid annual leave for each year of service with the employer. An employee’s entitlement to annual leave accumulates continuously based on the number of ordinary hours they work.
Is annual leave an expense or liability?
- As with other employee benefits, where material, the on-costs associated with annual leave (i.e. payroll tax, workers compensation insurance, LSL and superannuation), are recognised as expenses and liabilities (and revenue, where assumed by the Crown) when employees have rendered related services to the entity.
How much annual leave does a part-time employee accrue?
- a part-time employee engaged to work for 19 hours per week will accrue 5.85 hours of annual leave at the end of each completed 4 week period (1/13 of 76 hours every 4 weeks). If the employee’s nominal hours worked do not vary, the employee will accrue
Under super laws, Super Gtee 9.5% is paid on OTE AND Workers' comp payments made by an employer if the employee is required to work.