Leave loading is an additional payment made to employees when they take annual leave. It is usually calculated as a percentage of the employee's base rate of pay and can be a valuable benefit for employees. If you use Xero for your accounting needs, you can easily set up and manage leave loading payments for your employees. In this article, we will guide you through the steps to do leave loading in Xero.
Step 1: Set Up Leave Loading in Xero
The first step is to set up leave loading in Xero. To do this, go to "Payroll Settings" and select "Leave." Then click on "Add Leave Type" and select "Leave Loading" from the drop-down menu. Enter the details of the leave loading payment, including the percentage rate and the payment frequency.
Step 2: Assign Leave Loading to Employees
Once you have set up leave loading in Xero, you need to assign it to your employees. To do this, go to the "Employee" tab and select the employee you want to assign leave loading to. Click on "Leave Requests" and select "New Request." Then select "Leave Loading" from the leave type drop-down menu and enter the details of the payment.
Step 3: Run a Payroll with Leave Loading
After assigning leave loading to your employees, you can run a payroll with the leave loading payment. To do this, go to "Payroll" and select "Pay Runs." Then select the pay period you want to run and click on "Create Pay Run." Follow the on-screen prompts to enter the necessary information, including the leave loading payment.
By following these steps, you can easily set up and manage leave loading payments for your employees in Xero. Leave loading can be a valuable benefit for your employees and can help increase their satisfaction and loyalty to your company.
In conclusion, doing leave loading in Xero is a simple process that can help you manage your accounting more efficiently. By following the steps outlined above, you can easily set up leave loading payments for your employees and run payrolls with the payment included.