Identifies the amount of Leave Liability at the Fiscal Year End
The 63 Day Tax Adjustment Report is designed to assist organisations to calculate the amount of their annual leave liability as recorded at their financial year end, less annual leave which has been taken or paid out within the 63 day allowable period after their financial year end. This calculation also assists organisations to determine the portion of their annual leave liability which can be treated as an allowable tax deduction for the purpose of their income tax return.
It is important to note that this report is designed to be a source document for the overall 63 day tax adjustment calculation. The technical parameters used to generate this report include certain assumptions which, while generally accepted, may not apply to every organisation or in all cases. For this reason iPayroll does not guarantee this report to be 100% accurate in every case and organisations using this report should perform their own review of the calculation to ensure its completeness and accuracy.
- This report will only show employees who were "active" as at the year end date selected for the report.
- Any employees who have finished employment between the year end date and the end of the 63 day period will be shown in the finish date column. For these employees their total leave liability at the year end will be shown in the tax deductible leave liability column.
- The projected leave shown in hours and dollars is a estimate of the leave accrued between the last paid to date and the year end date selected.
- The calculated hourly rate figure is the leave liability at year end in dollars divided by the leave liability at year end in hours. This has been used for calculating the dollar value of the total hours taken during the 63 day period.
- Where an employee has taken more leave hours during the 63 day period than what was recorded at the financial year end, the total hours taken column will only include the hours recorded at the financial year end.
- Annual leave in payrolls to be incorporated in the 63 day allowable period must have been processed and then "closed" by iPayroll to be included in the report.