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PayrollLead(Initiate)Initiate
30 Apr 2026

Hi,


We have a group of employees who have already received their leave payouts on termination.


Since processing these payments, we’ve identified that the hourly rate used to calculate both annual leave and long service leave was understated, resulting in a shortfall.


Could you please advise how these shortfall payments should be processed in the payroll system, including the correct coding and reporting requirements for STP2?

42 views
1 replies
42 views
1 replies

All replies

PayrollDeanne(Taxicorn)Taxicorn
1 May 2026

G'day @PayrollLead 👋


The additional amounts are treated for tax, super and reporting as per the original payment. It's just a bit more of the same.


Seek assistance from your payroll product provider about how to do this in their product 😉


Deanne

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How should underpaid leave payouts after termination be corrected and reported in STP2? | ATO Community