Loading
Thornbill(Newbie)Newbie
11 Mar 2025

Seeking confirmation that if a continuing employee requests to 'cash out' a portion of their accrued annual leave, the tax withheld is based on the Tax table for back payments, commissions, bonuses and similar payments. The amount being cashed out is 10 days, which is equivalent to one pay period.


My employer has used the fortnightly tax table on the total remuneration for that pay period.


If my understanding is correct, how can this be officially conveyed to my employer?


3,983 views
3 replies
3,983 views
3 replies

Most helpful response

All replies

Most helpful reply

YellowPotato(Taxicorn)Taxicorn
11 Mar 2025

I don't think so. I think thats for unused leave i.e. when you resign or redundant.


I think for you it would just be the fortnightly PAYG withholding on the leave amount.

https://www.ato.gov.au/businesses-and-organisations/hiring-and-paying-your-workers/payg-withholding/payments-you-need-to-withhold-from/payments-to-employees/withholding-from-leave-payments-for-continuing-employees

Thornbill(Newbie)Newbie
11 Mar 2025

The link you have posted is for advance payments. Like, paying someone for all of the time they will be on leave before they have started that leave. The situation I am referring to is payment for unused leave. Our EA refers to it as 'cashing out' annual leave.

Loading
Tax on cashed out annual leave - continuing employee | ATO Community