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AU Payroll - Option for Time off in Lieu (TOIL) to be exempt from superannuation

2 TOIL options, TOIL accrued & TOIL Accrued in place of Overtime

We are unable to mark a Time in Lieu Leave pay item as exempt from accruing SGC, which is not how the ATO classifies SGC for TOIL.

We suggest having 2 TOIL categories, so that there is the option for a TOIL where SGC is required to be paid and one wit SGC exempt:- when super is accrued on overtime.

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Tim Niesler shared this idea  ·   ·  Report…  ·  Admin →
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Gaining Support  ·  AdminSophie Lewis (Admin, Xero) responded  · 

Just a quick update on this XPI. While it's not possible to adjust the TOIL leave pay item to mark it as exempt from SGC as suggested, we can suggest an alternative approach that may assist.

If you use the Cashed Out option when raising a leave request for TOIL, it will be reported as Overtime and SGC not accrue on the leave taken.

Let us know if there are any circumstances where this approach wouldn't be suitable for your situation.

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  • Sarah Ranger commented  ·   ·  Report

    Taken from Xero support - Superannuation (SGC): Cashed out leave is generally considered Ordinary Time Earnings (OTE) in Australia, meaning super must be applied, says Xero Central.

    I tried to do this and it did allocate super on the amount.

  • Sarah Ranger commented  ·   ·  Report

    this is crucial for our business. Adjusting 20 plus employees superannuation accruals each week is a nightmare and has so much potential for error!

  • KJ Hall commented  ·   ·  Report

    Agreed we need an SGC exempt TOIL pay item

  • Danielle Tuck commented  ·   ·  Report

    I have just raised this with Xero, as TOIL is genereally speaking, equivalent to overtime, so therefore should not attract SG, the really helpful response was "we base our leave types on the ATOs recommendation and to vote on this if I think it needs changing". Goodness, what a joke. Who even is in charge of making the decisions relating to accounting software, people without any financial knowledge it would seem.

  • Catalina Almeida commented  ·   ·  Report

    What is the work around for TOIL that is not OTE, and not one of Xero's leave options?

  • Meg Eupene commented  ·   ·  Report

    My team all uses TOIL and I dont want to pay SGC if not required.