Paid leave and redundancy payments (advised before 19 April 2010) 108-07010090

If a customer is on a non-affected IMP payment, but their partner is IMP affected, the coding is dependent on whether the employment is ongoing or has been terminated.

For employment that has been terminated, code any paid leave on the Income Maintenance Period (IMP) screen, but only on the record of the customer who received the leave payment. This will correctly affect the partner's IMP affected payment, but will have no effect on the customer's non-IMP affected payment.

For employment that is ongoing, the leave paid to a pension recipient is coded on the Other Income (OIN) screen only. This will correctly affect both the customer and their partner. Do not code anything on the IMP screen in this scenario, as it would affect the IMP affected partner twice.

Where the employment is ongoing and the non-IMP affected customer has variable employment income, the variable earnings are recorded as income for one period (IOP) on the Employment Income Details (EANS) screen at the Entitlement Period End Day (EPED). Any amounts of paid leave received are recorded on the OIN screen.

Leave is to be recorded on the OIN screen to correctly affect both the Pension customer and their Allowee partner.

Event Date - Date the customer receives the annual leave payment

Amount - $2000

Freq - '2WE'

Annual leave amount should be set to $0 from the date after the leave payments cease.

Note: using 'IOP' when coding leave on the OIN screen won't always correctly affect a Pension customer's payment (particularly Age Pension customers). It is preferable that leave payments be calculated in either two weekly amounts or annually, for an accurate result, for example, customer receives three weeks annual leave of $3,000 = $2,000 per fortnight or two weekly coded from the date it's received and zeroed out from day 22.

Leave is to be recorded on the IMP screen of the JSP customer's record only.

Date Payt Received - Date the customer receives the sick leave

Type - 'SCK'

No of Days - '5'

Amount - '$500'

Often the employee will continue to receive their usual wage weekly/fortnightly so the amount received and the frequency should reflect this. If a leave loading is received at the same time as recreation leave, this should be added to the recreation leave payment and coded as one amount. This is regardless of whether the employment is ongoing or has been terminated.

If the customer is on leave for only part of the entitlement period, code the paid leave income only for the period of leave, for example, if the customer is earning a continuous amount of $200 per fortnight and was on leave from 3 May to 6 May. (Current entitlement period is 28 April to 11 May):

On the Employment Income Details (EANS) screen

Date: 7 May

Amount: 200

Frequency: 2WE

Date: 3 May

Amount: 0

Frequency:

Date: 28 April

Amount: 200

Frequency: 2WE

On the Other Income (OINS) screen

Date: 7 May

Amount: 0

Frequency: 2WE

Date: 3 May

Amount: 200

Frequency: 2WE

If the customer also received a leave loading or received a different amount to their normal wages, the amounts would need to be adjusted accordingly.

If the customer declares they received $600 for paid leave of 60 hours from 9 March. They usually work for 5 hours every Tuesday, Thursday, Friday and Saturday, work out the number of days using:

60/5 (customer's standard working day) = 12 days

The DOV should be the first day of the leave and the period should be based on actual working days.

Customer normally works 4 days per week so period of leave would be 12/4 = 3 weeks.

Current entitlement period is 6 March to 19 March, the period of leave will be 9 March to 29 March:

On the Employment Income Details (EANS) screen

Date: 30 March

Amount: 400

Frequency: 2WE

Date: 9 March

Amount: 0

Frequency:

Date: 6 March

Amount: 400

Frequency: 2WE

On the Other Income (OINS) screen

Date: 30 March

Amount: 0

Frequency:

Date: 9 March

Amount: 400

Frequency: 2WE

Note: if the customer's income was previously coded as continuing on the Employment Income Details (EANS) screen, make sure that it is set to zero for the period of leave.

If the customer is on leave for only part of the entitlement period code the paid leave income only for the period of leave. Code the variable fortnightly earnings on Employment Income Details (EANS) as income for one period (IOP) on Entitlement Period End Day (EPED). For example, customer's current entitlement period is 2 October 2009 - 15 October 2009. Customer advised he was on long service leave (LSL) leave from 3 October 2009 - 9 October 2009, and received leave payments of $250 and earnings of $300 for the fortnight.

On the Other Income (OINS) screen

Date: 3 October

Amount: 250

Frequency: 1WE

Date: 10 October

Amount: 0

Frequency:

On the EANS screen

Date: 15 October

Amount: 300

Frequency: IOP

In NSW, non-teaching support staff (teacher aides, library assistants or other non-teaching staff), are employees of the NSW Department of Education. As they are unable to work during term breaks, they receive a stand down payment which is based on them meeting certain criteria.

Stand down payments are not, and have never been considered as leave payments for Social Security Purposes. Prior to 20 April 2010 stand down payments were assessed as a remunerative lump sum and held for a 52 week period from the date the customer received it. From the 20 April 2010, these payments are assessed as ordinary employment income earned in the customers entitlement period.

If employment is terminated, see Leave and termination payments paid by an employer.