Cash out all leave/Partial Cash out entitlements (not for a termination)

There may be a situation where you might need to cash out leave entitlements for an employee, such as:

  • Annual leave
  • Other type of leave specific to your business e.g. sick leave/carer leave.

Note: if you are cashing out long service leave* or other leave entitlements as part of a termination please see Termination payments.

* According to Fair Work- Long Service leave usually can't be cashed out while the employee is still working for the business.

To cash out all leave entitlements (not for a termination)

An example could be:

  • Cashing out all annual leave 

To Redeem leave in payslip via Redeem: Cash out all option

1. In the quick menu navigate to Payroll > Pay.

2. Under Draft Payslips, select the relevant Period Ending. Type in the employee's name in Search.

3. Click Action, Edit next to the employee.

(If the employee does not currently have a paycycle click 'Create New Payslip' and create the employee payslip from scratch)

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4. Edit the hourly totals as relevant for their last pay if needed. 

5. In the Pay Items select from the drop down Redeem for Annual leave select Redeem: Cashout all. This will cash out the full leave type e.g. Annual leave

6. Scroll to the bottom and click on calculate totals to update the payslip with the changes made.

7. Then Preview Payslip. Under the Entitlements paid section there will be a section with the leave type e.g. Annual leave, the hours accrued and the amount.

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8. Select Update Payslip

To Redeem leave (partially cash out or pro-rata payment of leave entitlements)

To cash out partial leave entitlements (not for a termination)

An example could be:

  • Partial Cashing out i.e. 1 week of 5 weeks available annual leave service leave (leaving 4 weeks).

In Edit Payslip Pay Items, you're able to select Annual Leave: Redeem options and then  cash out the numbers of hours that you would like to pay that employee. See our Edit Payslips article for more details.

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