Calculating Annual Leave Marginal Tax and Lump Sum A—Hours

The calculation rule for both AL MARGINAL and AL LUMP A is Unit × Rate, where:

Unit = TER FM AL BAL HRS

Rate = TER FM HOURLY RATE

The unit formula sums accumulators ANN ENTHRS_BAL and ANN ENTHPH_BAL.

Generation controls attached to each earning determine which of the two earnings to use to pay the hours.

For Annual Leave Marginal (hours), generation control TER GC TERM NORMAL uses TER FM NORM TERM to determine if the employee's status is Retired with Pay, Retired, Terminated, or Terminated with Pay. If it is and the action reason is not Staff Reduction, Early Retirement or Partial or Total Disability, then the system pays the hours value as AL MARGINAL.

For Lump Sum A, generation control TER GC TERM REDUN uses TER FM REDUN TERM to determine if the employee's status is Retired with Pay, Retired, Terminated, or Terminated with Pay. If it is and the action reason is Staff Reduction, Early Retirement, or Partial or Total Disability, then the system pays the hours value as AL LUMP A.

Note:

The system does not provide for annual leave accrued prior to 1993, so the payout for annual leave on resignation, retirement, or dismissal is all to AL MARGINAL and is taxed at the marginal rate.