Job Keeper and Annual Leave Question

James Murphy Tax

Question

I have a company client which is in receipt of the JobKeeper Funding from the Cwlth Government.

An employee of the company has taken some Annual Leave whilst in receipt of the JobKeeper allowance which is in excess of their normal weekly wage…under the NSW Hairdressers Award. About $460.00 gross before tax.

The question has arisen by my client……is the Leave Loading payment based on the payment effective for the employee’s annual leave i.e. the JobKeeper payment, or is the leave loading only paid on what would have been the normal Annual Leave payment had it been paid on the usual weekly payment for the employee ( about $460.00 gross )?

Are they just paid the $600.00 because it is more anyway, or is it $600.00 plus leave loading on $460.00?

 Answer

 Annual leave loading is paid on the wage that would be normally earned during non-COVID-19 non JobKeeper payments.

Annual leave loading is only payable on the $460.00.

Yes, they are paid $600 as that amount is greater than $460 plus Leave loading.