Question

On July 2020, Sotoma Pty Ltd noticed that a number of its employees have been with the company for a number of years including some who have actually been working for more than 10 years. The company has always provided annual leave and sick leave to its employees. However, our accounting team is not sure whether these employees are entitled to any other employee benefits. It would be much appreciated if you could give the accounting team some clarification on this matter and how to deal with this in our accounts.

Answer 1

SOLUTION

Sotoma pty ltd is always providing annual leave and sick leave to employees.Sotoma pty ltd can also give some other important benefits to its employees.The accounting team of sotoma pty ltd can take following benefits into their considration for providing to their employees.

PARENTAL LEAVE

Parental leave is something which employee gets from their company.Its a type of unpaid parental leaves which a employee get when the new child is born or adopted.Parental leave includes.

• Adoption leave for both parent who adopted the child.
• Maternity leave for the mother's.
• Paternity leave for father's.

The employees of sotoma pty ltd should get paid parental leave and accounting team of sotoma pty ltd take this into consideration.

SUPER ANNUATION

This is the money which is kept aside during the working life of an employee.This money is assurance to an employee that they have this amount after their retirement.As per law the sotoma pty ltd should provide 9% of their ordinary earning in super annuation funds as they are assurance of the employees after their retiement.And accounting team of sotoma pty ltd should take this into consideration for their employees.

LONG SERVICE LEAVE

These are the paid leave which is paid and this is given to the employees who are working for long time in the company.As per sotoma pty ltd there are workers who are working for more than 10 years so they are entitled to get this leave.So this is also the consideration which an accounting team of sotoma pty ltd keep in their mind.