Payroll Terminology & Definitions Glossary

Payroll Glossary

A person sitting at a desk, using a laptop to check the Payroll Terminology & Definitions Glossary

Accrued Leave

Accrued Leave is the amount of leave an employee currently has available to them at a given point in time.


Allowances are amounts paid that cover anticipated costs or as compensation for conditions of employment. For example, you may provide your employee who travels to customers a Fuel Allowance of $50 a week.

Award / Classification

Awards are legal documents that outline the minimum rates of pay and conditions of employment on top of the National Employment Standards (NES) for more than 120 industries and/or occupations in Australia. Within each industry award are a series of classifications according to skill level and/or qualifications which are applied to each employee. Each classification is allocated a minimum award rate.

Branch Number

A GST branch is formed with a business entity separately registers Its branch to suit the structural, management and accounting arrangements of the organisation. This allows the branch to report their GST separately from their parent entity.

Business Activity Statement

If you are either registered for GST or withhold taxes from an employees wage, then you will need to submit and remit payment of your Business Activity Statement (BAS). A BAS is a statement that is lodged to the ATO containing information such as GST collected and paid , PAYG withholding from employee wages, Voluntary withholdings, No ABN payment, PAYG Income tax instalments amongst others. A business activity statement is usually completed and submitted on a quarterly basis but some organisations may need to complete more frequently.

Casual employment

A person is a casual employee if they accept an offer for a job from an employer knowing that there is no firm advance commitment to ongoing work with an agreed pattern of work.

Casual Loading

Staff employed on a casual basis receive a loading in lieu of entitlements to leave, typically around 15-25% of the hourly rate paid to permanent employees.

Closely Held entities

A closely held payee or employee, is someone who is directly related to the business that they are paid by, or not 'at arms length'. Examples of closely held entities are family members of a family business, trust beneficiaries, or directors of a company. Closely held entities are required to be Single Touch Payroll compliant.

Compassionate Leave

Compassionate Leave is taken when a member of an employee's immediate family or household passes away or is critically ill. Employees are entitled to two days each time they meet the criteria and is available to Full time and Part-time employees. Payment is at the base rate for the ordinary hours they would have worked during the leave.


A deduction is a payment taken out of an employee's wage on their behalf, prior to the payment of wages. An employer can only deduct money if it is allowed under certain conditions. Deductions can be withheld either before tax or after tax (dependent on the type of deduction) - for more information see Fair Work

Free Payroll setup session

Get up and running with Payroll by scheduling a free session with our expert Sydney-based onboarding team.