Question 2- Employee Benefits-10 Marks

XYZ Ltd employs 5 staff. Each staff member is entitled to 20 days annual leave per annum. Leave loading

of 15.5% is paid when the leave is taken. Details of each employees leave entitlement at 30 June 2020 are

as follows:

EmployeeSalaryDays owing @ 1/7/19Days taken during year

Peter$35,0001712

Brown$70,0001010

Smith$85,0001518

Ian Rous$62,500315

Vimal$80,000915

Additional information:

There are 260 work days in a year.

On 1 July 2019each year all employees receive a 5% wage rise. There are no other wage rises given during

the year.

Required: Calculate the provision for annual leave for each employee as at 30 June 2020.