Holiday pay seems high - NZ payroll

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Contributing User MYOBAcc
30 Posts
Contributing User
New Zealand
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Holiday pay seems high - NZ payroll

Hi There

 

I am doing a Final pay and the amount of holiday pay seems high. They have earned $5440 since 25.1.17 and it is saying I need to pay $2327.36. I thought it was 8% of the gross pay - do I need to make an adjustment.

They only hve 5 hours of annual leave left and 20 accrued sinse 25.1.17

 

Thank you in advance

7 REPLIES
MYOB Moderator Steven_M
18,825 Posts
MYOB Moderator
New Zealand

Re: Holiday pay seems high - NZ payroll

Hi @MYOBAcc

 

New Zealand Payroll will take the Holiday Pay Due value that is listed in the Maintain Employees>>Leave Details tab and include 8% of Gross Earnings for that final pay (Annual leave is included).


If you are indicating that the Holiday Pay value on the final pay is incorrect it does sound like you need to check that value and possible look into why that value is not 8% of the gross earnings.

 

I would assume it's probably to do with the fact that at some stage the employee's holiday anniversary date is not the same as their start date and the annual leave hasn't rolled through correctly. If that is the case then the annual leave entitlement may have not rolled correctly and you would be looking at NZ Payroll Support Note: Fixing holiday pay paid in error to ensure that you have the correct values. There are other reasons why that Holiday Pay Due value is no 8% of Gross earnings such as it has been manually overtyped, the employee was a casual employee at some stage and the holiday pay hasn't been paid to them.


Kind Regards,
Steven
MYOB Client Support
Contributing User MYOBAcc
30 Posts
Contributing User
New Zealand

Re: Holiday pay seems high - NZ payroll

Hi

 

I wanted to attach something for you to look at. How can I do that?

 

thanks

MYOB Moderator Steven_M
18,825 Posts
MYOB Moderator
New Zealand

Re: Holiday pay seems high - NZ payroll

Hi @MYOBAcc


You are welcome to attach screenshots to your Forum post using the Photos option in the Toolbar when writing your post. Alternatively you can attach a document/file using the Choose File option at the bottom of post when writing (opposite side of the Post button). 

For more information please see the Posting and interacting option of the Forum Help page


Kind Regards,
Steven
MYOB Client Support
Contributing User MYOBAcc
30 Posts
Contributing User
New Zealand

Re: Holiday pay seems high - NZ payroll

Hi

 

Can you have a look at this pleaseHolidayPay (2).jpg

MYOB Moderator Steven_M
18,825 Posts
MYOB Moderator
New Zealand

Re: Holiday pay seems high - NZ payroll

Hi @MYOBAcc

 

Generally the extra amount comes from having an older value that comes a previous year. I see the employee has been employed with the company since Late January has the employee ever been setup as a casual employee at some time i.e. the Normal Hours per Week were set to be 0?

 

Along with that I have sent you a private message on the MYOB Community Forum in regards to getting a copy of the Maintenance Audit report for that employee to see what has gone on.


Kind Regards,
Steven
MYOB Client Support
Contributing User MYOBAcc
30 Posts
Contributing User
New Zealand

Re: Holiday pay seems high - NZ payroll

They have been employed since 2010 - not been set up as a casual - the only changes made to this employee were taking him out of Kiwisaver - at their request and changes in their hourly rate

MYOB Moderator Steven_M
18,825 Posts
MYOB Moderator
New Zealand
Accepted Solution Solved Solution

Re: Holiday pay seems high - NZ payroll

Hi Everyone


After getting a copy of the Maintenance Audit report if for that employee it does look like that the Gross Earnings value for the employee had been changed manually to be 0.00.  Thus holiday pay was still being owed for that employee which in turn will be required to be paid out when the employee is terminated.


Kind Regards,
Steven
MYOB Client Support
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