Staffing and payroll

[Astha]

Hi,

Just wondering abt the annual Leave accrual.

Does annual leave still accrue like normal when the person takes annual leave?

Can someone provide information please?

Cheers!!

Astha

[Clive]

Hi Astha

You need to have a look at the Fair Work Australia website and in particular the Modern Award that covers your business and the National Employment Standards - http://www.fairwork.gov.au/Pages/default.aspx will have the details you need.

Regards

Clive Williams

[Astha]

Hi,

I had a look on Fairwork website but I am not clear about it.

Eg:It is fortnightly pay and 6.154 hrs of annual leave is accrued each fortnight.

                                           3.07 hrs of sick leave is accrued each fortnight.

   Suppose:

                   the employee takes annual leave,will the person be still accumulating 6.154 hrs fortnightly?Do I need to adjust the  accruals(reduced)?

                   the employee takes sick leave,does accrual need to be adjusted(reduced)? 

Can you someone make me clear in both the cases please?

Cheers!!

Astha

[Clive]

Hi Astha

Leave generally accrues while the employee is on leave.

Regards

Clive Williams

[Astha]

Hi

Could you please in more detail?

Does this happen in sick leave as well?Dont we have to reduce it?

Cheers!!

Astha

[Clive]

Hi Astha

http://www.fairwork.gov.au/resources/fact-sheets/national-employment-standards/pages/default.aspx is a link to National Employment Standards that control, except for certain instances in WA, what you must provide.  http://www.workforceguardian.com.au/ is a link to Workforce Guardian, who provide, for a fee, services for employers to ensure that they comply with FWA standards.  You have been given some general advice on what is normally required, however, we do not know enough about your particular circumstances.

Regards

Clive Williams

[Julie_A_C]

Hi Astha

As Clive stated sick and holiday leave accrue when someone is on holiday or sick leave.

Naturally in the week they take either the sick or holiday leave a reduction will also be made, if you have all your entitlements set correctly and record the payroll correctly.  eg Employee takes 2 days sick and sick leave hours paid 16, entitlement accrued 3.07hrs for fortnight the net effect will be a reduction in sick leave hours for that fortnight of 12.93 hours.

This is assuming a 40 hour week, which equates to the figures you quoted.

If this is not what is happening in MYOB for a payrun, I would suggest getting in a partner who can check all your accruals and linked accounts are correctly set up.

[Astha]

Hi Julie,

Thanks Julie for reply.This is what I was looking for.

Just wanted to confirm:

    Suppose employee takes 2 days sick leave in fortnightly basis payroll

          The entitlements accrual for that fortnight will be:         

                     Annual Leave accrual:4.93 hrs  ( (6.15/80)*64))

                     Sick Leave accrual:    2.46 hrs   ( (3.07/80)*64)

What about when the employee takes 2 days annual leave?Willl they be accruing normal (6.15 and 3.07 hrs)?Do I need to adjust like above?I am confused in this part as I have heard that when  annual leave is taken,normal hours are accrued(no need of adjustment) but not sure about this.Could you please provide the guidance in this?

I am looking forward to hearing from you.

Just to add note:MYOB does not calculate automatically.Found that it needs to be adjusted manually when the employee takes holiday.

Cheers!!

Astha

[Julie_A_C]

Hi Astha

You should NOT be doing any adjusting.  I understand what you think you are doing but it is incorrect.

When the employee takes 2 days sick leave that fortnight's pay will be made up of 64 hours normal and 16 hours sick leave.  Total paid 80 hours for fortnight (assuming employee has enough accrual).

Entitlements will be 6.1538 hours holidays and 3.0769 hours sick leave accruing for that fortnight.

[ronatbas]

Astha wrote

Just to add note:MYOB does not calculate automatically.Found that it needs to be adjusted manually when the employee takes holiday.

MYOB will adjust automatically if you go to the RelevantLeave screen and tick the box at the bottom. Automatically adjust Base Hourly or Base Salary Details(see attachment).

Once that is ticked any leave hours will be deducted from the total base hours for the period.

As others have pointed out there is no need to fiddle with the accrual figures unless your entitlement has been incorrectly set up.

Ron