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Payroll leave accruals

Partner Jaska
1 Post
Partner
Australia
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Payroll leave accruals

I have set up multiple payroll categories for annual leave accruals for different hours worked per week and the employees sometimes change the number of hours worked per week sometimes.  My client doesn't like the pay advice showing multiple annual leave accruals and thinks it's confusing for the employees. I can't see another way around it as each rate is different. e.g. Leave accrual for a 38 hour week equals 2.92308 hours per pay period and the accrual rate for a 30.4 hour week equals 2.33846 hours per pay period.

This has resulted in the payslip showing 2 to 3 leave accrual amounts under entitlements as the employees hours chop and change.

Basically my client wants to consolidate these to one entitlement on the payslip and I can’t think of a way to do this which doesn’t involve a lot of extra calculations and work.

Any ideas?

1 REPLY
Valued Partner GDay53
100 Posts
Valued Partner
Australia
Accepted Solution Solved Solution

Re: Payroll leave accruals

Assuming all employees that work various hours each week are all paid hourly the you should be using the % not the hrs / pay period method to record leave accural, and they should all be linked to the one leave accural catagory. Normally you would only use the hrs/pay period for salary staff.

The 7.6923% in the screen shot below is based on four weeks holiday a year. If your employees are entitled to different amounts of leave accural e.g. shift worker usually get 5 weeks / year then you would need a different leave accural catagory with a different %.

 

Holiday accural.jpg

 

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