RDO's and Annual Leave and personal leave accrual

Amanda7875

Good Afternoon

 

I have set up our system to pay a 38 hour week with 2 hours per week banked for an RDO, however when people take leave and I am paying them 7.6hours but their actual annual leave or personal leave accrual should be reduced by 8 hours to allow for 0.4 hours to be banked into their RDO hours, I am not sure how this is done. The payslip shows 7.6 and the hours accrued are reduced by 7.6 instead of 8??

 

Please help

Thank you

Steven_M

Hi @Amanda7875 

The only configuration that I can foresee the following situations meet would be with the process outlined below:

• Reduce the entitlement by 8 hours
• Pay the employee 7.6 hours
• have 0.4 hours accrued as RDO

The set up required to achieve this:

1. Create a new wage category - "RDO Holiday Pay Reduction" (or something similar). 
   Payroll>>Payroll Categories>>Wages>>New
2. Link that new payroll category to the employee(s)
   Payroll>>Payroll Categoires>>Wages>>Select the desired category>>Employee and tick the desired employee

The process of the pay:

1. Enter the full holiday pay amount (8)
2. Enter a negative amount against the newly created leave reduction category (0.40)
3. Enter/Ensure the desired amount of hours in Base Hourly (30.40)

For example

 

What this does is it will reduce the annual leave entitlement by the required amount of hours ( 8 ) as you have entered that number of hours against the linked wages category. You are paying the employee for 38 hours = 30.40 + (8 - 0.4) and the entitlement has accrued on 38 hours (38 x 5.263% =2.0)

 

To ensure that the above method does work for your reporting requirements I would recommend running that past an accountant and payroll advisor.