RDO's and Annual Leave and personal leave accrual
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
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:
- Create a new wage category - "RDO Holiday Pay Reduction" (or something similar).
Payroll>>Payroll Categories>>Wages>>New - 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:
- Enter the full holiday pay amount (8)
- Enter a negative amount against the newly created leave reduction category (0.40)
- 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.
