Setting up Part-time employee

Hi smm,

Sure thing! You can set up your part-time employee by switching their pay basis to Salary. This way, their pay isn't based on how many hours they work but on a fixed amount for their workweek. Since they’re on a four-day workweek, just figure out their weekly or pay-period salary and pop it into their settings.

Cheers,

Princess

Thanks Princess. Are there any consequences of doing it this way?

Hi smm,

If you've got the employee set up properly, you’re all good to go. Make sure that the other Payroll Categories for salaried employees are also set to a salary type. To keep everything spot on for reporting, it’s always a good idea to have a quick chat with your financial advisor or accountant. Here’s a handy forum post about switching from hourly to salary pay that you might want to peek at. 

Cheers,

Princess

Thanks Princess. How does long service leave accrue in this case, I assume that LSL accrues pro- - 80% (as it's 4 days a week) of what a full time employee would accrue in hours.

Is this correct?

Hi smm,

Great question and you're definitely thinking along the right lines! When it comes to how long service leave (LSL) accrues, it can get a bit technical depending on your state or industry, so it's best to have a quick chat with your accountant to make sure it's calculated spot on for your setup.

In the meantime, here's a handy link on how to set up LSL if you need it: Long service leave.

Regards,

Sai 

Thanks Sai, does anyone else have any input into this? My accountant is not up to speed on MYOB