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Bullswool's avatar
Bullswool
Trusted User
3 months ago

NZ Annual leave and averaging

Hi,

A question about how the average rate is calculated for New Zealand annual leave. 

 

Our old NZ MYOB pay system (NZ Desktop) used to calculate the average rate by using the previous 52 weeks and working out the weekly average rate. I think this is considered section 8(1) of the Act, but don't quote me.

 

Our new NZ MYOB pay system (Acumatica) uses the 52 week method AND the 4 week rolling average, and then selects the higher of the two averages. I think this is sections 8(1) and 8(2).

Using this second method can create a huge difference in the annual leave rates.

 

We employee regular set roster full time and regular set roster part time employees.

Our employment contracts only mention we pay in accordance with the Holidays Act.

 

Which is the correct method?

 

 

1 Reply

Replies have been turned off for this discussion
  • Will_H's avatar
    Will_H
    MYOB Moderator
    3 months ago

    Hi Bullswool​ ,

    MYOB Acumatica community support has been moved to the MYOB boards in Acumatica community forum, to make sure users get answers more relevant to their product.

    You can reach these boards by using the below link:

    https://community.acumatica.com/myob-user-discussions-299 

    This post is read only, so if you need further support please create a new post in the Acumatica board with your specific questions.


    VERY BRIEFLY:
    Employment NZ have some discussion of the ACT in their guidance:

    https://www.employment.govt.nz/leave-and-holidays/annual-holidays/managing-annual-holidays#scroll-to-4
    More depth in their detailed guide:

    https://www.employment.govt.nz/assets/uploads/documents/leave-and-holidays/holidays-act-2003-guidance.pdf 


    Acumatica Payroll allows for calculation of all of the Averaged Daily/Weekly pay methods:

    • Average Daily Pay (ADP),
    • Relevant Daily Pay (RDP) and
    • Average Weekly Earnings (AWE).

    These are also compared to the Ordinary Weekly Pays:

    • Ordinary Weekly Pay Standard 8(1)
      (aka Rate Method 'OWP 8.1')
    • Ordinary Weekly Pay 4 Week Av. ($)
      (aka Rate Method 'OWP 8.2')
    • Ordinary Weekly Pay Agreed Rate ($)
      (aka Rate Method 'OWP 8.3')

    These also interact with the Definition of Week settings.

     

    There's some fairly extensive discussion in the online help related to this in various places;

    https://help.myob.com.au/advanced/Docs/Published/UserGuide/MP_PP_40_45.html 

     

    Because Acumatica Payroll is configurable for a range of businesses, you can set employees to use the rates appropriate for them at your business.

      

    If you need help deciding which of the various calculations are appropriate for your business, please refer to Employment New Zealand  (The part of MBIE that used to be the Department of Labour),
    Or contact your payroll advisor/implementing consultant for further advice.

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