leave not accruing for paid leave days
Hi,
Can someone please help with this? When an employee takes annual leave and it is a paid leave, the system used to accrue 12.67 hours end of each month and the law also states that annual leave continues to accrue as long as employee is on paid leave. Howver in the recent payrun done(for Dec) I noticed that when a person has taken paid leave, the system is reducing the accrued leave hours and it seems to propotional to the other regular hours( hours actually worked). for eg, when a person is on paid leave for 2 days, the hours accrued is only 10.24 or so and not 12.67. As long as employee is not on Loss of Pay he/she should accrue 12.67 hours every month
I have checked quite a lot of payruns from the past and everywhere i see the whole of 12.67 hours accrue each month even when employee is on paid leave. It is just this month I noticed the reduction in acrrued hours. Has someone else noticed this too? Why is this the case?
HI ann75
What is the Leave pay item's calculation basis set to be? This can be checked via Payroll>>Pay items>>Leave>>Selecting the desired leave pay item-- Leave information>>Calculation basis. The importance of this is that this determines how the leave is calculated for the employee.If the calculation basis shows Equals a percentage of wages and the Percent of shows Base Hourly (for example) it will only calculate on hours paid through that Base hourly pay item i.e. any hours paid through the Annual Leave Pay pay item will not be included in those calculations. You commonly want that that calculation basis to be Equals a percentage of wages and the Percent of set to be Gross Hours. This way all categories will be included in the calculation (you can exclude certain categories if not required using the Leave exemptions section if necessary).
Please note: It does depend on the setup and the way you pay your employees - Help Article: Set up leave has information on setting up leave that may be more relevant to your situation and employees.
