Forum Discussion

hycsimon's avatar
2 years ago

Incorrect value for gross earnings

I have a final pay at 30/06/2022 and therefore a calculation of the value of annual leave to process for 7 employees. This requires two steps. 1) Leave entitlement in hours is paid at the higher of ordinary weekly pay or average weekly earnings. and,

2) Eight % of the gross earnings since the most recent increment of the leave entitlement was recognised on the employees anniversary date. We are on a monthly pay run.

I have an anniversary date of 3/08/2021 and a termination date of 30/06/2022. I calculate the gross "earnings prior to current pay run"  as as 49,583.20 the sum of the monthly pays (4,583.33 4,583.33 4,583.33 4,583.33 5,208.31 5,208.28 5,208.33 5,208.33 5,208.30 5,208.33) from 31/08/2021 to 31/05/2021. Add June pay 5208.30 we get 54,791.53 which is multiplied by 8%.
MYOB Essential payroll gives me 44,374.87 "earnings prior to current pay run" which is the pays from 31/08/2021 to 30/04/2022. So that value is too low by one month's gross pay which I assume is the 31 May 2022 pay of 5,208.33.  44,374.87 and add current month June pay 5,208.33 equals 49,583.20 which is multiplied by 8%.

 

Which calculation is correct? And why? Thanks you!

1 Reply

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  • Hello hycsimon 

     

    Welcome to the Community Forum.

    Thank you for your question. To ensure that this is calculated and reported correctly in your software we recommend reaching out to your accountant or financial advisor as we cannot advise on this.