Forum Discussion

Experienced User

5 years ago

Annual leave rate increases

Why does the annual leave rate alter with certain staff AND sometimes I am able to change it back to their ordinary rate and sometimes not?

Also, we have a staff who started October 2019, has taken leave in advance. He is on a salary so his monthly payment should not change but it does, as his annual leave rate has increased and I am unable to change it.

thanks, Gail

Steven_M
5 years ago
Hi Gail206E

I'm personally not aware of any differences between using ORD or SAL to pay your employees. The only thing would be you would need to create overtime pay codes (like ORD1.5 or ORD2) if you are needing to make payment at a higher rate.

Although, if you are moving from ORD to SAL, I would do it at the start of the next payroll year. This is mainly for consistencies sake i.e. you have done almost a full year at ORD you might as well continue that process for another 6 weeks or so then draw a line in the sand for the next payroll year.

Steven_M
Former Staff
5 years ago
Hi Gail206E

Within New Zealand, Annual Leave rates are not based on the employee's pay rate but the average weekly earnings or ordinary weekly pay whichever one is higher. As such, if the employee is paid extra in a pay or they have an additional value this tends to increase the average weekly earnings and thus their annual leave would get paid out a higher rate.

With MYOB Payroll (Desktop), you can the calculation and what values are being included with those calculations through the Leave button in the Enter Pays window. Alternatively, via the ellipsis button in the Leave Details window.

NZ Payroll Support Note: Annual leave rate calculation has more information on that topic.
- Gail206E
  Experienced User
  5 years ago
  thank you I do understand that -
  
  My real question is : why does MYOB allow me to alter the annual leave rate sometimes for some people and sometimes it is greyed out so cannot change back to hourly rate. And should the annual leave rate alter for someone on a salary?
  - jenniek
    Ultimate Partner
    5 years ago
    Hi Gail206E
    What Payroll programme are you using?
    The annual leave rate for someone on a salary would alter if they got a bonus (which was part of gross earnings) or any other payments which were included in gross earnings.