Hi We have a permanent employee who is going to do some extra work under a fixed term contract. Can we set her up twice with two different employee codes as it will be easier to track holiday pay etc? Thanks Sue

Hi Orchard-Sue I would be getting more specialised HR advice - as I don't believe you can pay Hol Pay as you go as well as accrue for the same employee. You would not be meeting the Hols Act requirements. The rate for leave accrued is based on total gross earnings of an employee - and the employee is employed by the same employer. The second rate should be used to pay for the separate job done, but it will be included in total gross earnings, and therefore the leave rate would be slightly higher in the interim because of the gross earnings over the previous 12 months when leave is paid out. The employee is still only entitled for 4 weeks leave.

Employee with two contracts

6 Replies

Shella_A
MYOB Moderator
2 years ago
Hi Orchard-Sue,

Thank you for your post.

In my understanding you wanted to set up one employee with two different employee codes since she/he had two contacts. To assist you further with this, may we ask if these two contracts have two different pay rates as well? We will be waiting for your response.

Cheers,

Shella
jenniek
Ultimate Partner
2 years ago
Hi Orchard-Sue
Which payroll system are you using?
I would keep the employee under one employee code, because the PAYE will be incorrect if you split the employee. Could you use an allowance code to pay the 2nd payrate?
Orchard-Sue
Contributing User
2 years ago
Hi Shella we are using MYOB NZ Payroll. At this stage the pay rate is the same. On one contract she is on permanent and entitled to annual leave. The other contract is seasonal for a couple of extra days a week for 3 months. We are just trying to find out the best way to load her in the system. It makes it diificult with holiday pay and stats although as Jennifer said if I do them as two different employee codes I run into problems with tax. So maybe i should just do them on one and then look at the amount of HP rather than annual leave owing. Thanks Sue
jenniek
Ultimate Partner
2 years ago
Hi Orchard-Sue
I would be getting more specialised HR advice - as I don't believe you can pay Hol Pay as you go as well as accrue for the same employee. You would not be meeting the Hols Act requirements. The rate for leave accrued is based on total gross earnings of an employee - and the employee is employed by the same employer. The second rate should be used to pay for the separate job done, but it will be included in total gross earnings, and therefore the leave rate would be slightly higher in the interim because of the gross earnings over the previous 12 months when leave is paid out. The employee is still only entitled for 4 weeks leave.
Orchard-Sue
Contributing User
2 years ago
Thaks Jennie, we will keep her as one employee.
Earl_HD
MYOB Moderator
2 years ago
Hi Orchard-Sue,

Thanks for the detailed information.

Apologies for the delayed response, and thank you for your patience. I'd like to extend gratitude to jenniek for sharing valuable insights on this issue. Indeed, this situation requires the expertise of an HR professional. The resolution involves maintaining a single card file for this employee with the two different rates.

Should you require additional assistance, please feel free to initiate a new post, and we'll gladly provide further support.
Regards,
Earl

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Employee with two contracts

6 Replies

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