Forum Discussion

Orchard-Sue's avatar
Orchard-Sue
Contributing Cover User
8 months ago
Solved

Employee with two contracts

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 et...
  • jenniek's avatar
    jenniek
    8 months 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's avatar
Orchard-Sue
Contributing Cover User

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's avatar
jenniek
Ultimate Partner
8 months 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's avatar
    Orchard-Sue
    Contributing Cover User
    8 months ago

    Thaks Jennie, we will keep her as one employee.  

    • Earl_HD's avatar
      Earl_HD
      MYOB Moderator
      7 months 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