Forum Discussion

Dee2016's avatar
Dee2016
Cover User
6 years ago

How to interpret a negative leave accrual situation

Hi,    I've got a complicated situation where an employee didn't have enough accrued leave to be paid for all of the annual shut-down period and the boss felt sorry for him (because the employee wa...
  • Steven_M's avatar
    Steven_M
    6 years ago

    Hi Dee2016 

     

    MYOB Essentials is a little bit different in terms of average weekly earnings and unpaid leave.

     

    Generally, if an employee did not work for whatever reasons you wouldn't enter a pay for that employee. As the Average weekly earnings is based on the gross earnings for the 12 months since the date of the start of the pay period as you are not processing pay for them you are losing weeks at the top end. For example say I paid my employee $500 for one week and then for the next 51 weeks I paid them $100, the gross earnings for the 53 week would only be based on the 51 weeks of $100.

     

    In most cases. if you have not paid the employee then you would need to file anything to the IRD for this be it through PAYE purposes or Payday filing.

Dee2016's avatar
Dee2016
Cover User

Hi Jennie,

 

Thank you so much for replying to my post!  Your explanation that the employee is still accruing leave at his ordinary hours per week makes sense to me.

 

I am using MYOB Essentials Payroll and, as you've probably guessed, I didn't realise that I should have been recording the unworked time as unpaid leave.  Should I retrospectively enter the employee's unpaid leave hours for each week that this has being going on?  If so, can I do this without having to cancel the other employees' pays?  Or is it a case of going back, deleting everything, and re-entering everything correctly?

 

Other questions that spring to mind are:

Does what I ought to do have any impact on the PAYE returns I've already submitted?

Does PAYDAY FILING have any effect on what I ought to do?

 

Any advice/instructions you can give me on how I actually go about fixing my errors would be greatly appreciated, Jennie.

 

Kind regards,

Dee

 

 

Steven_M's avatar
Steven_M
Former Staff
6 years ago

Hi Dee2016 

 

MYOB Essentials is a little bit different in terms of average weekly earnings and unpaid leave.

 

Generally, if an employee did not work for whatever reasons you wouldn't enter a pay for that employee. As the Average weekly earnings is based on the gross earnings for the 12 months since the date of the start of the pay period as you are not processing pay for them you are losing weeks at the top end. For example say I paid my employee $500 for one week and then for the next 51 weeks I paid them $100, the gross earnings for the 53 week would only be based on the 51 weeks of $100.

 

In most cases. if you have not paid the employee then you would need to file anything to the IRD for this be it through PAYE purposes or Payday filing.

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