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KaliPPS's avatar
KaliPPS
Experienced User
30 days ago

Reducing hours in MYOB Payroll Desktop

Hi,

 

I have an employee that was working 40 hours per week (over 5 days) and has just reduced down to 8.25 hours per week (over 1 day).

 

Before the change, she had taken 35 hours of annual leave in advance, and this is what her leave looked like:

 

After i updated her normal days/normal hours; it changed to this:

 

Can you please advise the calculation behind the change and why the annual leave rate has disappeared?

If i go to enter a pay for her i can see her annual leave rate has changed to $110.94424.

 

I need to be able to explain the change in hours and annual leave rate so i can ensure MYOB has calculated this correctly. However, i am not understanding how the system got to the new figures.

NZ Payroll

1 Reply

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  • jenniek's avatar
    jenniek
    Ultimate Partner
    29 days ago

    Hi KaliPPS 

    his looks OK. When an employee reduces hours per week - so does the leave entitlement. But the 8% earnings does not change, so the hourly rate is pushed up hugely. The main thing to look at is the $ value on the right hand side hasn't changed - the employee is still owed $2927.35, and they are still owed 3.03 weeks. The 3.03 weeks is now made up of 1 day per week @ 8.25 hours instead of 5 days @ 8 hours. Hope this helps. The hourly rate this will be paid at will be much higher because it still the avg of the last 12 months earnings when they go on holiday which includes hours worked at more than the now std hours. This rate will decrease over time.