Entitlements
Happy Easter to all,
I am in need of some information I hope someone can help me with. One of my employers has broken his leg and no doubt will need time off (not done at work).
From what I c...
Forum Discussion
Hi kermie,
Happy Easter to you too, and sorry to hear about your employer’s accident, I hope they’re on the mend soon.
You’re right to question those numbers. Leave balances can look pretty scary when they build up, but this is usually fixable inside payroll and doesn’t need anything formal like changing contracts.
In a lot of cases the cause is quite simple: the wage item for holidays or sick leave isn’t correctly linked to the entitlement. That means the employee still gets paid when they take leave, but the entitlement balance never goes down, so it just keeps accruing and accruing.
Here’s an easy way to tackle it:
Check the links
Open the employee’s card and look at their leave/entitlement setup. Make sure the Holiday/Annual Leave and Sick Leave wage items are linked to the matching entitlements (not just Base/Ordinary hours).
Adjust the balances
Once you’ve worked out what the correct holiday and sick leave hours should be (for example, closer to one year’s worth instead of several), use a leave/entitlement adjustment (often via a $0 pay) to bring those balances back into line.
Use the linked leave items from now on
Next time the employee takes annual or sick leave, pay it using the proper leave wage items, so the entitlement reduces automatically and doesn’t over-accrue again.
If you ever want more background on how MYOB handles leave and entitlements, this Help article is a good reference:
Leave and entitlements
Regards,
Earl
Good Morning,
Thank you so much for replying.
I had a bit of a gander and sort of see what you are saying. I will process a week holiday and see what happens (I entered the date's for a week off and it come up with this will leave a negative balance -144.600, Accrued this pay 3.077, leave being 40hrs, projected balance -181.519, really do not understand this, haven't lodged yet as I am in need of your assistance again) if I lodge can we clear to start again?
In regards to sick leave I assume this accrues each year if the 10 a year do not get used?
If you have accrued say 107.400 roughly does this equate to approx 12 days?
If so how do I pay for those days?
Do you pay the Net a day which as accrued (as per his Net Wage ie $200 a day)?
Do I pay this in a lump sum?
If this is correct I may need assistance on clearing the figures to start a fresh.
I am sorry for the headache as learning properly now. I really do appreciate your patience and help.
Thank you
Kermie
Hi kermie,
You’re all good, this is a lot to untangle and you’re asking all the right questions. When you try to process a week of annual leave and see a negative balance, that means the week of leave is more than what’s currently accrued, so the employee would go into negative leave. You can still record it if your agreement allows it, or you can reduce the hours or fix the opening/accrued balance first. As for your other questions,
- Sick leave normally keeps accruing each year if it’s set up as 10 days per year, even if the full 10 days aren’t used.
- A balance like 107.400 hours does roughly equal 12+ days, but it depends on the employee’s standard hours per day.
- You don’t normally pay those sick leave hours out as one lump sum. Instead, you pay sick leave when it’s actually taken, by entering the number of hours of sick leave on the pay. MYOB then calculates the amount based on their usual hourly rate, so it lines up with roughly their normal daily pay.
- If the balances are clearly off and you really want to start fresh, that usually means correcting opening balances. You can do a void pay if needed and make sure to check this link about adjusting leave entitlements for the right steps.
If you’re still unsure about any part of this, you can reach out to our team on Live Chat via our virtual assistant, MOCA, or by submitting a support case via My Account. This way, they can can guide you through it.
Cheers,
Doreen
