Leave accruals set up

Hi khpser,

Thanks for the detail. To make this easier (especially when LWOP is involved), the best way forward is to set the leave accruals based on hours, not percentages. For Annual Leave and Personal Leave, update the accruals to:

• Calculation basis: Hourly
• Accrual rate: Based on the correct hours per pay period
• Exempt: Leave Without Pay (LWOP)

By exempting LWOP, any hours entered as LWOP won't be included in the accrual calculation, so you won't need to manually adjust leave when someone has unpaid time.

Salary employees will need their own separate leave accrual. Because their accrual is based on gross hours, they won't accrue correctly if they're linked to the same accrual as hourly employees. For salary staff:

1. Create a new leave accrual specifically for salaried employees
2. Transfer the existing accrued leave to the new accrual so balances continue correctly
3. Unlink them from the current leave accrual (the one that was changed to percentage of gross hours)
4. Link them to the new salaried leave accrual going forward

Here's a helpful article that steps through setting this up: Leave and entitlements.

Regards,

Sai

Hi Sai,

Thank you for the reply, much appreciated. Still a bit confused.

So we have:

1.  Salary staff - 40hrs pw (work and pay only 40hrs / accrue 3.077hrs pw AL / 1.538 PL)

2.  Staff F/T - Paid for 38hrs pw, but work 40hrs and bank 2hrs as RDO

** how do I set these ones up? to accrue AL & PL on 40hrs of work when only paying for 38hrs if accrual by hourly?  (do I set up to accrue AL&PL on RDO hours as well?) Also if I set it to hourly then I can't do any exemptions - like LWOP.  So doesn't work, unless I'm doing something wrong? See below

3.  Staff F/T - 40hrs pw (hourly)(work 40hrs and get paid 40hrs)

4. Staff P/T - hourly rate based on hours worked

What am I missing here, please help :)

Thank you.

PS. Ah, or should my 40hr working staff, being paid 38hrs, only be accruing 2.923hrs per week A/L (banking 2hrs RDO pw)

Hi khpser,

If you've got base hourly and base salary employees, their leave accruals really should be set up separately, especially if there are hours (like LWOP) that shouldn't count towards leave. From your screenshot, the reason the Exempt option is greyed out is because the calculation basis is set to Equals X hours per pay period. With that calculation basis, MYOB will always accrue the same amount every pay run no matter what hours or pay items are used. So there's no way to exempt anything, including LWOP.

If an employee takes LWOP and shouldn't accrue leave, that calculation basis won't work because LWOP still falls in the same pay period and the accrual just happens automatically. 

For the fix, change the leave accrual calculation basis to Percentage of Gross Hours. Once you do that:

• You'll be able to exempt LWOP
• Only the hours that should accrue (like base hourly or paid leave) will count
• Whatever hours you enter in base hourly or leave with pay will be the hours used to calculate the accrual in the pay run.

So in short, percentage of gross hours gives you the flexibility you need, while hours per pay period is a fixed setup and won't suit LWOP scenarios.

Regards,

Sai