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khpser's avatar
khpser
Contributing Cover User
1 month ago

Leave accruals set up

Hello....need help please... :)   We have employees who work 40hrs pw, get paid for 38hrs and bank the 2hrs pw as RDO hours (no set time that these hours/days must be taken, ie not a 9 day fortnigh...
Isaiah_C's avatar
Isaiah_C
MYOB Moderator
1 month ago

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

khpser's avatar
khpser
Contributing Cover User
1 month ago

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.

 

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