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Anewbee's avatar
Anewbee
Experienced Cover User
7 months ago
Solved

Prevent entitlement from accuring on unpaid leave

Good Afternoon

 

How can I prevent entitlements from accruing on unpaid leave for my salary employees? When I enter unpaid leave hours in the category on the payslip, the sick and annual leave accrual figures don’t change. For our salary employees, the sick and annual leave Entitlement Categories are set up for the Calculation basis as equals hours per pay period. I’ve tried to use the exempt button as per MYOB instructions but it's not active. What is the easiest way to stop the entitlement accruing on the payslip?

 

Thank you, I will appreciate your assistance. 

 

  • Hi Anewbee,

     

    Thanks heaps, for sending through the screenshots! Sorry for any confusion with our earlier replies and for not explaining things quite right. To clarify: You can only exempt pay items from leave accrual if the calculation basis is set to percentage of gross hours, otherwise, the exempt option is greyed out. If you don’t want employees to accrue leave on unpaid leave, set them as base hourly with a percentage of gross hours calculation. For base salary employees, you’ll need to manually adjust their accruals to exclude unpaid leave hours.


    Cheers,

    Shella

8 Replies

  • Anewbee's avatar
    Anewbee
    Experienced Cover User
    7 months ago

    Hi Shella_A​ 

    No worries, thank you so much for clarifying that. I will manually adjust their accruals. 

  • Shella_A's avatar
    Shella_A
    MYOB Moderator
    7 months ago

    Hi Anewbee,

     

    Thanks heaps, for sending through the screenshots! Sorry for any confusion with our earlier replies and for not explaining things quite right. To clarify: You can only exempt pay items from leave accrual if the calculation basis is set to percentage of gross hours, otherwise, the exempt option is greyed out. If you don’t want employees to accrue leave on unpaid leave, set them as base hourly with a percentage of gross hours calculation. For base salary employees, you’ll need to manually adjust their accruals to exclude unpaid leave hours.


    Cheers,

    Shella

  • Anewbee's avatar
    Anewbee
    Experienced Cover User
    7 months ago

    Hi Earl Earl_HD​ 

    My apologies I don’t quite understand a few things. When you say “Your Calculation Basis Equals xx percent of xx is correct since the employee is on salary basis”, is that a typo? as I keep mentioning our accruing leave is set up like this: Our annual leave is set up as a calculation basis: Equals 5.769 hours pay period and our sick leave is set up as a calculation basis: Equals 2.885 hours per pay period. Please see attached screen shots, I have also attached a screenshot of the Unpaid Sick Leave Wage category. I have read though the article leave and entitlements.

    So are you saying I need to create a new entitlement category for personal leave & annual leave? And change the calculation basis to: Equals xx percent of xx which is different to what we currently have set up? Then do a zero pay to transfer accrued leave to the new entitlements for all salary employees? 

    Thanks so much for your assistance😊

  • Earl_HD's avatar
    Earl_HD
    MYOB Moderator
    7 months ago

    Hi Anewbee,

    Thanks for sharing the extra details! Since the exempt button is greyed out, the best workaround is to create a new entitlement. Your Calculation Basis Equals xx percent of xx is correct since the employee is on salary basis.   Once that’s ready, just transfer the leave balances over from the old entitlement. 

    Please see this help pages for guidance. Leave and entitlements and Adjusting leave entitlements

    I hope this helps!

    Regards,
    Earl

  • Anewbee's avatar
    Anewbee
    Experienced Cover User
    7 months ago

    Hi Genreve_S​ 

     

    Appreciate your reply. As mentioned in my original message "for our salary employees, the sick leave and annual leave Entitlement Categories are set up with the Calculation basis as equals hours per pay period not the “equals % of gross hours” option. Not sure if there is another way to work around this?

    Thank you

  • Genreve_S's avatar
    Genreve_S
    MYOB Moderator
    7 months ago

    Hi Anewbee

     

    When you set up leave accrual using the “equals % of gross hours” option, you’re basically telling the system how to work out how much leave your employee racks up. Once you pick this setting, you’ll see the exempt button become available up top. Give that a click, and you can pick which wage categories shouldn’t count towards leave accrual. 

     

    For better visuals on the process, you can also take a look at the "adding exemptions" part of this article.

     

    Regards,

    Genreve

  • Anewbee's avatar
    Anewbee
    Experienced Cover User
    7 months ago

    Hi Isaiah_C​ 

    I tried the suggestion to click equals% percent of gross hours then click equals hours per pay period, but it didn't reduce the sick and annual leave accrual on the pay slip. Are there any other suggestions or is it helpful for me to send screen shoots? 

    I would really appreciate some assistance, Thank you

  • Isaiah_C's avatar
    Isaiah_C
    MYOB Moderator
    7 months ago

    Hi Anewbee,

     

    Sounds like you're doing all the right things already and yep, what you're experiencing is quite similar to this post here: Preventing leave from accruing on unpaid leave | MYOB Community. It walks you through a fix that should help stop those entitlements from accruing while your salary employees are on unpaid leave.

     

    If you've given that a crack and it's still not behaving, your best bet is to jump onto our live chat support through are MOCA, our virtual assistant. They'll be able to dig a bit deeper with you.

     

    Regards,

    Sai