Purchasing additional annual leave
I have a staff member who is looking at purchasing extra a leave.
How is this processed in MYOB with them being deducted each week to pay for the extra leave?
Forum Discussion
Hi PriyaW,
It can be a bit tricky to work out how to handle both the salary adjustment and leave balance in the software.
Purchased annual leave is usually handled by reducing the employee’s salary by the value of the extra leave, rather than setting up a separate deduction each pay.
In AccountRight, you’ll need to:
- Set up a separate wage pay item/category for the purchased leave when it’s taken.
- Set up a separate leave pay item/entitlement to track the purchased leave balance.
- Add the purchased leave as an opening balance in the employee’s first pay run.
- Pay the leave through the separate purchased leave wage item when it’s taken.
- Restore the employee’s original salary at the start of the following year.
The steps vary slightly between MYOB Business and AccountRight, so have a look at Purchasing annual leave for detailed instructions.
Regards,
Genreve
