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Amanda7875's avatar
Amanda7875
Contributing User
6 years ago
Solved

RDO's and Annual Leave and personal leave accrual

Good Afternoon   I have set up our system to pay a 38 hour week with 2 hours per week banked for an RDO, however when people take leave and I am paying them 7.6hours but their actual annual leave...
  • Steven_M's avatar
    Steven_M
    6 years ago

    Hi Amanda7875 

    The only configuration that I can foresee the following situations meet would be with the process outlined below:

    • Reduce the entitlement by 8 hours
    • Pay the employee 7.6 hours
    • have 0.4 hours accrued as RDO

    The set up required to achieve this:

    1. Create a new wage category - "RDO Holiday Pay Reduction" (or something similar). 
      Payroll>>Payroll Categories>>Wages>>New
    2. Link that new payroll category to the employee(s)
      Payroll>>Payroll Categoires>>Wages>>Select the desired category>>Employee and tick the desired employee

    The process of the pay:

    1. Enter the full holiday pay amount (8)
    2. Enter a negative amount against the newly created leave reduction category (0.40)
    3. Enter/Ensure the desired amount of hours in Base Hourly (30.40)

    For example

     

    What this does is it will reduce the annual leave entitlement by the required amount of hours ( 8 ) as you have entered that number of hours against the linked wages category. You are paying the employee for 38 hours = 30.40 + (8 - 0.4) and the entitlement has accrued on 38 hours (38 x 5.263% =2.0)

     

    To ensure that the above method does work for your reporting requirements I would recommend running that past an accountant and payroll advisor.

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