Annual leave accumulating seems incorrect

[newbieCath]

Hi,

I am using MYOB Payroll for our employees and have noticed weird discipancies with the annuall  leave.  

When I started from the previous Payroll person she told me to always tick the estimate button for their hours, which makes sense for our business as our staff are rostered weekly and their hours vary.

On viewing one employees leave I thought her balance of annual leave was weird it shows as -115 hours however she has not taken more than 80 hours leave per year since she started.  She works an average of 35 -40 hours per week so should be accumulating at least 155 hours per year.  She started in 2014 and the report shows that she only started taking leave in 2016 -3 months before her 2nd anniversary.

 Help!

Catherine

NZ Payroll user

[jenniek]

Hi @newbieCath 

Did you do the annual leave update at your employee anniversary date?

Annual leave starts out as Holiday Pay and earns 8% of gross earnings, which is also estimated in hours in advance. At the 12 month anniversary date, the system should remind you to update the annual leave where the entitlement based on normal hours per week will turn into hours of annual leave at a rate - it will also take away any leave paid in advance and leave the employee with the difference.I'm not aware that ticking the estimated button makes any difference. If you didn't set up the leave details screen correctly in the first place, the leave would not have accrued, and this may need a manual calculation to be done, and the leave balances corrected before moving forward.

[newbieCath]

Hi @jenniek,

Thank you for your reply.  The system does usually prompt me to update the leave entitlements.  She had her anniversary last week and it doesn't seem to have updated her leave.  I am sure she has more holidays owing then what the system has.  So do I need to work out her annual gross earnings for each year and then convert that to annual leave less the leave she has taken?

I found her year to date earnings and worked out the 8% gross per year less the leave she has taken and it did alter her leave a bit.  It is still showing as a negative hours figure though her holiday pay looks accurate now.

Catherine

[jenniek · Accepted solution]

Hi @newbieCath 

Correct - you would correct the leave details screen and convert her Hol Pay accrued to annual leave in hours.

Her gross earnings should only be the grossearnings since her anniversary date and then calculate 8% of that and overtype the hol pay accrued amount.

Do you have normal hours per day/ normal days per week entered? (to give her normal hours per week - if this is not entered, then she gets no entitlement which would muck up the leave roll over.

her annual leave entitlement is in hours not $. eg: if you worked out what her average hours per week are and say it worked out at 42 hours per week average, then you would give her an entitlement of 168 hours, then take off what she has taken, leaving her with the balance. The system will work out what the rate is as this can change on a weekly basis depending on when she takes her leave.