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DBNCFinance
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Payroll.

Now that the personal/carers leave has change the 10 days per year for part time workers. How do you suggest we calcualte this.

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MYOB Moderator Theresa_D
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Re: Payroll.

Hi @DBNCFinance 

 

Thanks for your post. I hope you're finding plenty of helpful tips, advice and support on the community forum. 

 

For information on this recent change, please refer to the details and information on the FairWork Ombudsman website--Paid sick & carer's leave linked here.  Once reviewing that you can set up the Leave and Entitlements in AccountRight.  

 

I hope this helps. If this answers your inquiry please mark 'Accept as Solution' to help other users find this information easier. 

Cheers,
Theresa

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MYOB Moderator Theresa_D
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Re: Payroll.

Hi again @DBNCFinance 

 

Just wanted to add the link the the post: Federal Court Ruling Personal Leave which might provide some additional insight on this. 

 

Let me know if you need further information. 

Cheers,
Theresa

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DBNCFinance
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Re: Payroll.

How do we put the new calculation into MYOB to calulate 10 days per year not on a prorata basis.

MYOB Moderator Theresa_D
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Re: Payroll.

Hi @DBNCFinance 

 

Please see Steven's explanation/information in his response to the forum post I linked above. This should explain  how you can input this information.  Typically AR accumulates based on hours but his workaround should prove useful in setting this up.  

 

I hope this helps. If this answers your inquiry please mark 'Accept as Solution' to help other users find this information easier. 

Cheers,
Theresa

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Partner Julie_A_C
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Re: Payroll.

hi @DBNCFinance , @Theresa_D 

 

I must really be missing something here.

 

If you have a part time employee that works say 3 days a week, and does say 5 hours tuesday, 7.5 hours wednesday and then 7.5 hours friday, what are you paying them for when they have tuesday off as sick?

 

5 hours or 7.5?  

 

working the 20 hours a week they would have accrued 20 hours per year (0.76923 hours per week using a percentage of hours at 3.84615%.)  Over 5.2 weeks this is 39.9996 hours, which as far as I think is two weeks of 5 days, i.e. 10 days or accrued sick/personal leave as a part-timer.

 

How do you then pay out a personal/carer day if that day was only a 5 hour day and the others were maybe a seven and half hour day?

 

The employee would then need to get smart and think of the correct day to be 'ill'.

 

I think the whole decsision being handed down is maybe getting read wrongly by some.  Part-timers have always been entitled to 10 days sick and 20 days days annual leave...but on a pro-rata basis of what they work.

 

You do not pay them 7.6 hours for a sick or annual leave day if that is not what they usually work.

 

 

 

 

Julie Carter AIPA, BBus(Acctg),
MYOB Professional Partner, Registered BAS Service Provider
Associate Member of Institute of Public Accountants
Member Association of Accounting Technicians
ph: 0417 927 654 email: accuratebooks7@gmail.com
JAC' of All Trades Bookkeeping (Servicing from Leederville to Pinjarra, Fremantle to Armadale WA)
DBNCFinance
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Re: Payroll.

Yes I know about leave, but until the new ruling part time are to get 10 days not pro-rata

MYOB Moderator Theresa_D
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Re: Payroll.

Hi @DBNCFinance 

 

The article I linked above describes how to set this up. It does not have to be pro rata.  You should be able to create the entitlement to equal the amount per year.  This is a total amount and not pro rata. The relevant employees can then be linked to that payroll category. As this is a new ruling I would advise speaking with an accountant/tax advisor if you have further questions regarding how your business needs to report this. 

 

Let me know if you need further clarification on creating this. If this answers your inquiry please mark 'Accept as Solution' to help other users find this post easier. 

Cheers,
Theresa

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Ultimate Cover User bungy15
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Re: Payroll.

Hi @DBNCFinance , @Julie_A_C , @Theresa_D 

 

I found this on the Employment law handbook website

 

0A157A07-90A6-4BCB-9982-462F56BA0B61.jpeg

 

Based on this the employee in Julie’s example would be entitled to between 50 and 75 hours leave depending on when they were sick.  If a part-time employee works the same hours per day, say 5 hours per day = 50 hours per year, we can recalculate the percentage to accrue the correct hours. But how do you accrue an entitlement when you don’t know what it is?  Even the running down method requires you to enter the number of hours.

 

Yours in confusion 😁

Tracey

 

 

Partner Julie_A_C
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Re: Payroll.

hi @bungy15 , @DBNCFinance , @Theresa_D 

 

I would be hoping that this ridiculous ruling gets appealed and then overturned as just think about this.

 

If you have a part timer who works 4 day per week (3 days of 7 hrs and 1 of 9hrs) using myob accrual on percentage they would accrue 60 hrs per year.  All good 2 weeks of 30hrs.

 

But now the employee gets 10 days and is to be paid at whatever they usually work the day they are sick, so smart ass employee takes 8 sick days of 9 hrs and 2 of 7 hours each year and gets paid a total of 86 hours sick days.

 

That is another 26 hours of paid sick/personal leave the employer has to pay out, when really the employee is not entitled to it.  Say the employee was paid $25 per hour, that is $650 a year plus super.

 

How is a business to survive?

 

You can not really use the running down method as mentioned in one of the posts above.  You don't get 10 days when you start or even after the anniversary of your start date.  You accrue  it as you work it.  If I had an employee start with me and then 2 weeks later they unfortunately get sick one day, I do not have to pay them for a whole day, they have not worked long enough to have earnt that much.  I may pay them if I think they are going to stay with me and will accrue that much, but I do not have to.

 

If you are going to change the accrual method it would be that sick/personal days are accrued in days, not as hours as it will say on the entitlement report.  Then accrue 0.1923 per pay period for a weekly employee.

 

When they use a day you would then record 1 and need to change the amount paid to what hours they usually work that day times their rate.

 

Nightmare plus and goes to show that the Federal Court judge who made the ruling knows nothing about economics and business!

Julie Carter AIPA, BBus(Acctg),
MYOB Professional Partner, Registered BAS Service Provider
Associate Member of Institute of Public Accountants
Member Association of Accounting Technicians
ph: 0417 927 654 email: accuratebooks7@gmail.com
JAC' of All Trades Bookkeeping (Servicing from Leederville to Pinjarra, Fremantle to Armadale WA)
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