RDO's and Annual Leave and personal leave accrual

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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 or personal leave accrual should be reduced by 8 hours to allow for 0.4 hours to be banked into their RDO hours, I am not sure how this is done. The payslip shows 7.6 and the hours accrued are reduced by 7.6 instead of 8??

 

Please help

Thank you

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Re: RDO's and Annual Leave and personal leave accrual

Hi @Amanda7875 

 

On the payslip and within AccountRight, the leave accrual will be reduced by the number of hours put into the linked wage category or categories depending on your setup. So if you needed to reduce the accrual by 8 hours then 8 hours would need to be entered into the linked wage categories. If a smaller number was entered, such as 7.6 then this would only reduce the accrual by that amount.

 

If a portion of the wage was going into another category like RDOs then just as you handle the RDO in the regular payroll you can do the same with the paid out leave

Regards,
Neil

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Re: RDO's and Annual Leave and personal leave accrual

Good Morning Neil

 

I understand what you are saying but I need to reduce the annual leave accrual by 8 hours, pay the employee 7.6 and bank 0.4hours into the RDO accrual, how do you suggest I set this up in my system?

 

If I only reduce the annual leave accrual by 7.6 and still bank the 0.4 in the RDO accrual the employee is essentially getting 0.4 hours for nothing.

 

Please advise

Thank you

Amanda

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Re: RDO's and Annual Leave and personal leave accrual

Hi Neil

 

Thank you for your quick response. I am still confused though, if I reduce the A/L by 8 hours and pay 8 hours and an employee has a full working week off I would be paying him 40 hours instead of 38?

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Re: RDO's and Annual Leave and personal leave accrual

Hi @Amanda7875 

 

As the leave being paid out is just another payroll category, no different than what they are normally paid on (excluding the linking to the entitlement).  So all you are doing is substituting one wage category for another on the pay, and treating the RDO that they earn in the same way. As long as 8 hours was recorded against the linked wages category that would reduce the entitlement by 8 hours

 

 

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Neil

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Re: RDO's and Annual Leave and personal leave accrual

Hi Neil

 

But then I am paying 40 hours to the employee instead of 38 and they still get 2 hours RDO accrual. 

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Re: RDO's and Annual Leave and personal leave accrual

Hello Again Neil

 

I believe it would be easier if I paid them 7.6hours and deducted 0.4 from the RDO Accrual manually.  It just means that when they have a few weeks off they are not accruing for the pending RDO therefore will almost always have a negative accrual figure for RDO's.

 

Sorry for the constant what ifs but it is not clear to me and the last thing I want to do is pay my employees incorrectly.

 

Thank you

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Re: RDO's and Annual Leave and personal leave accrual

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
Attachment.PNG

 

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.

Kind regards,
Steven

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