Unused Annual Leave and Unused Long Service Leave paid on termination

[PSHAH2]

In the last pay run for an employee I paid the Unused Annual Leave and Unused Long Service Leave based on the entitlement report. However when I generate the entitlement balances for Annual Leave (AL) and Long Service Leave (LSL), the total hrs for both AL and LSL paid have been deducted from AL for that employee. How do I proceed to get the actural AL hrs and LSL hrs paid to that the entitlement balance reports to reflect accurate hours for that employee (meaning zero hrs). Currently AL entitlement balance shows a negative and LSL entitlement balance shows the hrs.

Thanks

[Tracey_H]

Hi @PSHAH2 

Thanks for your post. From what you've described it sounds like the Linked wages category has been incorrectly set up for the Annual leave accrual and LSL accrual payroll categories. Go to Payroll Categories>>Entitlements tab>>open the Annual leave accrual payroll category>>click on the dropdown arrow in the Linked Wages category field and check in Unused LSL is ticked.

The entitlement balance is reduced by hours paid against the payroll categories selected in that field. This means that if Unused LSL is ticked in the Annual leave accrual, any hours paid for Unused LSL will reduce the Annual leave balance. Unused LSL should be ticked in the LSL accrual payroll category to reduce the LSL balance.

To fix the entitlement balances now you can process a $0 adjustment pay, make sure all amounts/hours are zeroed out and enter the adjustment hours against each of the entitlement payroll categories. Entering a positive number of hours increases the entitlement balance and a negative reduces the balance. The Help Article, Adjusting leave balances, has more information on this.

If you have entered termination details in the employee card you will need to remove these before processing the adjustment pay. You can re-enter them once the entitlement balances are correct.

Please let me know if you need further help.

If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

[PSHAH2]

Hi Tracey

Thanks for your guidance. 

[Tracey_H · Accepted solution]

Hi @PSHAH2 

Here is an example of an adjustment pay to change the leave balances.  This is the entitlement balances before the adjustment pay:

In the pay transaction I've zeroed out all amounts and hours (don't forget super and any other accruals) then entered the adjustment hours as a positive against the Annual leave accrual entitlement and a negative against the LSL accrual entitlement:

After recording that pay transaction the Annual leave balance has increased by 45 hours and the LSL balance has decreased by those hours:

Let me know how you go.

If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.