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I have just started working for an employer who uses MYOB Essential for payroll. His employees are permanent employess working 40 hour weeks with OT (Construction industry). Currently their leave accruement is set in the "Pro Rata" field at 4.0 weeks. My question is- should their leave accruement actually be set in the "Fixed" field rather than the pro rata field.? As its currently set in the pro rata field (but at 4.0 weeks) are they also accruing leave on their OT hours ( Which they shouldnt be) ?. I have only had experience with Account Right so am just learning the ins and outs of Essentials.
Any advice would be apprecitated about the above.
Solved! Go to Solution.
MYOB Essentials allows for the user to calculate annual leave based on two calculations: pro-rata or fixed. Typically with MYOB Essentials, you would use pro-rata as it will calculate based on the amount an employee does work rather than having a fixed amount (which will not factor when an employee works fewer hours).
I should also note that MYOB Essentials works on the maximum weekly hours work for Australia which is 38 for an employee, so if you are paying more than 38 hours i.e. 40 normal hours those additional hours are not included. If you are needing to include those additional hours, you would set up a new earning for 'overtime' hours and at which point you can set whether to have them be included in the leave calculations. You can set a new earning for an employee by navigating to the employee, selecting Pay items - earnings & deductions, Add earning...>>+ Create new earning.
What this above process will do is allow you to set that an employee's normal hours are 38 and they have 2 'overtime' hours. If you have enabled Leave on the 'overtime' hours earning you will also have leave calculated on those hours as well as the Normal hours.