annual leave accruing incorrectly

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Trusted Partner sambennett
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annual leave accruing incorrectly

we are having issues with a client who pays payroll fortnightly - the leave accruals in the essentials do not equal what we have worked out manually. 

 

Our manual calculation uses the 7.6923% of hours worked.

 

We are not quite sure where essentials is picking up it's formula.

 

We took the clients payroll since 1st July and replicated exactly in the demo company - and figures matched original essentials figures. Our client had used dates paid from and to that didn't equal a full fortnight, however we also replicated using full fortnight dates, so this did not have any effect.

 

Can you tell us why the figures do not work out? It is not due to rounding, the annual leave is set to 4 weeks prorata. there is no option not to accrue leave on annual/sick leave so it can't be that (and besides the leave accrual is out on fortnights where there is no leave taken) There are no allowances or other pay items other than normal hours/sick/annual leave being used. You can not manually adjust the accrual on payruns.

 

I have attached a file showing our calculations and the essentials payroll calculations.

 

Thank you

 

Samantha

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Trusted Partner sambennett
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Re: annual leave accruing incorrectly

It has been pointed out that the essentials does not accrue leave when the employee works more than 38 hours in a week.

Trusted Partner sambennett
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Re: annual leave accruing incorrectly

This is an issue when you have an award such as the pastoral award, which says that 

"Under the Pastoral Award 2010 ordinary hours are 152 hours worked over a four-week period. Ordinary hours for casuals are the same as for full-time employees."

 

If you work 90 hours one fortnight and 62 the next - you are not breaching the hours under the award, but the essentials will not calculate the accrual hours correctly.

MYOB Moderator Theresa_D
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Re: annual leave accruing incorrectly

Hi @sambennett 

 

Thanks for your posts. I'll link some resources which discuss how Essentials handles this such as Leave Calculations and Managing your employees' leave.  Overall Essentials is a more stripped down version of ARL so doesn't allow as many changes to payroll. 

 

Please let me know if you require further information. 

Cheers,
Theresa

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Trusted Partner sambennett
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Re: annual leave accruing incorrectly

@Theresa_D  Thank you - the link for annual leave refers to New Zealand Essentials.

 

I can not see any mention about capping annual leave accruals in the notes.

 

At this point I will have to tell my clients who have this issue to not use the leave accruals and work them out manually. Single Touch Payroll is a big step for some of them, and when it doesn't quite work properly it causes even more issues.

 

Thank you

 

Samantha

MYOB Moderator Theresa_D
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Re: annual leave accruing incorrectly

Hi @sambennett 

 

My apologies I did not realize the first link was for New Zealand.  I'll link the Aus relevant links below. 

Paying Leave

Set up Leave

 

I understand where you're coming from, STP has been an adjustment for many users.  If you need any additional resources for them please let me know. Apologies for the frustration. 

 

Cheers,
Theresa

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Trusted Partner sambennett
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Re: annual leave accruing incorrectly

Thank you- Samantha

blomerjackson
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Re: annual leave accruing incorrectly

I have found the same as you, haved phoned MYOB and they may as well be up in the clouds with all the '**bleep**' they feed you. BE WARNED ANYONE PURCHASING MYOB ESSENTIALS WHO WANT TO USE PAYROLL- IT IS A NIGHT MARE.

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