Increase in Hours affecting annual leave

krispy
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Increase in Hours affecting annual leave

Hi

I have just found out that an employee had their hours increased last year at 1/3/20 and payroll wasn't advised.  They have been set up as 35 hrs/wk and it was increased to 40 hrs .  Any leave taken since 1/3/20 has been paid at a higher rate due to them working more hours than set up in payroll.  Their anniversary is just about to roll around on the 17th March.  What do I need to do to ensure their annual leave balance is correct at their anniversary.  I have attached a screen shot of the details

 

Thanks

Chris

3 REPLIES 3
jenniek
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Re: Increase in Hours affecting annual leave

Hi @krispy 

What version of MYOB Payroll are you using? - your print screen doesn't show the annual leave in weeks. It should.

You should change the normal hours per day now to 8 which will bring the annual entitlement to 160 hrs (4 weeks)

This will fix the accrual for the last 12 months and give her new entitlement on the new basis on her anniversary date. You will also need to increase her annual leave due to a calculation @ 40hrs per week (143hrs equates to 4.08 weeks - this will need to be increased to 163.20 which is the 4.08 weeks at 40 hrs per week. Regarding the overpayment of annual leave paid since 1/3/20 - I think you would have little chance of getting this back, but a discussion could be had to recoup this cost.

Regards,
Jennie Kingma
JK Business Systems Ltd, Hamilton, NZ
Email: jennie@jkbusiness.co.nz
krispy
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Re: Increase in Hours affecting annual leave

We use MYOB NZ Payroll V2020.1.  Are you saying this isn't compliant?

jenniek
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Re: Increase in Hours affecting annual leave

hi @krispy 

There was a few free updates last year - you should be on 2020.5.1113

If you email me direct - I'll send you a link.

Regards,
Jennie Kingma
JK Business Systems Ltd, Hamilton, NZ
Email: jennie@jkbusiness.co.nz

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