Forum Discussion

sarahh02's avatar
sarahh02
Experienced User
5 years ago
Solved

Setting up Annual leave for a salaried employee in MYOB Payroll 2019.1

Hi there, i have a new employee started who will be paid monthly on an annual salary.  I understand the pay code should be set to days and that pay default quantity should be 21.75 days.  How do i e...
  • jenniek's avatar
    jenniek
    5 years ago

    Hi sarahh02 

    You would adjust the SAL code amount by the $ amount of leave taken (whether that be sick leave of annual leave etc) - so that the total amount paid ids the same. However this would differ if the employee gets a bonus, or extra pay for some reason - which forms part of gross earnings. This will increase the average rate of pay for annual leave - so the employee could well be paid a bit more when he takes leave.

Steven_M's avatar
Steven_M
Former Staff
5 years ago

Hi sarahh02 

 

Annual leave in New Zealand is paid out the average weekly earnings or ordinary weekly pay whichever one is higher. As such you want to ensure that the ordinary weekly pay is set up correctly i.e. you have the normal hours/days the employee works in the Pay Defaults/totals. It would also be good to ensure that you have the required amount of normal days a week the employee will work in the Leave details to ensure that the correct amount of days leave will be available for that employee (at their entitlement anniversary).

 

Public holidays are based on whether they work or not during that pay and whether it's their normal day or not. NZ Payroll Support Notes: Public Holidays and employee entitlements & Statutory (public) holiday payments good ones to look into in regards to payment and what you should be paying in relation to those public holidays.

  • sarahh02's avatar
    sarahh02
    Experienced User
    5 years ago

    Thanks Steven_M so am i to understand that the annual leave is paid over and above the monthly salary, which is based on the 21.75 days per month that he will work.  Or am i to adjust the number of days he actually works by the amount he was on leave? 

    Cheers

    Sarah

    • jenniek's avatar
      jenniek
      Ultimate Partner
      5 years ago

      Hi sarahh02 

      You would adjust the SAL code amount by the $ amount of leave taken (whether that be sick leave of annual leave etc) - so that the total amount paid ids the same. However this would differ if the employee gets a bonus, or extra pay for some reason - which forms part of gross earnings. This will increase the average rate of pay for annual leave - so the employee could well be paid a bit more when he takes leave.

    • Steven_M's avatar
      Steven_M
      Former Staff
      5 years ago

      Hi sarahh02 

       

      Generally, you would work out the number of days/hours the employee has taken leave and then adjust the Enter Pays window accordingly for that. However, it is best to speak to Employment NZ or a similar organisation to clarify if that leave will be ontop of the existing salary package.