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Transferring Employee - Accrued Leave

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Experienced User krispy
26 Posts
Experienced User
New Zealand
krispy
Experienced User

26Posts

2Kudos

0Solutions

Transferring Employee - Accrued Leave

Hi

 

I need to transfer an employee to another company NZ MYOB payroll with our group.  He started with the new company on 27/08/18  (actually started 05/03/18 in old company). I have done this before, but this time he hasn't worked one year yet, so only has accrued leave of around 80 hrs.  How do I set up his leave in the new payroll?  If I enter the accrued leave into 'annual leave due at 27/08/18' I think it will overstate the amount when his anniversary rolls over.  He has been told he can carry over his leave balance to the new entity.

 

Thanks

1 REPLY 1
Ultimate Partner jenniek
2,304 Posts
Ultimate Partner
New Zealand
jenniek
Ultimate Partner

2304Posts

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295Solutions

Re: Transferring Employee - Accrued Leave

hi @krispy

Technically leave cannot be rolled over into a new company - but that's not to say it isn't done at times especially between related entities. You need to convert the leave accrued into hours of annual leave at a rate of pay, then enter this into the annual leave due as at.... as an opening balance. Then the start date should be the new start date and new rollover date will be 12 months from that date (unless you have a common anniversary). be aware though that the leave brought across will be paid at the average of previous 12 months earnings (or part therof) in the new employment and will not be affected by previous employment at all. So effectively could cost the new employer a bit more than what was transferred, and it will cost another 8% HP accrual as Hol Pay is accrued on annual leave taken. Nothing you can do about this - because technically you aren't doing the correct thing anyway.

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