Transferring Employee to new company

[Zest]

Hi.  

Have just started up a new seperate payroll and need to transfer an existing employee to the new company. I have found a previous post which is helpful, but I'm stuck on what you mean by  "You can however transfer them with opening balances of annual leave (not holiday pay) and sick leave and use their anniversary date as the new start date. You would need to convert all holiday pay owing from the old company to hours of annual leave".

Can you clarify what you mean by using their anniversary date as the new start date? e.g. if they started 3 years ago on 13 August, it seems odd to put 13/08/12 on the Employment Details page.

On the Leave Details tab, do you leave the Gross Earnings since 13/08/14 blank, so that there's no Holiday Pay Due, and then just tutu around with the hours in the Annual Leave Due as at 13/08/14 box so that the total amount $ due of both Annual Leave and Holiday Pay at the bottom right box agrees with the $ old payroll.  Because also, to make things difficult, the employee is working different hours in the new company and at a different hourly rate.

I am attaching a screen shot of old payroll and what I've done with the new one.

Many thanks, Diane

[Steven_M]

Hi @Zest 

To be 100% correct, to transfer an employee from one file to another, you would take the last 12 months worth of payroll history  and also the Current Annual Leave Due from the old file.  You would then setup the employee's record in the new file, enter the 12 months worth of history and add in the Current Annual leave Due. It seems like you have done it a different way which is perfectly alright.

In regards to the new start date. it is up to you as to what start date that is entered. The key thing to note would be whatever you entered as the start date the anniversary date needs to be set to be 12 months after for the date and month (the year would be set according to when it falls in the current year). For example if I set the start date to be 13/08/2011 the next holiday anniversary date needs to be 13/08/20xx (probably 13/08/2014).

The Gross earnings would have been entered manually and also you would need to enter in the Holiday Pay due to make sure that is 8 % of the Gross earnings. As to the Annual leave rate, you can enter this history via Tools.>>Enter History. I would be entering in the last 12 months worth of history. As annual leave is calculated on the average weekly earnings over the last 12 months and the ordinary weekly pay. If you don't enter that history the annual rate may be incorrect and therefore the total dollar paid for annual leave may be incorrect thus not making the transfer accurate. So entering the history would be the best idea going forward to making sure that you have the correct total leave available in dollar value.

[jenniek · Accepted solution]

Hi there @Zest 

The old and new payslip looks good and the $ value has been transferred across and is now all owing as annual leave. As to the start date, I would be making the date of change over the start date as you want Hol pay of 8% to accrue from that date when the earnings start in the new company. If you have an older date the entitlement will not be correct at the next rollover. Basically you have converted all his entitlements to annual leave as at changeover, then he would receive another entitlement at 12 months anniversary from the changeover date - so this should be his new start date.