payroll essentials

ford
Trusted User
301 Posts
Trusted User
New Zealand
Trusted User

301Posts

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payroll essentials

An employee is going to work on average between 35-45 hours per week and are on an hourly rate

I am not sure whether to set the annual entitlement to weeks pro-rata or hours fixed at 160. I chose 160 hours because it says the weeks pro-rata is not recommended. I have the set the employee's status to full time with an hourly rate and I entered 40 hours per week over 5 days.

 

Because the number of hours a week could be between 35-45 maybe I should choose the week-pro rata?

 

Thanks

Ford

 

 

1 REPLY 1
Steven_M
MYOB Moderator
40,166 Posts
MYOB Moderator
New Zealand
MYOB Moderator

40,166Posts

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Re: payroll essentials

Hi @ford 

 

Due to the way the calculation and the leave system in New Zealand does work, the weeks (pro-rata) option is not recommended to calculate leave accurately. 


To calculate leave accurately we do recommend the hrs/year (fixed) option for annual leave. The reason for this to manage annual holidays for your employees you need to ensure you have an agreement with them on what a work week means. This value can be multiplied by the number of weeks of annual leave a year to determine the hours/year that the employee is entitled to.

Kind regards,
Steven

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