Employee's Leave Entitlements
In this article you will learn:
- How to set up an employee’s leave entitlements; and
- How to add leave pay items to employee’s pay
Settings up employee’s leave entitlements
- From the side menu, select Employees under Payroll.
- Select the employee from the employees list.
- In the Employee’s profile tab, select Leave Entitlements.
- Click on Edit button, and then click on Enable Leave.
- Select the leave accrual start date.
- Then select the Accrual Method.
If you select the Per Pay method, you will need to select the Pay Frequency, that is, if you pay the employee weekly, fortnightly, or monthly. With the Per Pay method, the leave entitlements are accrued per pay, irrespective of the number of hours worked by the employee. If you select Per Hour Worked method, you will need to update the number of full-time hours worked in your industry. The default full-time hours is set to 38 hours perweek.
- The default employee entitlements have been set to annual leave entitlement of 152 hours and Personal/Sick leave entitlement of 76 hours. You can update them if they are different in the industry you operate in.
- You can record any opening leave balances in the labels provided, if relevant.
- Then click on Update button to save changes.
Now, if you go to Pay runs and open the employee’s pay run you should see the leave balance rows appear along with accrued leave automatically estimated for the pay period.
Adding leave pay items to employee’s pay
- From the side menu, select Pay runs option under Payroll. Then click on the Pay runs tab to view the list of pay runs.
- Either open a pay run from the list or click on Add New Payrun to create a new pay run.
- From the list of employees in the pay run, and select the required employee.
- Next, click on the Add Pay Item button, select the Paid Leave and Sick/Carers Leave pay items, then click on the Add button to insert them in the employee’s pay.
- In the Qty/Hrs column enter the hours of leave taken along with the rate per hour in the Rate column, then click on the Save button.
You should see the leave hours taken automatically adjusted from the leave balances.
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