Calculating final pay and paying out accrued Annual Leave

Options
MM_7769277
MM_7769277 Member Posts: 115 ✭
edited February 2018 in Accounts Hosted
Hi all,

If somebody is finishing today and their A/L balance looks like this, how many hours should I pay them out? 52.08 or 52.08 + 2.92? (This person is paid fortnightly, hence 5.84 accrued A/L each week).

image

Comments

  • Shannon Sciuto
    Shannon Sciuto Member Posts: 98 ✭
    edited February 2018
    Options
    I'm pretty sure its 52.08+2.92 - Run a leave report before posting the payroll journal - I'm pretty sure it will tell you they owe 52.08 which means you still have to add the 2.92. 

    I think also you can edit the accrued amount and if you see the available amount changed, that will give you your answer. 

    I hope this helps!! 
  • MM_7769277
    MM_7769277 Member Posts: 115 ✭
    edited January 2017
    Options
    Legend, Shannon. I ran the Leave Accrual Summary and it shows 46.24 which was the leave balance at LAST week's pay run. So I probably need to do 46.24 + 2.92, because the 52.08 would be the A/L balance at NEXT week's pay run (because this employee is on fortnightly pay).

    Thanks for your awesome input!

  • MM_7769277
    MM_7769277 Member Posts: 115 ✭
    edited January 2017
    Options
    Hey, just quickly, if I type in 52.08 I get an error message saying, "Exceeds available hours". How do I get around that?
  • Shannon Sciuto
    Shannon Sciuto Member Posts: 98 ✭
    edited February 2018
    Options
    Glad I could help!!  Have a great weekend :D
  • Shannon Sciuto
    Shannon Sciuto Member Posts: 98 ✭
    edited February 2018
    Options
    Click yes to allow it to go to zero.  

    Otherwise, I would run a scheduled payrun for the last week worked and then do an unscheduled payrun for the termination pay (also makes it easier to modify the tax amounts if necessary) where you won't get that error and you there is no additional leave accrued. 

    Also, on a side note - have you checked out the following link on calculating tax for leave payouts? https://www.ato.gov.au/Rates/Schedule-7---Tax-table-for-unused-leave-payments-on-termination-of-employment/

    Depending on the type of termination pay - you may need to create a separate pay item so that redundancy payments are recorded separately on payment summaries. 

Categories