leave liability

LarisaLarisa Member Posts: 17
edited April 11 in Accounts Hosted
Hi, its been a long time since I first set up employee records and I was wondering if someone can tell me what does the "leave liability" tick box do.  I have it ticked but I cannot remember why or whether it actually should be ticked.

The other question I have is in regards to accrual period, I have it set to every hour, but should staff be accruing annual leave for overtime hours? 

Thanks
Larisa

Comments

  • Kwikbooks (Professional Partner)Kwikbooks (Professional Partner) Member Posts: 876
    edited April 11
    Hi Larisa

    Leave liability tick means you are tracking leave and it will show up when you process the payroll.

    Leave is only accrued on ordinary base hours, not overtime.  Usually a permanent 38hr or 40hr week will accrue leave per pay period, worked out if on a 7.6hr day or 8hr day.

    Perm Part time is often a good idea to leave as every hour work, this means if they do more than there regular set hours, they will still get leave for the extra ordinary hours they worked.


  • LarisaLarisa Member Posts: 17
    edited March 2018
    Thanks for the reply, good to know that the tick on leave liability should be there. I was worried it affected the staff's leave in a negative way. Much appreciated. Regards Larisa
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