leave liability

Larisa

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

Kwikbooks (Professional Partner)

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.

Larisa

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

Sonya Herbert

hi, how do you set up for annual leave & personal leave only to accrue on those 38 normal base hours, and not on the overtime hours as well?

Acctd4

Hi @Sonya Herbert

Make sure your overtime Payroll Items do NOT have this checkbox ticked on their last configuration window:

Only tick this for the base-hour Payroll Items that you want leave to accrue on 😊

Sonya Herbert

thank you so much for that.

Sonya Herbert

thank you so much for that. So that box to tick hasn't got anything to do with the super items selected in the box below? super will still apply to the overtime payroll item?

Sonya Herbert

it's only for annual & personal leave? what do you do with a permanent part time person? that accrues al & pl?

Acctd4

It's best practice to set up all leave to accrue for Every Hour. This way, it will accrue proportionally to hours worked (eg FT v PT)

The checkbox just tells the system whether to accrue leave on a particular Payroll Item or not. Super is not payable on overtime hours, only OTE (base hours) so additionally, you would not tick any of the Super Payroll Items for this one either (as also shown in my screenshot) 😊

Sonya Herbert

thank you for your help. I'm just joining the payroll side and trying to get my head around it all when setting up new employee and payroll items. Can i ask a silly question, do you accrue personal or annual leave on Public Holidays, Personal or Annual leave hours you use?

Acctd4

Hi Sonya

Yes, Leave accrues on both public holidays & on leave taken 😁

Sonya Herbert

thank you, i'm also looking for a report to print out that'll show ANNUAL & PERSONAL LEAVE accrued for last Financial Year, and Annual & Personal Leave taken by each employee? Just wanting to make sure the correct amount of leave has been accrued, as the balances seem a bit out on a few; Also does Sick leave accrued BALANCE at the end of each Financial Year, meant to be transferred to the new financial year? or does it go back to 0 and start again.

Kris_Williams

When I feel the need to check leave balances I do it manually

i calculate amount that should have accrued

number of years since start date x. 4 weeks leave (in hours). It will usually be a fraction . 4.25, 6.5, etc x 4 weeks leave based on their weekly hours

then I use the leave taken report and deduct from above figure

this I check with Reckon

Acctd4

You can drill down on the Leave Accrual Summary (under Reports dropdown menu > Employees & Payroll) to view a record of all leave accrued - per pay - for each employee.

Years ago, Sick Leave would reset each year but it carries over each year now (just like Annual Leave) 😁

Sonya Herbert

where do i find the LEAVE TAKEN report?

Kris_Williams

Actually without checking I think that report was removed, however if you go the payroll summary report and select all dates you can see the number of hours taken for leave

Acctd4

The Leave Accrual Summary shows all Leave Accrued, taken (Used) & Available:

As per my previous post, if you drill down on any line for an employee, it will display ALL this detail for that employee each pay:

(Note the above are screen snips from Reckon's default Sample file so the records are incomplete/inaccurate ☺️)

Sonya Herbert

So is that above report from the date the employee started working with us? I can't get a report to show last financial year?

Acctd4

Yes, you can select/specify the dates - or date range - at the top ☺️