Annual Leave when paid monthly

BJAccounts

Hi. I have a business where the staff are paid once a month. It is usually one twelfth of the annual salary, but there are sometimes variations.

How do you enter the annual leave entitlement? I assume the accrual period is "per pay period", but what do I put in the "hours accrued per pay" as they are not paid hourly.

Staff often take a few days here and there, rather than weekly blocks.

I have always kept a spread sheet separately to manage this, but would like it to be done within Reckon.

Zappy

If you use hours per month you can accrue 7.6924% of the hours work. Or you can use 7.6924% of the contract hours. Call me if you get stuck 0407744914

BJAccounts

I don't put anything in the hours column. But I just tried that and it doesn't create any accrued hours.

As the Payroll item is a Salary, not an hourly rate, and paid monthly, I can't seem to get anything to appear in the accrued leave - even if I edit the amount accrued per hour.

Zappy

So why dont you set up the leave as an annual entitlement? And decrement it when you take leave? Call me if you get stuck

Zappy

Acctd4

Leave should not be accrued annually - it is earned as worked, otherwise an employee either would have 12 months worth (incorrectly) available in advance or (also incorrectly) wouldn’t have any leave accrued before 12 months.

Best practice is always hourly, to allow for changes in hours worked affecting entitlement.

@BJAccounts Check that you have the “Maximum number of hours” BLANK in the employee’s record.

Zappy

Acctd4 that's not correct. The last place I worked our leave was credited annually on our service anniversary. Doesnt matter if it conforms with the alleged law.

Acctd4

What is legally correct (as stated above which is both as per Fair Work & state legislation) & what an employer actually does can unfortunately be contradictory 😖