Pay slip showing incorrect Paid Time off 'Available' amount

Question

We use Reckon Accounts hosted for our business.

I am having issues with our pay slips and their ability to show Paid Time off for Annual leave or holiday leave as its called in this program.

For example we have an employee who has taken 2 days annual leave (20 hours) this has been recorded in Holiday YTD Used as 20 hours. The 'Available' column of this employees Paid Time Off accrues fortnightly and so there is a figure of 117.02 hours.

On the following fortnights pay slip, the 20 hours of Holiday YTD used has not been deducted from her Available holiday leave hours, so this figure now of 124.44 hours holiday leave available is incorrect as it is in fact less 20 hours.  I have had to input this manually so that the pay slip is correctly demonstrating how much annual leave she has used and has available.

Is there a way to make sure when I am entering the YTD holiday leave amount that it is deducting them an employees available leave amount?

In addition, this particular employee has HELP debt, which I have ticked in the backend of her employee details in Taxes. Is there a way the pay slip can show that this HELP Debt is being deducted? How do i reassure her other than telling her I have ticked the box, that her HELP debt it being paid?

Many thanks in advance for you assistance.

Acctd4 · Answer

Hi Vanessa

Yes, if you are using the Salary Payroll Item then you need to use the Holiday Salary (or Personal Salary as applicable) when paying them for leave taken.  These are directly linked to their Leave balances & will then increase/decrease accordingly.

When using the Salary Payroll Items, the system will automatically pro rata the pay across based on hours entered eg

If you have leave accruals set to Per Hour (recommended), when employee hours are entered against Salary Payroll Items on a Paycheque, RAH will automatically pro rata the rate so it matches the usual Salary amount.  (In this example the employee's usual salary is $ 2,500 - When entering the applicable hours, the rates are apportioned accordingly to still total this):

NB: The Payroll Items are generic, they shouldn't be duplicated for each Employee (eg the Hourly ... ones should be used for any Employee being paid based on hours worked etc)

Vanessa_10863681 · Answer

Thank you this is all very helpful.

Potentially I am not using the correct Leave Payroll Item Name, I have attached a screen shot. I have blacked out the Item Name as we usually use the employees name here. Lets pretend its  "John Snow" and then their annual salary is $75,000. We have a lot of staff so found it easy to change this to the employees name (which I now realise may be the incorrect thing to be doing).

Are you saying that, instead I use the Item Name "Holiday Salary" & add said employees annual salary in the Annual Rate column? I have opened in the screen shot the Leave Details, assuming I make the change over to the Item Name "Holiday Salary" is the information in the leave details box under Holiday going to be linked? On this screen shot, you will see the Hours available are 163.58 but that actually less 30 hours of leave used. Will this rectify next pay roll then if I make this change over for all our salaried employees to the Item Name "Holiday Salary"?

Hopefully I am making sense!

Acctd4 · Answer

Hi Vanessa

Just to clarify ... are you using the correct Leave Payroll Item (eg "Holiday Hourly" or "Personal Hourly") on the applicable Paycheque when the employee is being paid for paid leave ?   These Payroll Items are specifically linked to the relevant leave type in order to reduce the available hours.

When a (permanent) employee is being paid their regular wage/salary, the leave accrues on this.  When they take some leave, the system only knows that by use of the applicable leave payroll item(s)

Regarding HELP ... The additional amount of tax being withheld towards the HELP debt doesn't get paid against the debt throughout the year.  Instead it's held in a "Pending" capacity until the employee does their tax return.  At THAT point is when their taxable income is determined which in turn, determines if they are liable for a compulsory HELP repayment & how much (It's a percentage on a sliding income scale)   The additional tax they've had withheld for it, offsets this liability (if any) & this either reduces/eliminates their overall tax debt or they receive back any excess as a refund.