Leave Accruals are wrong

Angella

It seems the Leave accruals are based on a full time 38hr week. It is not allowing the set up of a PT employee correctly, for example, the accrual rate for AL is 0.0769...however, for an employee that works less than 38hr, the system increases the leave accrual rate so that it equates to 4 weeks AL. The new upgrade of this system has gone backwards

Lambert Kitchens

I totally agree. I am having trouble with the accruals also.

klaura

Hi Angella,

The calculation may be based on the full-time as this is the default rate, but this is also suitable for part-timers who have varying hours every week. The entitlement is determined on a pro-rata basis, which means that it is based on the number of hours they work compared to a full-time employee. 

Lambert Kitchens

This is my understanding also - the rate for full time and part time employees should be the same if it is based on time worked. Payroll Premier used .0770 (rounded up) for all employees. Reckon Payroll uses .076923 (which is effectively the same).

Angella

@klaura yes, the accrual rate is pro rata for part time employees. However, when setting up employees with less than 38hr, it would increase the accrual rate to make it up to 152hr of leave.

Maybe this bug has now been fixed?

klaura

Hi Angella,

Would you please verify the employee's general information for the Standard hours per week? The accrual rate per hour will be significantly higher based on the default rate if this value is less than 38. 

Lambert Kitchens

If the accrual rate changes for part time staff in Reckon Payroll, why is it different in Payroll Premier? Has payroll premier been accruing annual leave for part time staff incorrectly all these years?

Angella

Hi @klaura , yes that is what I am finding...even if they are PT, you need to put in 38hr as a default so that the accruals are right.

Angella

hi @Lambert Kitchens , in Payroll Premier, you would have set up AL as 0.0769, PL as 0.0384 and LSL as 0.0167...then each employee would accrue based on their hours worked.

but this new payroll system, seems to be a bit backwards with the way you have to set it up.

Lambert Kitchens

Yes Angella, it was set up the way you have said in Payroll Premier and I had no trouble reconciling the leave for full time and part time employees with a spreadsheet using those ratios. But in Reckon Payroll, one of my part time employees (37.5 hrs) has accrued about 4 hours more than my spreadsheet. I am afraid I am having trouble understanding the logic. As for the full timers - even applying the ratio, they are still out! I will be processing another payroll next week to see if there is a pattern in the variances. Not too concerned at this stage as it can be changed once someone from Reckon can categorically confirm that my set up is correct. Watch this space ......

Angella

@Lambert Kitchens , in General Employee Profile, go down to Employment Details/Employment Status section, Edit, and then in standard hours section, put in 38hr even if your employees do not work that many hours. This seems to be the default set up for this new payroll.

When it comes to processing a pay run, the hours that are paid should be accrued at the correct rates.

Lambert Kitchens

I have already done this.

Have just discovered that after my last pay run, a full time employee who worked 38 hours and did not take any leave now has a different ratio showing on his card than before the pay run!!! Before the pay run, I made sure that the accrual ratio was the same for all full time employees i.e.0.076923 (based on 152 hours) per time worked and recorded them. After the pay run, for this employee working 38 hours, the system has now changed the ratio to .076999 (based on 152.15 hours). ALSO, I have checked the accrual ratio on the sick leave and this has not changed from what was shown prior to the pay run. Reckon checked the set up for each employee before the last pay run. This was done before the pay run because I anticipated problems.