Accrue Annual Leave 2.92 time on Employee Final pay.

MTS
MTS Member Posts: 17 Reckoner Reckoner

When completing an Employees final pay cheque, do you accrue Annual Leave 2.92hrs ?

or do you press the "Do not accrue hours" button ?

Comments

  • Acctd4
    Acctd4 Accredited Partner Posts: 3,747 Reckon Accounts Hosted Elite Expert Reckon Accounts Hosted Expert

    It’s best practice to accrue all leave Every hour (rather than Every Pay) to ensure accruals remain accurate for any fluctuations in hours worked.

    What does this final pay consist of ? Any hours worked or just payout of AL entitlements ? If it’s just AL entitlements, leave doesn’t accrue on leave paid out on termination so in that case, you would tick the “Do not accrue …” checkbox.

    NOTE: Under STP, Leave paid out on termination needs to be reported separately (to leave taken) so make sure you have a new Payroll Item set up for this ☺️

    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    *** Reckon Accredited Partner (AP) Bookkeeper - specialising EXCLUSIVELY in Reckon Accounts / Hosted ! ***

    * Regd BAS Agent (No: 92314 015)* ICB-Certified Bookkeeper* Snr Seasonal Tax Consultant since 2003 *

    Accounted 4 Bookkeeping Services

    Ballajura, WA

    shaz@accounted4.com.au

    https://accounted4.com.au

    (NB: Please give my post a Like or mark as Accepted Answer if I have been able to resolve your query as this helps others when seeking solutions!)
  • MTS
    MTS Member Posts: 17 Reckoner Reckoner
    edited October 2023

    Thank you for the reply.

    I did his final weeks pay on the same payslip as his unused annual leave.
    So maybe i should not have ticked the "Do not accrue hours" button ? so it would calculate correctly.
    I am finalising his LSS, can i add the 2.92hrs to the payslip with his annual leave?
  • Acctd4
    Acctd4 Accredited Partner Posts: 3,747 Reckon Accounts Hosted Elite Expert Reckon Accounts Hosted Expert
    edited October 2023

    Leave only needs to accrue on his normal hours actually worked so yes, untick this on the normal pay.

    if you’re paying out the Leave entitlement separately, your new ‘Leave payout on Termination’ Payroll Item should be configured not to accrue leave on this anyway.

    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    *** Reckon Accredited Partner (AP) Bookkeeper - specialising EXCLUSIVELY in Reckon Accounts / Hosted ! ***

    * Regd BAS Agent (No: 92314 015)* ICB-Certified Bookkeeper* Snr Seasonal Tax Consultant since 2003 *

    Accounted 4 Bookkeeping Services

    Ballajura, WA

    shaz@accounted4.com.au

    https://accounted4.com.au

    (NB: Please give my post a Like or mark as Accepted Answer if I have been able to resolve your query as this helps others when seeking solutions!)
  • MTS
    MTS Member Posts: 17 Reckoner Reckoner
    Thank you.
    So to confirm, I am finalising his LSS on Wednesday, can i add the 2.92hrs for the short fall of the annual leave to the same payslip as his LSS to balance it out?


  • Acctd4
    Acctd4 Accredited Partner Posts: 3,747 Reckon Accounts Hosted Elite Expert Reckon Accounts Hosted Expert

    @MTS What is "LSS" ?

    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    *** Reckon Accredited Partner (AP) Bookkeeper - specialising EXCLUSIVELY in Reckon Accounts / Hosted ! ***

    * Regd BAS Agent (No: 92314 015)* ICB-Certified Bookkeeper* Snr Seasonal Tax Consultant since 2003 *

    Accounted 4 Bookkeeping Services

    Ballajura, WA

    shaz@accounted4.com.au

    https://accounted4.com.au

    (NB: Please give my post a Like or mark as Accepted Answer if I have been able to resolve your query as this helps others when seeking solutions!)
  • MTS
    MTS Member Posts: 17 Reckoner Reckoner

    Sorry typo, meant to say LSL (Long Service Leave)

  • Acctd4
    Acctd4 Accredited Partner Posts: 3,747 Reckon Accounts Hosted Elite Expert Reckon Accounts Hosted Expert
    " ... So to confirm, I am finalising his LSS on Wednesday, can i add the 2.92hrs for the short fall of the annual leave to the same payslip as his LSS to balance it out ..?"

    Well I guess so ... but it might not be the correct amount - Is the LSL payout for exactly the same number of LSL hours as his final pay for hours worked ??? (This is why leave should be set to Every hour 😬 )

    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    *** Reckon Accredited Partner (AP) Bookkeeper - specialising EXCLUSIVELY in Reckon Accounts / Hosted ! ***

    * Regd BAS Agent (No: 92314 015)* ICB-Certified Bookkeeper* Snr Seasonal Tax Consultant since 2003 *

    Accounted 4 Bookkeeping Services

    Ballajura, WA

    shaz@accounted4.com.au

    https://accounted4.com.au

    (NB: Please give my post a Like or mark as Accepted Answer if I have been able to resolve your query as this helps others when seeking solutions!)
  • MTS
    MTS Member Posts: 17 Reckoner Reckoner

    Employee is salary earner, would it be easier to undo last payslip and undue the "Do not Accrue Time" Button.

    re apply the correct hours and pay the difference.

  • Acctd4
    Acctd4 Accredited Partner Posts: 3,747 Reckon Accounts Hosted Elite Expert Reckon Accounts Hosted Expert
    edited October 2023

    Yes, I think that would be simpler 😊

    Are you also paying out any AL entitlement ?

    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    *** Reckon Accredited Partner (AP) Bookkeeper - specialising EXCLUSIVELY in Reckon Accounts / Hosted ! ***

    * Regd BAS Agent (No: 92314 015)* ICB-Certified Bookkeeper* Snr Seasonal Tax Consultant since 2003 *

    Accounted 4 Bookkeeping Services

    Ballajura, WA

    shaz@accounted4.com.au

    https://accounted4.com.au

    (NB: Please give my post a Like or mark as Accepted Answer if I have been able to resolve your query as this helps others when seeking solutions!)