RDO Accrual

0407014838
0407014838 Member Posts: 4

Does anyone have employees on a 38 hour week that accrue RDO's?

Have set up the 'Other Leave 1' as RDO and changed the Company Preferences to reflect this.

That part was easy!

However, when I pay this employee weekly, do I pay ordinary hours as 36.1hrs and accrue 1.9hrs/week for RDO? (based on 1 x RDO per month/4 weeks). Then pay monthly 7.6hrs as RDO.

Thanks in advance.

Carli :)

Answers

  • Acctd4
    Acctd4 Accredited Partner Posts: 3,325 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert

    Hi Carli

    What hours do they actually work in order to accrue this?

    eg a 40-hr week employee might work 42 hrs & accrue 2 hrs p/wk toward their RDO. In this case, you would enter “40” then on the 2nd (RDO) line, you would minus off that additional 2 hrs to “bank” it so their payment is for the 40 hrs ☺️

    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

    [email protected]

    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!)
  • 0407014838
    0407014838 Member Posts: 4

    Thanks Shaz. That's helpful.

    Would it be wise to set up two payroll items. One for RDO accrued (minus hours) and one for RDO taken?

    Also what tax tracking should they be? Leave - Other Paid Leave (O)?

    Thanks

    Carli

  • JudyA
    JudyA Member Posts: 55 ✭✭✭

    Hi Carli,

    I use the method described above by Shaz. I have separate payroll items for RDO - Deduct and RDO - Taken. Our employees work a 40 hour week and accrue 4 hours (or 0.1 of an hour per hour) of those towards their RDO's.

    So on a week that they work 40 hours and accrue 4, I use the RDO - Deduct payroll item to input minus 4 hours to bring them back to 36 hours. The only issue I have found with the introduction of STP2, is that I now need two Deduct payroll items. Otherwise it doesn't account for RDO accrual when on leave.

    I have RDO Deduct - Ordinary hours for normal working hours and public holidays. Tax tracking to Gross payments. I also have RDO Deduct - Other paid leave for annual leave, sick leave etc. Tax tracking to Other Paid Leave (O). It's a bit messier, but my figures match up with the STP lodgements. I do also run a simple excel spreadsheet payroll to double check these figures.

    On a week where they take an RDO, they have 32 ordinary hours; 8 hours RDO - Taken; -3.2 hours RDO Deduct - Ordinary hours; and -0.8 hours RDO Deduct - Other Paid Leave. If there is also annual leave or personal leave used that week, then the amount of RDO Deduct - Ordinary hours decreases proportionally and the RDO Deduct - Other Paid Leave increases.

    I hope you can make sense of the above. ☺️

  • Acctd4
    Acctd4 Accredited Partner Posts: 3,325 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
    edited February 1

    @0407014838

    Yes, Leave - Other Paid Leave (O) is the tax tracking type for RDOs.

    (Note: There's a separate Tax Tracking Type for RDOs that are CASHED OUT so if you ever have that scenario, just set up a 2nd one - exactly the same configuration for the other settings - but to the Leave - Cash Out Leave (C) Tax Tracking Type)

    Personally, I just use the one Payroll Item for both, with a MINUS to accrue:

    & as a POSITIVE when taken:

    This tracks the RDO hours Available balance nicely. However, it doesn't display in the Accrued 😬

    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

    [email protected]

    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!)