Re accrued leave amount on Annual leave loading

ROB PAYNE
ROB PAYNE Member Posts: 25 Reckoner Reckoner
in Reckon Payroll

I would like to know how Reckon one payroll is calculating leave accrual amounts on the 17.5% leave loading on annual leave — when i do a reconciliation for one employee I dont get the correct amount calculated as accrued

Comments

  • ROB PAYNE
    ROB PAYNE Member Posts: 25 Reckoner Reckoner
    Tarryn wages hours.xlsx

    here is the spreadsheet with calculations and the amounts calculated and reconcilled with Reckon one payroll only changes after this employee takes annual leave 1/11/2022

    It means that this employee on Reckon has more than 3.65 hr accumulated annual leave compared with my calcualations and 1.8 hrs more of personal leave

    If I was to check this on all our 22 employees then the errors could amount to 100 hours and quite a cost

    Please advise

    thanks

  • Tanvi_kataria
    Tanvi_kataria Reckon Staff Posts: 346 Reckon Staff

    Morning @ROB PAYNE

    Regarding your concern with the incorrect leave accrual. It could be possible that there are some settings which needs to be checked.

    If you can DM me the Email address and Name of the Book, I can have a look for you. However, I will be checking for the settings of the software and suggest you if any changes are required to be made. Thank you!

    Regards

    Tanvi

  • ROB PAYNE
    ROB PAYNE Member Posts: 25 Reckoner Reckoner

    I think the settings are right

    I need to know how the calculations are done at Reckon end as the leave loading is a 17.5% rate not an hourly rate … so I don’t understand how this is calculated … please advise

  • klaura
    klaura Reckon Staff Posts: 247 Reckon Staff
    edited May 28

    Hi ROB PAYNE,

    Annual leave loading is an additional payment made to an employee when they take the leave.

    The calculation is based on employee's base pay or hourly rate by the agreed-upon loading rate (e.g., 17.5%). At a 17.5% annual leave loading, for instance, an employee's hourly rate of $50 would pay an extra $8.75 for an hour of annual leave taken.

    I hope it helps.

    Karren

  • ROB PAYNE
    ROB PAYNE Member Posts: 25 Reckoner Reckoner

    ok I get that but then how is the accrual of leave calculated ? On this loading ?

  • klaura
    klaura Reckon Staff Posts: 247 Reckon Staff

    Hi ROB PAYNE,

    It is accumulated based on the accrual rate you have under the employee Leave set up.

    The annual entitlement is divided by the total number of working periods (weeks or days) in a year. This provides you with the accrual rate, which shows how much leave a worker accrues each pay period.

    image.png

  • Nickiu
    Nickiu Reckon Staff Posts: 175 Reckon Staff
    edited May 28

    @ROB PAYNE ,

    Check this out, This might be helpful.

    https://library.fairwork.gov.au/viewer/?krn=K600323

    Cheers,

    Nick

  • ROB PAYNE
    ROB PAYNE Member Posts: 25 Reckoner Reckoner

    Ok

    All of this doesnt answer the question

    If an employee gets 17.5% loading the loading amount - this amount accrues leave — but this is % amount not an hourly amount and this would accumulate leave at what ?? rate — my calculations do not compute

    see below for errors

    • yellow highlighted are correct on the 28/6/2022 and 20/9/22 and match Reckon payslips
    • red highlights - after employee takes annual leave - my calculations —DONOT match reckon calculations
    • this then lead to a difference after a year of quite a few hours and for 20 plus employees this amounts to a lot of money
    image.png

    Surely there must be formula that Reckon one uses ??

  • klaura
    klaura Reckon Staff Posts: 247 Reckon Staff

    Hi ROB PAYNE,

    Leave loading does not accrue leave.

    By default,Reckon uses this calcualtion, assuming a 38-hour workweek, is equal to 152(annual entitlement) hours divided by 52 weeks, divided by 38(hours per week) is equal to .07692 (accrual rate) hours per hour. Personal leave is half of that. Other people may compute it in a different method.

    In the example you provided, for 10 hours of work multiple by .07692 is equal to .7692 accrued annual leave for that period.

    If it's not calculating as it should, you can check the accrual rate in your employee's file.

    Best regards,

  • ROB PAYNE
    ROB PAYNE Member Posts: 25 Reckoner Reckoner

    Ive just been in touch with our HR advisers and they have advised that there is NO accrual of leave on annual leave loading …. therefore there is so problem with the calculations in Reckon for the leave loading as you can see from the spreadsheet

  • klaura
    klaura Reckon Staff Posts: 247 Reckon Staff

    Hi ROB PAYNE,

    Leave loading and leave accrual are not the same. Leave loading is applied as an additional payment (17.5%) when annual leave is taken, it does not accrue leave.

    If you need further assistance, don’t hesitate to call the Reckon support at 1800 732 566.

    Best regards,

    Karren

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