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Set up New Type of Leave

OMICAdmin

When you set up new payroll items - Leave ( Summer Holiday Leave) which does not accrue any hours. In that case where do I select below.

If I select, holiday pay which is annual leave, would it accrue as annual leave entitlement? if so, what do I pick???

Please assist.

Kaoru

Accepted answers

Kris_Williams

if you go all the way to the end of the new leave type, selecting holiday, there’s a window to untick, accrues leave and qualifying earnings. Probably need to tick the latter though, depends on that award

Acctd4

Hi @OMICAdmin

No, it doesn’t reduce entitlements.

That checkbox is specific to each one individually, so it should just be ticked on the Annual & Personal Leave payroll items themselves (so that those ones accrue) 😁

All comments

Acctd4

It depends on what it’s for &/or how it’s granted ….What is “Summer Holiday Leave” ? 🤔

OMICAdmin

So it's additional paid leave - which eligible to full-time employees may access up to 3 days during summer month (Dec - Feb) per year in addition to the annual leave entitlement. Also may not to carried forward to another year, cannot be cashed out, no monotary value if not taken nor be paid out on termination of employment.

It's kind of holiday pay but if I tick on " Holiday " I beleive it will accrue so I need to avoid that but which other option? that I need to know….

Thanks

Kaoru

Kris_Williams

OMICAdmin

Thank you, Kris. I got it. I will untick the leave accruals but not the qualifying earnings.

I will still keep eye on this when this new leave applies this summer.

Regards,

Kaoru

Acctd4

@OMICAdmin The correct pay/leave type selection in that window is crucial because:

That selection is only available at initial setup of the payroll item (you cannot access it again afterwards!)
Linking here is what drives the leave tab movements (eg increases/decreases of hours balances)

You are correct in that if you link your Summer Holiday Leave to the Holiday Pay selection in that window, this will incorrectly impact THAT leave accrual!

NOTE: By just unticking … accrues leave, it won't accrue … BUT it will still incorrectly reduce the Annual Leave balance when Summer Holiday Leave hours are taken! Unless otherwise specified in the relevant Award, any paid leave - taken whilst employed - is considered QE.

The employee Leave tabs are specifically for tracking leave that accrues. Therefore, I wouldn't set up Bereavement Leave there either, as that one's an automatic entitlement (not "earnt", based on an employee's hours worked/employed)

Kris_Williams

I’m so sorry @OMICAdmin to give you a bum steer - follow @Acctd4's advice

Kris_Williams

Can’t you just create a normal hourly pay rate called summer holiday that doesn’t accrue leave, if it’s only 3 days it shouldn’t be too hard to track - just a thought!

OMICAdmin

Thank you, Shez@Acctd4 and Kris.

I still have a question. Now I am going to process this Summer Holiday Leave as Regular pay and will tick on " Include in every hour worked leave accruals" due to extra leave entitlement besides the personal and annual leave. Now I am not sure Tax tracking type can be " other paid leave(O)" I hope this is the last question.

Thanks

Acctd4

Hi @OMICAdmin

It doesn’t accrue as you’ve said it’s an automatic entitlement. Therefore, that “Include in every hour worked leave accruals" checkbox needs to be UNTICKED.

Yes, it should be mapped to Leave - Other Paid Leave (O) for STP 😁

OMICAdmin

Hi Shaz @Acctd4,

I thought the same but if I untick, does the hour affect personal leave and annual leave hours as calculate less hours on these entitlement?

Annual personal leave hours (10 days) and annual leave hours (4 weeks) should be the same not 3 days less entitlement hours? Am I thinking too much?

Thanks

Acctd4

Hi @OMICAdmin

No, it doesn’t reduce entitlements.

That checkbox is specific to each one individually, so it should just be ticked on the Annual & Personal Leave payroll items themselves (so that those ones accrue) 😁

OMICAdmin

Thank you, Shaz@Acctd4.

All sorted now. Have a nice day 😊

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