Pay increase on annual leave, halfway through pay period

Kyla JKyla J Member Posts: 6
edited January 2020 in Accounts Hosted
An employee received a pay rise halfway through the fortnightly pay period, and also took annual leave in that period. I need to pay the employee 4 normal days and one AL day at the old rate, and 5 days AL at the new rate. Reckon won't let me edit the salary amounts in the paycheque as there is more than one payroll item (Salary and Holiday). How do I fix this? (Using Accounts Hosted)

Comments

  • Acctd4Acctd4 Accredited Partner Posts: 899 ✭✭✭
    edited January 2020
    Hi Kyla

    Am not sure if you are actually referring to "Salary" or "Hourly" here, as they are treated differently ?

    Unlike an Hourly Rate, a "Salary" is an annual figure divided by the number of pay periods in the Financial Year.  This base amount can only be changed by editing the annual amount on the employee's record (which is what should be done upon Salary increase)

    To correctly record AL days that are part of a "Salary"-type Pay, you need to use the "Hol Salary" Payroll Item as this will allow correct apportionment/reduction of Leave accrual.

    A Pay increase is usually effected as at a Pay Date rather than a Pay Period, meaning you simply update the annual Salary amount before this Pay Run & pay it all under the new rate.

    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    Reckon Accredited Partner (AP) Bookkeeper * Regd BAS Agent (No: 92314 015) *

    ICB-Certified Bookkeeper * Seasonal Tax Consultant since 2003

    Accounted 4 Bookkeeping Services

    Ballajura, WA

    0422 886 003

    [email protected]

    https://www.accounted4bs.com/

  • Kyla JKyla J Member Posts: 6
    edited November 2019
    Hi
    Thanks for your quick response. Yes I was referring to Salary, and amend increases in the employee record. I use the Holiday Salary item for leave. The issue is the salary increase was negotiated to be effective 1 Oct. The pay period is from 22 September to 6 October, with most of the AL days taken after 1 Oct. As you said above, if I change the salary amount before this pay run it will calculate it all under the new rate.
  • Acctd4Acctd4 Accredited Partner Posts: 899 ✭✭✭
    edited October 2018
    Hi Kyla

    So then technically, the first Pay date after 1 October should all be paid at the new Salary Rate, regardless of pay period days being pre or post this date. 

    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    Reckon Accredited Partner (AP) Bookkeeper * Regd BAS Agent (No: 92314 015) *

    ICB-Certified Bookkeeper * Seasonal Tax Consultant since 2003

    Accounted 4 Bookkeeping Services

    Ballajura, WA

    0422 886 003

    [email protected]

    https://www.accounted4bs.com/

  • Kyla JKyla J Member Posts: 6
    edited October 2018
    Technically could be right, but what they have agreed between themselves is that one week will be old pay and one week will be the new pay.
  • Richard WhippconRichard Whippcon Member Posts: 2
    edited November 2019
    What was the outcome?

  • Richard WhippconRichard Whippcon Member Posts: 2
    edited November 2019
    I have the same issue,  I just did an deduction for the difference, which does not seem correct.  Can someone shed some light on this?  Salary Payroll Items don't seem to be as flexible to work with that Hourly Payroll Items
  • Tian LanTian Lan Member Posts: 51 ✭
    edited January 2020
    We are having the same issue here. All pay increase effective 1st Jan. but our payroll period is from 30 Dec to 10 Jan, 2 days with old rate and 8 days with new rate, and compulsory AL will be split between two rates as well. Can anyone advise how to do this?
    Thanks
    Linda
  • Tian LanTian Lan Member Posts: 51 ✭
    edited January 2020
    We are having the same issue here. All pay increase effective 1st Jan. but our payroll period is from 30 Dec to 10 Jan, 2 days with old rate and 8 days with new rate, and compulsory AL will be split between two rates as well. Could you please advise how to do this?
    Thanks
    Linda
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