How to link - Unused Leave on Termination (U) to employee's annual leave records

Is there a way to link the payroll item Termination Payment - Unused Leave on Termination (U) to the employees Holiday leave record? When I enter the Termination payment, it doesn't reduce the Holiday Hours owing on his record or payslip to zero, nor does it automatically calculate the 17.5% loading.

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Acctd4

Hi @StephG

It sounds like it's not been configured correctly. In the initial Payroll Item setup, this window allocation is absolutely crucial as this enables the system to link to the relevant type of payment:

Only be selecting Holiday Pay here, does the system know to affect holiday leave accruals & automatically apply leave loading.

Unfortunately, this specific window is only accessible during the initial setup so you'll need to create a new Payroll Item for this & link it correctly at this window 😬

StephG

Thank you! Did as you suggested and all good.

Acctd4

Good to hear @StephG ! 🙌😊

MartyHansen

Hello, what do I do if I have already done a pay cheque using the terminate button in reckon hosted, and there was no "U " item when I did it. I wasn't aware that that was why it wouldn't let me enter all his unused holidays. I thought the 5 hours left was simply the new accrued amount, because it accrues in 5:31 hours each pay. I have already processed it using STP & paid his super. It won't let me do a new pay for him, as he is now terminated. I have never done a termination before. Thank you for any advice.

Acctd4

Hi @MartyHansen

The "U" code is Leave - Unused Leave on Termination (U) You need to have a new Payroll Item set up & linked for this. It's a bit fiddly but you can undo the termination status again, via the Employee Organiser.

TIP: Always set leave accruals to Every hour - If an employee starts or leaves partway through a pay period or their hours change, the leave accruals will be incorrect 😬

MartyHansen

ok, thank you Shaz, so I just undo the termination, and then do a new payroll for him with the last pay date as the date, and pay just the 5 hours owing to him? Then do I do another termination?

Acctd4

I would delete the existing final pay first. Then - via the Employee Organiser - undo the Termination status & follow the prompts to Terminate Employee again. At the end of the process, there's a link to create the final pay so create it again from that.

Make sure you use the NEW holiday pay Payroll Item - linked to - Leave - Unused Leave on Termination (U)
No Super is payable on this as paid out entitlements are not OTE !

Feel free to reach out to me direct if you get stuck ☺️

MartyHansen

ok, thank you so much, looks like it will be messy for the employee, but I will explain everything to him. I'll keep you on speed dial 😊

MartyHansen

sorry Shaz, I'm drowning. How do I set up the "U" i've tried, but it's creating a negative figure in the other 1 item box, no one has ever put this "u" in before and I think i'm doing it wrong, because now it's not adding leave loading either.

MartyHansen

hey it's ok, i figured it out, i typed in just a U and it started to show the right stuff, think i'm right now. thank you so much I was over thinking it 😁❤️

Acctd4

Hi Marty

It's essential to make sure you select Holiday Pay when setting up the new U Payroll Item:

(The last 4 options in this screenshot are your employee Leave tabs - In this company file, Other 1 has been set up as LSL & Other 2 as TiL).

The selection here is crucial as this tells the system that this Payroll Item is:

Leave-related &
Which leave should be impacted when it's used

Unfortunately, this window is ONLY available at initial setup & can't be accessed/edited after, so I'd recommend deleting the one you've created (as it sounds like it was inadvertently linked to Other 1) & re-creating it again.

Due to Leave Loading paid on termination also being required to be reported under the new U category, you need to set up a new Payroll Item for this too. Note: the prompt for this loading to automatically calculate when holiday pay is used, is ONLY on the original, default one … but there's a workaround 😊

I'm on-site with a client for the rest of the day but if you can hold off until tonight or tomorrow, I can help you with it one-on-one.

If you can shoot me through an email, I'll send you some of the docs I've created for these scenarios. If you're still struggling, we can always organise a remote session, if you need 😊

MartyHansen

Thanks Shaz, I'm sure I have it sorted now, I'll double check it all tomorrow. Thanks again.

Acctd4

Good to hear @MartyHansen 👏🏻👏🏻👌🏻😁