Change to Personal Leave Accruals

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  • Question
  • Updated 2 months ago
Can someone please clarify how to input personal leave accruals. My understanding is that all staff now accrue 10 days personal leave per year, and that this must now be reflected in days rather than hours.
With a number of part time staff working various hours how should this be input? Some staff work different regular hours each day - some days 7 hours some day 4 hours.
Should it be accruing "every hour worked" rather than per pay period? Is the correct way to calculate this for eg - staff member works 21 hours per week, so this equates to accruing at .009158 per hour worked (accrues 10 days pa divide by 1092 which is the number of hours worked per annum).
Does this means every staff member working different weekly hours accrues leave at a different rate?
Or is there another way this should be input?
We have been putting this off for months as we were hoping that Reckon was going to change the accrual system to days to make it easier.

I have read a number of threads on here but I'm finding this is confusing me even more as there seems to be no clear answer

Can someone please help? We are using Reckon Hosted.
Photo of Vivienne Galvin

Vivienne Galvin

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Posted 2 months ago

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Hi Vivienne

 

There has been no indication at this stage that “Per Hour” accrual doesn’t meet the requirements.

Then underlying reason for the new ruling of “10 days” was a particular case where an employee worked more hours in their work day than the standard 7.5.  The employee should have been paid the same number of hours when on sick leave as her usual work day but the employer was only paying 7.5 hours which meant she (incorrectly) got paid less when off sick.

 

eg if an employee normally works 4 x 9-hour days p/wk, the employee should be accruing leave on 36 hours p/wk & should be paid for a 9-hour day if taking a day’s leave.

The employer in the recent case was only paying a 7.5 hr-day for leave!

 

As long as your employees are accruing “Per Hour” Leave on their standard “Work Day” hours (& get paid those same hours on leave as they normally would work) then that meets the requirement.

 

Shaz Hughes Dip(Fin) ACQ NSW, MICB

Reckon Accredited Professional Partner Bookkeeper / Registered BAS Agent (No: 92314 015)

Accounted 4 Bookkeeping Services

Ballajura, WA

0422 886 003

shazinoz2@bigpond.com

www.accounted4bs.com