How to cap leave accrual

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  • Updated 3 years ago
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How do you set up the Reckon payroll to accrue leave only up to a maximum ie only accrue on the first 38 or 40 hours (for the week)? Employees are currently accruing leave on an hourly basis ie Accrual Period = Every Hour, but I want to cap the accrual each pay period (week). This is to ensure we don't over accrue leave since as an Australian employer annual leave only has to be paid on ordinary/standard hours which is 38/40.
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Kevin Rutland

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Posted 3 years ago

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Charles van Rotterdam

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Anything over 38/40 hours would have another payroll item probably called overtime which will be set as not accruing leave. That way it only accrues on the normal time
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Kevin Rutland

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Yes, but as we pay a flat rate during the week we only use the one payroll item.  So I guess there's no choice but to setup another one.
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Charles van Rotterdam

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AAAH Kevin, what does the Award say. You may need to be careful that you are not underpaying even if your normal rate is above the award. Strongly advise you check with Fair Work.