Leave accruals

  • 1
  • Question
  • Updated 3 months ago
  • Answered
We started using Hosted 2018 for our payroll this financial year.  I entered the leave balances as at the new pay year, but the accruals have taken on a life of their own and are calculating themselves (I believe based on when the individuals began working for us, not when we started using this program).
I tried some of the fixes that were suggested on here (including rebuilding the data x 3) but that didn't resolve the issue.  I need this fixed ASAP as one employee believes she has over 400 hours of personal leave when in fact she has less than 50 (and is likely to try to take it).
Photo of Nicole

Nicole

  • 300 Points 250 badge 2x thumb
  • frustrated!!

Posted 3 months ago

  • 1

Hi Nicole

A few things to check in the employee's record ("Payroll & Compensation Info" tab under "Leave Details"): 

  • Check the "Hours available as of ..." date & quantity. 

The " ... as of date" is usually the last pay date.  Check that the quantity shown here is correct.  If not, you can overwrite with the correct quantity to ensure accuracy going forward. 

  • "Hours used this year"
    Unless an employee HAS taken any leave hours this FY (since starting Payroll in RAH), this should be "0.00
  • "Accrual Period" & "Hours Accrued Per ..."
    It is crucial to make sure this is correctly set.  Different Accrual periods (Every hour v Every Pay v Beginning of year) have different accrual calculations. 

I find "Every hour" is most accurate as this also allows for correct pro rata accruals for part-time staff.


The standard, approx. "Every hour"-based accrual is 0.07692 Hrs for Holiday (Annual) Leave & half that (0.03846) for Personal (Sick) Leave.  (RA usually rounds these to 0.07694 & 0.03833 which is fine) 

  • Maximum Number of hours" - Make sure this field is BLANK (Not 0.00) 
  • "Year begins on ..."  / "Day" / "Begin accruing time on ..."
    This usually defaults to the employee's Start Date which - unless their Award/Agreement states otherwise - should be left. 
  • Tick the "Leave Liability" checkbox to ensure inclusion in reports     

(Edited)
Photo of Linda Putland

Linda Putland, Accredited Partner

  • 6,632 Points 5k badge 2x thumb
One thing to remember with using the Every Hour Option is to make sure your overtime payroll items are unticked for Include in Every Hour worked - otherwise you will end up with people accruing MORE than 4 weeks annual leave or 2 weeks personal leave!  It would be great if we could have a MaxHrs per Pay box to enter as well as the current Max Hrs (overall) that we could use - to ensure that no more than their entitlement is accrued - I have had several clients where this has happened and have had to explain to the staff that the accruals were incorrect and they actually dont have as much leave as they think they have!  
Photo of Charles van Rotterdam

Charles van Rotterdam

  • 8,992 Points 5k badge 2x thumb

Nicole, totally agree with Shaz and I also use the 'every hour' option

However because I know this can happen with Reckon and other accounting packages and it is often nigh on impossible to recreate what the accrual should be.

As such I have an Accrual spreadsheet that I use as a control so that it is easy fixed, if you want email me on charley@vanrotterdam.com.au
Photo of Linda Putland

Linda Putland, Accredited Partner

  • 6,632 Points 5k badge 2x thumb
Nicole, it would also be helpful to see a screen dump or if you just post - how you have all the leave screens setup?  so we can see what is happening and why it is accruing more than you expect?
Photo of Nicole

Nicole

  • 300 Points 250 badge 2x thumb
OK, so I gave it 2 weeks to reset itself... the totals are now correct in the system, but they are still not printing correctly on the payslips - how can this happen?

Photo of Linda Putland

Linda Putland, Accredited Partner

  • 6,632 Points 5k badge 2x thumb
Nicole it can get messed up in the payslip templates and its not easy to fix... have you tried all the templates to see if they all give the same result?  have you rebuilt the file x 3 times to see if this corrects the problem?  failing that, there is a KB article that you can follow to try and correct this...have used it before for previous versions, but I was pretty sure they had fixed the problems in 2018?  although your problem started in 2017 (you said it was a June pay?) can you work out if the amount it is out relates to anythng?  is it that used leave is not deducting or is it doubling up accruals?  sorry, very hard to help without specifics... maybe a call to Reckon Hosted Tech support 1300 799 150 would help and they can point you to the KB article to try those steps?