Long Service Leave

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Sue_10075371
Sue_10075371 Member Posts: 41 ✭
edited June 2020 in Accounts Hosted
I have just set up Long Service Leave in Reckon Accounts Plus 2019. I entered the number of hours the employee (Adam) had owing the I processed the pays. The number of hours available was reduced on the pay slip, but no hours have automatically accrued (0.01667 per hour) and nothing is showing in the "Hours used this year" in Adam's record. Any ideas?

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  • Linda ABC
    Linda ABC Accredited Partner Posts: 1,131 Accredited Partner Accredited Partner
    edited June 2020
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    Hi Sue - can you post the screen where you put in the LSL settings for this employee?  Then we can check and see if there is anything incorrectly set here?  Then we would need to check to make sure that the payroll items you used will act upon these settings? 

    Not sure how you calculated your LSL accrual rate - different states have different rules.  But in SA where I am from, LSL accrues for every year of completed service - so I only add to the LSL accrual once per annum - adding 49.4 hours (1.3 weeks x 38hrs).. Cheers Linda
  • Sue_10075371
    Sue_10075371 Member Posts: 41 ✭
    edited June 2019
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    Hi Linda.  Thanks for replying.  Can't work out how to save a screen shot as a picture file so I'm typing the info...

    Leave Details for Adam
    LSL (previously Other 1 tab)
    Hours available as of 05/06/2019 - 307.87
    Hours used this year - 0.00 (actually, he used 30 hours in today's pay run)
    Accrual period - Every hour
    Hours accrued per hour paid - 0.01667
    Maximum number of hours - 0.00
    Reset hours each new year - (left unchecked)
    Year begins on - February
    Day - 23
    Begin accruing time on - 23/02/2009

    When setting up I followed instructions I downloaded - Processing Long Service Leave in Quickbooks.  It was set up to be monitored on a "Direct basis - that is, pay when taken" (as per advice from accountant).  The other option was "Liability basis".

    Required Accounts
    1 Expense accounts:
       a. Direct: Payroll Expenses: LSL taken (I set up this option)
       b. Liability: Payroll Expenses: LSL accrued
    2 Liability Accounts
       a. Liability: Provision for LSL (Long-term Liability) - (I didn't set this up as I thought it related to part b. in the previous point but maybe I should have?  Is this required for both options?)

    Hope this is not too confusion.

    Cheers, Sue

  • Linda ABC
    Linda ABC Accredited Partner Posts: 1,131 Accredited Partner Accredited Partner
    edited June 2020
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    Hi Sue - firstly - if you have 0.00 in the Maximum hours - then nothing will accrue - this field needs to be blank or have an actual maximum set - eg 49.4hrs per annum for a 38hr per week worker.  This would be contributing to why your hours are not being accrued in the pay you are processing.

    Depending on the timing of when you were entering this information and when the payrun was processed - the hours used may not have updated?

    If you are only recording LSL when its taken - you can allocate the LSL payroll item to the Payroll Expenses LSL taken account (although I would generally just allocate it to Gross Wages as thats where it ends up in the payment summary). 

    Agree if using the liability basis - you would have an Expense account for Accrued LSL and a liability account for Provision for LSL... 

    You also need to check the payroll item you are using for the normal pay - and make sure that this item has the box ticked to Include in every hour worked leave accruals.  This must be ticked in order for any ordinary hours worked to be picking up your every hour accrual of .01667 (which still doesnt seem like the correct rate to me?)

    Hope this helps?

  • Sue_10075371
    Sue_10075371 Member Posts: 41 ✭
    edited June 2019
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    Hi Linda - I have deleted the 0.00 from the Maximum hours and now it is accruing.  The 0.00 was the default setting and it did not occur to me that it needed to be blank.  I had set up the LSL information before I ran the pays but the 0.00 was obviously the problem there.

    Checked payroll item for normal pay and box to Included in every hour worked is ticked.

    I discovered something curious when checking the the Wages and Payroll Expenses reports.  Wages stops in 2009 and Payroll Expenses takes over at that date.  LSL is listed as a subcategory of Payroll Expenses in the P&L. I guess that has happened during a Quickbooks update.  Anyway, the accountants haven't commented on the switch so I guess it doesn't matter.

    With regards to the accrual rate, 49.4hrs per annum for a 38hr per week worker would mean that they would receive 13 weeks LSL after 10 years.  Is this correct?  According to NSW Industrial Relations, a worker receives 8.67 weeks LSL after 10 years which I worked out to be 0.01667 per hour. This is the first time I've had to process LSL so I'd love confirmation regarding that accrual amount.  

    Thanks for your replies.  They have been extremely helpful and much appreciated.

    Cheers, Sue
  • Linda ABC
    Linda ABC Accredited Partner Posts: 1,131 Accredited Partner Accredited Partner
    edited June 2020
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    Hi Sue - the default for that Max Hrs field is usually blank - but maybe your defaults in your preferences have it set at 0.00?

    With regard to the different naming of accounts.. perhaps this file only started using Integrated payroll from then - which would have been when Payroll Expenses (which is the default for payroll items) would have started being used?

    Looks like you are right about LSL in NSW - its 8.67 weeks after 10 years. I had a quick look and couldnt find any reference to completed years of service, which is very clear in the SA LSL Act - so your rate of accrual looks like its fine.  Sorry to confuse you!
  • Sue_10075371
    Sue_10075371 Member Posts: 41 ✭
    edited June 2020
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    Hi Linda - thanks again for your help.  I think I'm all sorted now.  Just have to enter the other employees' accumulated LSL hours and everything will be set.  Sounds like SA employees get quite a bit more LSL than NSW employees.

  • Linda ABC
    Linda ABC Accredited Partner Posts: 1,131 Accredited Partner Accredited Partner
    edited June 2019
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    Yes it does!!! but maybe its because of the full years of service requirement - some one will miss out on the 1.3 weeks if they haven't reached an anniversary date. cheers!

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