Pay increase on annual leave, halfway through pay period

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An employee received a pay rise halfway through the fortnightly pay period, and also took annual leave in that period. I need to pay the employee 4 normal days and one AL day at the old rate, and 5 days AL at the new rate. Reckon won't let me edit the salary amounts in the paycheque as there is more than one payroll item (Salary and Holiday). How do I fix this? (Using Accounts Hosted)
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Kyla J

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Posted 2 months ago

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Hi Kyla

Am not sure if you are actually referring to "Salary" or "Hourly" here, as they are treated differently ?

Unlike an Hourly Rate, a "Salary" is an annual figure divided by the number of pay periods in the Financial Year.  This base amount can only be changed by editing the annual amount on the employee's record (which is what should be done upon Salary increase)

To correctly record AL days that are part of a "Salary"-type Pay, you need to use the "Hol Salary" Payroll Item as this will allow correct apportionment/reduction of Leave accrual.

A Pay increase is usually effected as at a Pay Date rather than a Pay Period, meaning you simply update the annual Salary amount before this Pay Run & pay it all under the new rate.

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Kyla J

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Hi
Thanks for your quick response. Yes I was referring to Salary, and amend increases in the employee record. I use the Holiday Salary item for leave. The issue is the salary increase was negotiated to be effective 1 Oct. The pay period is from 22 September to 6 October, with most of the AL days taken after 1 Oct. As you said above, if I change the salary amount before this pay run it will calculate it all under the new rate.
Hi Kyla

So then technically, the first Pay date after 1 October should all be paid at the new Salary Rate, regardless of pay period days being pre or post this date. 
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Kyla J

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Technically could be right, but what they have agreed between themselves is that one week will be old pay and one week will be the new pay.