Payroll Premier 2015/16 Long Service Leave Calculations

  • 1
  • Question
  • Updated 4 years ago
  • Answered

Good Morning,

The company in which I am employed has used Payroll Premier since I began 10 years ago. The Long Service Leave calculations have always been spot on, calculating .0167 hours for every 1 week of service.

I will be taking my Long Service Leave in a few weeks and to ensure my wage is entered correctly, I have tried to produce a test pay.  

When I switch from "Normal Hours" to "Long Service" it states the following:

"This employee only has 8.7157 hours of Long Service left. You can continue processing the pay, however the employees Long Service accrual will be a negative figure."

I currently have 8.7157 weeks of Long Service Leave, why is this calculating in hours?

Please help! :)


Photo of Michelle Hadgkiss

Michelle Hadgkiss

  • 130 Points 100 badge 2x thumb

Posted 4 years ago

  • 1
Photo of Reckon FAQs

Reckon FAQs, Employee

  • 10,138 Points 10k badge 2x thumb
Hi Michelle,

Welcome.

Please check your accrual rate for Long Service Leave.  If you are accruing 0.0167 hours for every weekly pay then after 10 years (say 520 weeks) you have 8.684 hours accrued.  

Hope this helps,

regards,
John
Photo of Andrew

Andrew

  • 22,222 Points 20k badge 2x thumb
Hi Michelle,

You might want to check your figures.

LSL is 13 weeks leave for 15 years of continuous employment, assuming 40hr week, thats 520 hrs leave in total.

So 520 hrs / 15 years = 34.666 hrs a year accrued or 0.66666 hrs for each week worked or 0.0167 per hour worked.
Photo of Michelle Hadgkiss

Michelle Hadgkiss

  • 130 Points 100 badge 2x thumb
Hi John and Andrew,

Thank you so much for your replies.

I have confirmed my LSL calculations from the Business Victoria website. I currently have the correct amount of 8.7157 weeks owing.

So my calculations should be converted in Payroll Premier to hours instead of weeks?

Thank you once again

Michelle
Photo of Andrew

Andrew

  • 22,222 Points 20k badge 2x thumb
Hi Michelle,

You can do it on weeks or hours worked, its your choice.

But in your original post you said "calculating .0167 hours for every 1 week of service."

As per the LSL calc breakdown, the 0.0167 figure for accrual is per hour worked if working a 40hr week, not per week.

I think you'll find based on you applying 0.0167 hrs per week, instead of per hour worked, that you really have only 8.7157 HOURS LSL accrued in the system not 8.7157 weeks that you think you have.

If you want to accrual via weeks, you need to apply 0.66666 hrs per week served.

Payrolls accruals for holidays/sick lease/lsl always work in hours, not weeks. Hence the error your getting as the calculation is incorrect

So in your example, after 10 years, your LSL accrual should be around 347.36 hrs, (347.26 / 40 = 8.684 weeks of leave).

Enjoy!
(Edited)
Photo of Michelle Hadgkiss

Michelle Hadgkiss

  • 130 Points 100 badge 2x thumb
Thank you so much Andrew,

That makes perfect sense.. Looks like our Payroll was set up incorrectly.

I really appreciate your help.
Photo of Andrew

Andrew

  • 22,222 Points 20k badge 2x thumb
No worries. It's a easy fix once you work out why its gone off the rails.

All the best, and enjoy the holiday!