Sick leave not reducing

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  • Question
  • Updated 5 months ago
WHEN I PROCESS PAYROLL AND STAFF USE SICK LEAVE THEIR ACCRUED AMOUNT- OF LEAVE IS NOT REDUCING
AND ITS NOT SHOWING UP IN THEIR TOTAL HOURS USED THIS YEAR?
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CATHERINE

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Posted 1 year ago

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Rav, Community Manager

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Hi Catherine,
The first thing I'd recommend is checking the setup of your sick leave item.

Also, has it worked properly on previous occasions?
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Debbie Williams

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HI All,
I have never been able to get any leave; annual, sick or LSL hours to reduce.  We use timesheet functionality to enter hours worked each week.  We run our payroll monthly.  We are using Reckon Accounts Premier.  The available hours for each category accrue correctly, but there seems to be no way of linking the sick leave or annual leave hours taken from timesheets to the available accrued hours.  Do we need to use a specific service item in timesheet to link the two together?  This has frustrated me since we started using QuickBooks and subsequently Reckon for 20 years.  We have an external Excel spreadsheet where we tally the figures and update the individual hours every month prior to running payroll.  It is very slow and laborious, not to mention the possibility of data entry errors

Hi Debbie

You stated previously that you use Timesheets so it was my understanding that you meant those within the software.

OK, if you are using Salary Payroll Items, you need to setup Salary Leave Items for when your applicable staff take Leave:

Create a New Payroll Item (Payroll Item Type: Wage > Wages: Annual Salary >),  which will bring you to this window: 


This is how you tell RA that the Item you're creating affects Leave so that it deducts from the Leave balance(s) accordingly.  Setup up one for each Leave Type eg one for SL (listed as "Sick Pay"), one for AL (listed as "Holiday Pay") & one for LSL

Follow the setup prompts on each window - Link to your Payroll Salaries & Wages (or subaccount if broken down further) Expense account.  At Tax Tracking Type, they should all be linked to "Gross Payments", both PAYGW & State Payroll Tax apply so ensure these are both ticked & lastly make sure on "Inclusions" that you tick the checkbox & select the appropriate Super Funds to ensure Super also calculates on these Leave Items.

Most importantly, when paying an employee Leave, you MUST use the applicable Leave Item otherwise RA doesn't know it's Leave that's being paid & therefore doesn't deduct it from the balance.

You will need to enter the applicable hours on the employee's Pay because the employee's default balance records for available & used leave are in hours.  This doesn't alter their salary - RA will calculate the remainder of the pay to total up to their usual salary amount. 

(Edited)
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Kate

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To further this, I was wondering if anyone knew how we can allocate different sick leave payroll items to all deduct from Personal Leave? For example, I want to have sick leave with certificate, sick leave without certificate, carer's leave and bereavement leave all deduct from their personal leave balance. i can see above shows me how to set them up, but they are already set up, but don't seem to be linked to sick leave. Is it possible to link them without having to set them up new?
(Edited)
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Marissa

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I’m wondering the same as Kate I have set up sick leave and sick leave without cert however my sickleave without cert is not getting deducted off personal leave yet it’s set up the same as sick leave. Can anyone advise how I can fix this I’m using Reckon desktop
(Edited)

Hi Kate & EJ


Any Leave Payroll Items must be setup correctly to start with in order to link to their particular accrual area.  Unfortunately, one of the setup windows in that process is only visible in the initial setup so it’s not possible to correct it if it’s that part that’s incorrect.

 

Sick Leave/Carers Leave – with or without a Certificate - all falls under “Sick Leave” – This accrues as an employee works & can be successfully tracked via separate Payroll Items providing they are setup correctly as above.

 

Bereavement /Compassionate Leave on the other hand, is an additional NES entitlement (as per the Fair Work Information Statement) of “2 days paid compassionate leave for each permissible occasion & 2 days unpaid carers leave for each permissible occasion” 

These leave types don’t actually “accrue” & therefore don’t deduct from anywhere when paid either.  The paid compassionate leave is just paid in addition to the employee’s usual hourly/salary pay.

 

Hope that helps :)

 

Shaz Hughes Dip(Fin) ACQ NSW, MICB

Reckon Accredited Professional Partner Bookkeeper / Registered BAS Agent (No: 92314 015)

Accounted 4 Bookkeeping Services

Ballajura, WA

0422 886 003

shazinoz2@bigpond.com

www.accounted4bs.com

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Kate

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Thanks Shaz
I will set up a new one and test it, then make the old code inactive. Hopefully that resolves it!