Help Centre/Paycycle Basics/Leave Entitlements

Step 2: Manage Employees' Leave

Joe Salvati
posted this on December 18, 2011 01:41 pm

This is where you start looking at each employee's particular case.

So go to Employees, Choose the employee you wish to edit and go to their Employment tab. Now, follow the next 3 steps.

1. Choose the Ordinary Rate

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Leave is usually paid on basic hours or ordinary rates, so you need to select from the Earnings Rates that you included in Payslip Items which of them is the one that you will pay leave on.

In the Employment tab, you'll find a box that states "Ordinary Earnings Rate"

Here choose the standard rate you will use to pay leave to that employee. The units in which this rate is measured is the unit that will be taken in next steps as valid.

Once you are done, click SAVE.

2. Record Opening Balances

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If you are moving from another payroll software (even if it's Excel!) in the middle of the financial year, or the employee has accumulated leave from the previous year, you need to include how much Leave that employee has accrued (accumulated).

When viewing the employee you can  click on the Opening Balances tab and add a new opening balance for entitlements .

You'll be prompted by a pop up in which you'll be able to select the type of leave, and the amount that has been accrued.

Once you are done including all accrued entitlements, click SAVE.

3. Update the Pay Template

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Next, go to the the employee's Pay Template.

Once you click on the Add a Leave Line box you'll be prompted with a pop up box.

If a default appears is basically what the system thinks that should be accrued. But we suggest you check it and change as necessary.

You'll find three different alternatives, each thought for different ways of managing leave:

a. Enter Rate in Template

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Here you can leave the space open and include the amount of leave that will be accrued per period in the template. If you already know how much it is, we recommend you go with this option.

b. Calculate Rate - Fixed Amount per period

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If your employee accrues the same amount per period but you are not sure how much, then we'll do the numbers for you. Just include how much that person will accrue in one year, and we'll calculate the specific period accrual.

c. Calculate Rate - Based on Ordinary Earnings

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This option is the one you need if you have hourly-based employees. Usually this employees accrue leave according to the amount of hours they work.
Hence, you need to input not only how many hours will this employee accrue per year, but also how many hours does a standard payroll calendar has for that employee.

For example, if the employee works 40 hours a week, he will accrue 3.076 hours a week. But if that week he worked only 36 hours, we will not accrue as much.

 

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