Thankyou Payroll help Getting StartedExplaining Annual Leave

Explaining Annual Leave

Each leave method calculates differently in the system, one is based on days (rate set as per the holiday's act) and the other on a percentage of gross earnings (a % of gross earnings (temp and irregular scenario)).  Changing the leave method in an employee profile will not convert one calculation to the other.  Changes can create complex issues. In these circumstances please contact our support team for advice.

Permanent Employee

Generally for employees with guaranteed hours each week, may or may not have a regular work pattern and have an ongoing expectation of employment i.e. permanent full-time or part-time employment. You'll need to refer to their employment contract prior to setting this up.

The example below is for an employee who is entitled to minimum 4 weeks leave each anniversary and is using the "rate set as per the holidays act" method.

The system requires a value for an ordinary working week:

1. Set a custom rate if your employee works variable hours.

2. Enter the number of days the employee normally works each week, followed by the total hours normally worked over those days.

In the below example the employee would be allocated 4 weeks of 5 days using the length of a standard week "same as default standard week" entered in the standard pay tab which will show in the Leave Liability table as "days allocated annual leave" 20 (4 weeks*5 days).

Each day of annual leave will be paid out at 8 hours each. The dollar value for an ordinary working week will be 40 hours multiplied by their standard pay rate. When their anniversary is passed they'll get 20 days of leave.

If you can't easily determine what an ordinary working week is you'll need to come to an agreement with your employee as to what an ordinary working week is for the purposes of annual leave.

 

In the next example, the employee works a fixed pattern of days and hours.

1. The option for an ordinary working week has been set to be the "Same as default standard week". A default standard pay week needs to be saved in the standard pay tab for this to work.

2. The value of a typical week will be automatically calculated using the information entered in the standard pay tab in the "set default entries for standard pay row of timesheet" section. Any change made to the standard pay tab will automatically update the leave settings.

In the below example the employee would be allocated 4 weeks of 5 days using the length of a standard week "same as default standard week" entered in the standard pay tab which will show in the Leave Liability table as "days allocated annual leave" 20 (4 weeks*5 days).

Each day of annual leave will be paid at 7 hours each. The dollar value of an ordinary working week will be the same as their default standard week.

Employee standard pay - Google Chrome
Casual Employee/Temp Staff

Generally for a worker that has no guaranteed hours, no regular work pattern and has no ongoing expectation of employment. Please refer to the employment contract offered to the employee prior to setting this up.

In the example below, this employee is entitled to annual holidays but it is calculated differently from a permanent employee.  Their leave is calculated in Thankyou Payroll system using the "a % of their gross earnings (temp and irregular scenario)" method.

1. Select Leave as 8% of gross earnings. Avoid using the Leave as per hour worked setting, this option is for rare situations and the helpdesk should be contacted before using it.

2. Select Paid into each pay if they are contracted to get holiday pay-as-you-go.

3. Select Accumulate and pay later if their 8% holiday pay is to be paid at a later date, typically used for fixed term contracts.

 

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