Cashing out up to 1 week of an employee's holiday pay (New Zealand)

The Holidays Amendment Act 2010 allows an employee to "cash out" up to 1 week of their Holiday Pay per entitlement year from outstanding leave only. This "cash out" is not a guaranteed right for the employee but is rather an agreement between the employee and the employer. The employee's Anniversary Date for Holiday Pay entitlement needs to occur on or after 1st April 2011 for the employee to be eligible to have any Holiday Days "cashed out".

MYOB Exo Payroll can process the "cashing out" of an employee's Holiday Pay through the Leave Management section of the Current and One-Off Pays.

To "cash out" any Holiday Days an employee must first make a request in writing. The MYOB Exo Payroll has a "Leave Cash-up Consent Form" report that can be printed and used for this request. This report is located in the Employees tab of the Select Report screen that can be accessed through the Reports menu then select Print Report. The request form must be completed by the employee then given to the employer.

Once the request has been approved by the employer, the "cashing out" of the Holiday Days can be processed through either a One-Off Pay or a Current Pay. In the pay being used to "cash out" the days, edit the employee in that pay. In the Holiday Pay screen of Leave Management, enter the number of Holiday Days to be "cashed out" in the Days field of the Cash Up line. An amount will calculated for these Days that will appear in the Holiday Pay Amount field. Click on Save:F10 to return to the main Pay screen.

Holiday pay setup in days/hours

Holiday pay setup in weeks

The amount of the Holiday Pay being "cashed out" does not appear in the Leave line on the main Pay screen as it is being paid using an allowance. An allowance called "Holiday Pay Cash-Up" has been created automatically by the software and appears in the Allowance Maintenance screen. When saving from the Leave Management screen the software automatically adds the "Holiday Pay Cash-Up" allowance to the employee's Allowances screen, with the amount entered in the allowance as had appeared in the Holiday Pay screen of Leave Management.

Once the pay has been authorised, print any reports and finalise the pay as would normally be done.

Need more help? You can open the online help by pressing F1 on your keyboard while in your software.

You can also find more help resources on the MYOB Exo Employer Services Education Centre for Australia or New Zealand.