Checking and correcting annual leave balances (Australia)

In MYOB Exo Payroll, employees can be setup to automatically accrue leave as pays are processed. The leave should accrue based on the employee's actual hours of work.

If it is found that an employee's Annual Leave balance is not showing the balance as expected, it may be that the Annual Leave is not calculating at all, is accruing at an incorrect rate or that the balance totals are incorrect.

This support note explains how to check the Annual Leave and make adjustments if necessary. If the Annual Leave is not calculating at all, click here for further assistance.

Why annual leave is accruing at a different rate and showing unexpected year-to-date figures

If you're using the pay period valuation method

This option (located under Leave management setup in Setup Exo Payroll from the Utilities menu) will determine whether Annual Leave is accrued on actual hours or the Standard Pay's Hours Paid set up for each employee.

• If selected, the accrual is based on the Hours Paid amount bought across from the Standard Pay.
  Go to the Employee Maintenance screen, then the Standard Pay tab then click on the Hours Paid button. The leave accrual will calculate based on these hours. Depending on the employee's setup, the figure that appears in the Hours Paid button can be changed to whatever figure the leave accrual is to be calculated on.
  

  

• If unselected, the accrual is based on the Hours Paid figures being paid in the Current (and One Off) Pays.
  Check the Pay rate mulitpliers and Allowances to see if the "Include in Hours Paid" fields are ticked.
  

  

The Carry Over figure may be incorrect

The Carry Over figure should be any leave still owing to the employee up to the last Anniversary Date for that employee. An employees Anniversary Date is the anniversary of the employee's Start Date (as entered in the Employee Details tab of Employee Maintenance) or is a Company Anniversary Date (as setup in the Leave Management Setup section of Setup Exo Payroll). If the employees are being moved from another payroll software package or another company in MYOB EXO Payoll, the Carry Over will represent the accrual of the employee up to the last pay processed in the old package or the old company.

To check the Carry Over, go to the Employee Maintenance screen, to the Leave Entitlements tab then click on the Edit button under the Other Details heading.

The Annual Leave Group is setup incorrectly.

To check the setup of the groups, go to the Maintenance menu then to Groups then to Annual Leave Groups. Select from the list the group to be reviewed.

• Check if Cap Accruals is ticked or not and apply the appropriate setting depending on your requirements.
• Make sure the Leave Loading % value is entered correctly.
• Confirm that the Annual Entitlement Hours figures are correct and that the Full Time Hours Per Year figure corresponds to the Annual Entitlement Hours appropriately.

What to do if the leave has been accruing incorrectly

• To update the Annual Leave Balance, determine what the balance should be then modify the Carry Over figure to achieve the desired balance. Enter a note for the employee detailing the changes made for future reference.
• If the Year-To-Date figures are not as expected, in the Leave Entitlements tab of Employee Maintenance click on the Edit button under the Group Entitlement Changes heading. Click on the Edit button then alter the Hours Paid This Year figure to the amount that should be showing (to determine this figure click on the Edit History Hours Paid button then add up the Hours Paid figures for the pays that occur in this Holiday Year since the employee's last Anniversary Date).
  

  

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.