Leave accrual and amount calculations for days/hours setup (New Zealand)
This article deals with how the MYOB Exo Payroll software calculates leave accruals and Days/Hours paid for leave.
The Holidays Act 2003 provides information on the entitlements for the different types of leave along with the calculations for the amounts to be paid. Below is a guide to how the MYOB Exo Payroll calculates the leave accruals and the Leave amounts to be paid when set in Days or Hours for Holiday Pay. The information required for the calculations can be gathered from the different leave screens in the employee's record in the software.
Calculate an employee's accrued annual leave
| Full Time Permanent | Permanent Part-time / Pro-rata |
|---|---|
(Calendar days between Entitlement Date and Accrued to date / 365) E.g.
*Entitlement date= 17/05/2013
Days between = 119 (20/365) x 119 = 6.5 Year To Date Accrued days = 6.5 | (Annual Entitlement / 260) x Days Paid E.g. Days: Hours: Year To Date Accrued days = 4.23 |
How much to pay on Holidays
When the software works out the annual leave amounts to pay, it uses the greater of Ordinary Weekly Pay at the time the holidays are being taken or the employee's Average Weekly Earnings over the 12 month period before the leave is taken.
When the Ordinary Daily Rate is set to Standard Pay, the software determines the rate using the following calculation - gross / days (or hours) paid, e.g. $720 gross / 5 days paid = $144/day.
If the Ordinary Daily Rate field is set to 4 Week Average, the software looks at the pays processed in the preceding 4 week period and performs the above calculation using those 4 weeks of earnings and days (or hours) paid.
From the 2018.01 release onwards, the Ordinary Daily Rate field has a new “Higher Rate” option. This calculates the Standard Pay rate and the 4 Week Average rate for the employee each pay (as described above). Whichever is higher becomes the "Ordinary Daily Rate" and is in turn compared with the Average Weekly Earnings (Last 12 Months) calculation mentioned below.
The Average Weekly Earnings calculation in the software uses the values found in the Gross Pay / Days (or Hours) Paid fields of the Last 12 Months section of the employee's Holiday Pay screen.
What rate to pay for different kinds of leave
The Relevant Daily Rate is what the employee would have been paid had they worked on the day in question when being paid for Family Violence Leave, Bereavement Leave, Alternative Leave, Public Holiday and Sick Leave (commonly known as FBAPS Leave). Look for the method calculation on the Sick & Other leave tab.
If an employee did NOT work on a Public Holiday or are being paid for Sick Leave, Bereavement Leave, Alternative Leave or Family Violence Leave, they are paid the Relevant Daily Rate for that day.
If an employee DID work on a Public Holiday, they are paid time and a half of the Relevant Daily Rate for the hours worked on that day.
Relevant Daily Rate (if Holiday Pay is calculated in Days)
Average Daily Pay: Gross Earnings liable for Holiday Pay in the last 52 weeks / Days Paid in last 52 weeks / Hours per Standard Day
Standard Pay: (Gross Taxable Earnings / Days Paid) / Hours Per Standard Day
Relevant Hourly Rate (if Holiday Pay is calculated in Hours)
Average Daily Pay: Gross Earnings liable for Holiday Pay in last 52 weeks / Hours Paid for last 52 weeks
Standard Pay: Gross Taxable Earnings / Hours Paid
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.