Processing time-in-lieu in EXO Payroll (New Zealand)
"Time-in-Lieu" is a leave type that is not specifically covered by the Holidays Act 2003. Prior to the Holidays Act 2003, days accrued for working on a public holiday were known as "Day in Lieu" or "Lieu Time" but since the implementation of the Holidays Act 2003 they are now known as Alternative Leave.
When an employee works extra hours they may be paid overtime or can take the equivalent time off at a later date, often depending on company policy. Sometimes this is done on a casual and informal basis in a company while at other times it is managed quite formally. Employers often find using "Time in Lieu" to be a useful strategy, but it can be one that needs to be managed carefully.
"Time-in-Lieu" is used when employees who work extra hours are able to take the equivalent time off at later stage. In MYOB Exo Payroll there is no default leave type for "Time-in-Lieu" however, the software has User-Definable Leave Methods such as Shift Leave that can be used instead.
Listed below are instructions for setting up the Shift Leave User-Definable Leave Method and using that Leave Method for processing "Time-in-Lieu".
- Log into the payroll company then go to the Utilities menu and click on Setup Exo Payroll
- Click on the Leave Management Setup button
- Click on the Shift Leave Setup button near the bottom of the screen
- Tick the option Use Shift Leave
- In the User Defined Leave Name field change the name to Time in Lieu or similar
- Depending on how the rate is to be calculated when paying out the Leave, click on either "Value as Holiday Pay" or "Value as Sick Pay"
- If any outstanding Time in Lieu may be paid out to the employee on Termination, tick the option "Warn of outstanding balance on termination"
Click on the Save:F10 button to save the changes
The unit for Time in Lieu is consistent with the unit for Holiday Pay. This means that if Holiday Pay is accrued and paid in Hours then Time in Lieu will be accrued and paid in Hours. If Holiday Pay is using Days then Time in Lieu will use Days.
- Click on the Edit Employee toolbar button or go to the File menu then click on Open Employee. Select the employee that the Time-in-Lieu is to be recorded for
- Select the Sick & Other Leave tab. Under the User-Definable Leave Methods heading a Time in Lieu button is now available
- Click on the Time in Lieu button
- In the "Days outstanding from previous entitlements" field adjust the figure by the amount of the accrual the employee has earnt that period
Click on Save:F10 then click Save:F10 to save from the employee
If Hours is being used then enter the actual hours being accrued. If Days is being used then enter the accrual as a part of a day, e.g. an employee who normally works 8 hours per day then does 10 hours for a day so they have done 2 hours extra and are to accrue those 2 hours as Time-in-Lieu. This accrual would be entered as 0.25 days (2/8=0.25).
- In the pay being processed (Current or One-Off Pay) select the employee being paid the Time-in-Lieu
- Click on the Leave Management button. In the list of leave types on the left a Time in Lieu button is now appearing
- Click on the Time in Lieu button
- Enter the number of days or part thereof that the employee is to be paid for
Click Save:F10 and process the rest of the pay as normal
If Hours is being used then enter the actual hours being paid out. If Days is being used then enter the number being paid out as a number of days and/or part thereof, e.g. an employee who normally works 8 hours per day is to be paid for 4 hours so this would be entered as 0.5 days (4/8=0.5).
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.