Leave Accrual

Setting Leave Accrual

To modify the leave entitlement accrual (in hours) generated for each pay transaction:

1. Select View > Payroll > Setup Pay Items.
2. Open the pay item.
3. Modify the percentage rate as required.

Setting Leave Accrual Rates

Because holiday and sick leave differ depending on your agreement/contract/award/country, etc, Saasu only has a default accrual set for Entitlement pay items. This default percentage of hours needs to be set according to your specific needs. The default accruals for the Holiday Leavepay item is set to 4 weeks (20 days) per annum, 7.6923% of gross hours worked. The percentage is calculated as follows:

(4 weeks x 5 days x 8 hours) / (52 weeks x 5 days x 8 hours ) = 4 / 52 = 7.6923%

Sick leave is managed in the same way.

Long Service Leave

You may have employees who are entitled or contracted to start accruing long service leave hours. This help item explains how to setup a Pay Iteam to facilitate this.

Accruing Long Service Leave:

1. Go to Settings > Payroll > Manage Pay Items.
2. Open and duplicate one of the Entitlement Pay Items.
3. Give it a new name such as Long Service Leave or similar.
4. Work out the % of Gross Hours you need to accrue each pay period.
5. Set it’s accrual rate according to this percentage.
6. Save and close the screen.

You can now add this Pay Item to employee’s default pay as it becomes an entitlement for them.

Paying Long Service Leave:

1. Go to Settings > Payroll > Manage Pay Items.
2. Open and duplicate one of the Wages and Salaries leave Pay Items.
3. Give it a new name such as Long Service Leave Pay or similar.
4. Apply the appropriate account code and tax code for your tax zone.
5. Save and close the screen.

You can now add this Pay Item to employee’s pay as they take leave.

FAQ’s

How do I know how many days leave my employees are entitled to?

Seek guidance from your advisors as the rules differ for different businesses and zones. Several legal, regulatory, and other issues should be considered.

I’ve been accruing leave at the wrong rate, what can I do to fix this?

You will need to do an adjusting entry in the employee’s next pay transaction. You can do this by adding an extra pay item under the Next Pay tab for the employee:

1. Select View > Employees from the main menu.
2. Click the Next Pay icon (pencil with arrow).
3. Add the entitlement you need to make an adjustment for (in addition to the normal ones that accrue).
4. Ensure Auto-calc is NOT ticked – It should be off for the extra pay item you are adding for this pay.
5. Work out how many extra (or less) hours they should have and enter this.

Can I set an expiry on accrued leave?

Currently we don’t have a mechanism for removing expired accruals. You would need to put through a zero dollar adjusting payroll entry for that person to remove the accrued leave which no longer applies. To do this:

1. Remove all pay items except the accrual one needed.
2. Set this accrual to the negative amount you need to adjust it by.
3. Save the transaction.

How do I track the accrued value of leave in my accounts?

This would be captured with an accrual journal each month/quarter/year. Where your employees are entitled to leave at current (rather than historical) pay rates, you would need to allow for this changing the accrued total value over time with additional journal adjustments. Contact your advisor regarding specific requirements in this area.