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  • Time off in lieu




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Some employers allow employees to take time off instead of being paid overtime. It's called time off in lieu.

MYOB Essentials can't currently track the accrual of time in lieu, but you can set up a new earning type so you can pay employees for time off in lieu.

Here's how:


To pay time in lieu

To pay time in lieu

  1. Go to the Payroll menu and choose Employees.
  2. Click the employee's name.
  3. Click the Pay items - earnings & deductions tab.
  4. Under Earnings, click the Add earning dropdown arrow and choose Create new earning.
  5. Set up a Standard earning with a Rate of Per hour and the employee's regular hourly rate as the Amount. For clarification on which tax, super/kiwisaver, leave and ATO reporting category options you should select for your circumstances, check with your accounting advisor or the ATO/IRD. Here's our example.
  6. Click Save. The earning is now listed for this employee.
  7. Click Save.

When you pay the employee for time in lieu

Enter the Hours for Time in Lieu Paid. Remember to reduce their Normal hours by the same amount, otherwise they'll be overpaid.

This example shows 8 hours of paid time in lieu, and normal hours reduced from 38 to 30.

sample employee pay with 8 hours time in lieu and 30 normal hours

When paying time in lieu, use the Notes to appear on payslip field to let the employee know if they have any additional hours of time in lieu owing.

time off in lieu (TOIL)