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When using the Annual Leave method of= holiday pay calculation, only full days owing are shown on payslips, rathe= r than fractional days. Only full days are shown because the day calculatio= n is an estimation, and showing fractional days would be too imprecise to b= e useful.
This article explains how this calcul= ation works, and how you might use the information.
Employees are entitled to at least 4 weeks of annual leave per year (p= ro rata). This entitlement is received all at once at the end of 12 months = of employment, and does not accrue incrementally.
In other words, no days of annual lea= ve are due throughout the year, and then at least 4 weeks of leave become available at once.
If an employee leaves before the one = year anniversary of their employment, they are paid out for the days they h= ave accrued. This is paid in a lump sum at 8% of their gross income =E2=80= =94 the equivalent payment of any annual leave they would have accrued.
If you and your employee both agree, = you can allow your employee to take leave in advance.
It is wise to only allow your employe= es to take leave in advance that they would have accumulated if leave accum= ulated incrementally. For example, you might let a full time employee who h= as worked for 3 full months (a quarter of a year) take 1 week of paid leave= (a quarter of their annual leave entitlement). If they end their employmen= t immediately after taking leave, they have been paid for their accrued lea= ve entitlement and no more.
Ace Payroll calculates accruing annua= l leave for you by taking the 20 day entitlement, dividing it by 365, and e= stimating that your employee therefore accrues a little over 0.05 days of a= nnual leave per day that they work. This figure is shown on the payslip as = a guide =E2=80=94 it does not mean your employees are legally entitled to t= hese days. How this figure appears on the payslip depends on your settings.=
There are two options for showing lea= ve on payslips: Show As S= ingle Number and = Entitlement + Estimate.
Show As Single Number<= /strong> shows any leave your employee i= s entitled to (leave they have accrued but not taken in the last full 12 mo= nth period), plus any leave they are estimated to have accrued (leave they = are not legally entitled to until their next anniversary) as one s= ingle number.
For example, if your employee accrued= 20 days of leave last year but didn=E2=80=99t take any of them, and has wo= rked a further 3 months this year to accrue an estimated 5 days, their pays= lip will say they are owed 25 days of leave.
Entitlement + Estimate= shows the leave your employee in entitled to (leave they have accrued = but not taken in the last full 12 month period) as one number, and t= he leave they are estimated to have accrued (leave they are not le= gally entitled to until their next anniv= ersary) as another, separate number.
For example, if your employee accrued= 20 days last year and didn=E2=80=99t take any, and has worked a further 3 months this year to accrue an es= timated 5 days, their payslip will say they are owed 20 =E2=80=98Full Year= =E2=80=99 days of leave, and 5 =E2=80=98Current Year=E2=80=99 days of leave= .
There is an option to show annual lea= ve entitlements but remove accrued leave estimates from payslips a= nd the leave report.
You might choose to do this if you do= n't allow employees to take leave in advance, and don't want to confuse the= m by showing an accrued leave estimate on their payslip.
=20 =20 =20