Create an RDO wage category

This category is used when paying out RDO amounts to an employee.

1. Go to the Payroll command centre and click Payroll Categories.
2. Click the Wages tab and then click New.
3. Name the new category RDO Paid.
4. Set the Type of Wages to Hourly.
5. For the Pay Rate select the Regular Rate Multiplied by 1.0000 option.
6. Select the Automatically Adjust Base Hourly or Base Salary Details option.
   
   The Wages Information window should look like the following example:
   
     
7. Click Employee and select the employees who are entitled to RDOs then click OK.
8. Click OK.

Create an RDO entitlement category for employees paid hourly

1. In the Payroll Categories List window, click the Entitlements tab and then click New.
2. Name the new category RDO Accrual - Hourly.

3. Set the Calculation Basis to Equals [x] Percent of [Gross Hours].

   Use this simple calculator to work out your percentage.

   HTML

   <div class="myob-custom-calc-wrapper"> <p class="myob-custom-calc"> <span>Hours in a working day = </span> <input type="number" class="hwd" /> </p> <p class="myob-custom-calc"> <span>Hours per pay period = </span> <input type="number" class="hww" /> </p> <p class="myob-custom-calc"> <span>Frequency of RDO (in weeks) = </span> <input type="number" class="fqw" /> </p> <hr /> <p class="myob-custom-calc"> <span>Percentage of Gross hours = </span> <input type="number" class="pgh" /> </p> </div> <script> (function($) { var totalObj = $(".pgh"); $(".hwd, .hww, .fqw").on("change keyup paste", function() { var hwd = parseFloat($(".hwd").val()); var hww = parseFloat($(".hww").val()); var fqw = parseFloat($(".fqw").val()); totalObj.val(calcPercent(hwd, hww, fqw)); }); function calcPercent(x, y, z,) { if (x == undefined) { x = 0; } if (y == undefined) { y = 1; } if (z == undefined) { z = 0; } let calc = (x / ((y * z) -x)) * 100; return calc.toFixed(4); } })(jQuery); </script> <style> .myob-custom-calc { text-align: right; } .myob-custom-calc-wrapper { text-align: left; max-width: 330px; padding: 40px; border: 1px solid #DCDFE1; background-color: white; border-radius: 3px; } input[type="number"]::-webkit-outer-spin-button, input[type="number"]::-webkit-inner-spin-button { -webkit-appearance: none; margin: 0; } input[type="number"] { -moz-appearance: textfield; font-size: 16px; line-height: 1.5; text-align: right; padding-right: 5px; width: 60px; } </style>

    

   If you're interested in the formula behind this calculation, here are the details:

   UI Expand
   title Calculation details
   Use the following formula to determine the percentage of gross hours. PGH = HWD / [(HWW x FQW) - HWD] Where: HWD = Hours Worked in a Day HWW = Number of hours in a working week FQW = Frequency of RDO (in weeks) PGH = Percentage of Gross Hours   Example: Employees work 40 hours per week but are paid for 38 and get a paid RDO every 4 weeks: HWD = 7.6 (38 hours a week / 5 days) HWW = 38 FQW = 4 (1 RDO every 4 weeks) PGH = 7.6 / [(38 x 4) - 7.6] = 5.2632%

4. Set the Linked Wages Category to RDO Paid.
   
5. (Optional) If you want the RDO accrual to show on pay slips, select the option Print on Pay Advice.
6. Click Exempt and select the RDO Paid wage category, and all other pay categories that should be excluded from the accrual calculation, for example overtime, then click OK.
7. Click Employee and select the hourly-based employees who are entitled to RDOs, then click OK.
8. Click OK.

Create an RDO entitlement category for salary employees

1. In the Payroll Categories List window, click the Entitlements tab and then click New.

2. Name the new category RDO Accrual - Salary.

3. Set the Calculation Basis to Equals [x] Hours per [Pay Period].
   
   Use the following formula to determine the hours per pay period:
   
   HPP = (HWD / FQW) x WPP
   
   Where:

   HPP	=	Hours per pay period
   HWD	=	Hours in a working day
   FQW	=	Frequency of RDO (in weeks)
   WPP	=	Weeks in pay period

   Example: Employees work 40 hours per week but are paid for 38 and get a paid RDO every 4 weeks:

   HPP	=	7.6 (38 hours per week / 5 days)
   HWD	=	4 (1 day every 4 weeks)
   FQW	=	1
   WPP	=	(7.6 / 4) x 1 = 1.9 hours

    

    

4. Set the Linked Wages Category to RDO Paid.
   
   
5. (Optional) If you want the RDO accrual to show on pay slips, select the option Print on Pay Advice.
6. Click Employee and select the salary-based employees who are entitled to RDOs, then click OK.
7. Click OK.

Process a pay with RDO amounts

When you enter a paycheque for an employee and no RDO is taken, enter the paycheque as normal.

RDO entitlements for selected employees will accrue automatically. When you enter the hours taken against the RDO Paid wage category, the Base Hours/Base Salary amounts will reduce accordingly.

In our example shown below, one RDO of 7.6 hours is taken. 30.4 hours are paid as Base Hourly and 7.6 hours as RDO. The net pay remains the same as a regular pay period.

Also, 2 hours per week in RDO Accrual entitlements has accrued (38 x 5.263%= 2 hours).