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AccountRight Plus and Premier, Australia only

If you have employees who are entitled to regular rostered days off (RDO), use this information as a guide to setting it up in AccountRight. How often your RDOs are taken or how they're calculated will be specific to your business. So use the information below as a guide only.

To learn more about RDOs for your industry, visit the FairWork website.

Setting up for RDOs

You'll need to create a wage to pay RDOs, and an entitlement categories to track RDO accrual.

 

UI Expand
title1. Create an RDO wage category

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. If you report payroll information to the ATO through Single Touch Payroll, select the applicable ATO Reporting Category. Typically this will be the same ATO Reporting Category you've selected for your Base Hourly or Base Salary wage categories. Learn more about assigning ATO reporting categories for Single Touch Payroll reporting.
  6. For the Pay Rate select the Regular Rate Multiplied by 1.0000 option.
  7. Select the Automatically Adjust Base Hourly or Base Salary Details option.

    The Wages Information window should look like the following example:
    Example RDO wage category setupImage RemovedImage Added
      
  8. Click Employee and select the employees who are entitled to RDOs then click OK.
  9. Click OK.
UI Expand
title2. Create an RDO entitlement category for employees paid hourly

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.

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    <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,) {
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            x = 0;
          }
          if (y == undefined) {
            y = 1;
          }
          if (z == undefined) {
            z = 0;
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          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;
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    </style>
    
    

     

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

    UI Expand
    titleCalculation 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.
    Example RDO entitlement category setup for hourly employees
  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.
UI Expand
title3. Create an RDO entitlement category for salary employees

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.
    Example RDO entitlement category setup for salaried employees
  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.
UI Expand
title4. Process a pay with RDO amounts

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).

Example pay with RDO paid

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