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https://help.myob.com/wiki/x/_gXW
ANSWER ID:4419
When employees take Annual Leave you should always pay it out using the Annual Holiday (ANHL) pay code.
Here's a brief overview - see the Department of Labour website for more information.
Holiday Pay | 8% of gross earnings since the employee's anniversary date. It rolls into Annual Leave once they reach the first/next anniversary and then it starts again at zero accumulating for the next year. Holiday pay is only ever paid out on two occasions:
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Annual Leave | An entitlement that all employees are entitled to which equates to at least four weeks' paid holidays per year. Employees receive their annual holiday entitlements on their first and subsequent anniversaries after starting work. |
This should be done even if an employee has not yet become entitled to Annual Leave. The payroll will then record this as annual leave taken in advance, in other words a negative value, as shown below.
Note: Any annual leave taken in advance will be deducted when the employee's anniversary is rolled or a final pay is prepared.
The Holiday Pay (HP) code is only used to record the accruing balance of Holiday Pay.
Holiday Pay should only be paid out in the following situations:
- To a casual employee. This may be paid out 'as they go', but this would need to be clearly stated in the employee's Individual Employment Agreement.
- When a 'final pay' is prepared. The software will calculate any Holiday Pay and Annual Leave owing to an employee when a 'final pay' is prepared.
FAQs
From 1 April 2007 all employees became entitled to 4 weeks Annual Leave and the percentage required for Holiday Pay accrual rose to 8%.
To ensure an employees' holiday pay accrues correctly, this percentage should appear in the Holiday Pay % field in the employees' Leave Details tab as shown below.
Note: If the employees are given an additional weeks leave, in other words 5 weeks, the percentage entered would need to be 10%.