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https://help.myob.com/wiki/x/ia8HAQ
ANSWER ID:33060
Holiday pay is often paid in error when it's confused with annual leave. Here's the difference (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:
|
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. |
Determining how to fix it
Choose the solution based on your scenario:
Scenario 1: If the employee has not passed their anniversary since holiday pay was paid out.
Scenario 2: If the employee has passed their anniversary since the holiday pay was paid out.
Configure the Pay Codes
- Go to the Maintenance command centre and click Maintain Pay Codes.
- Select the 'HP' (Holiday Pay) Pay Code.
- Click the General tab.
- Select the Allow the rate to be modified when entering pay details option as shown below.
- Repeat steps 1 to 4 above for the Annual Leave ( ANHL) Pay Code.
Process the correction pay
- Go to the Prepare Pays command centre and click Enter Pays.
- Select (double-click) the employee whose pay requires correcting.
- Enter 1.00 in the Quantity field of the Holiday Pay ( HP) Pay Code.
- Enter -500.00 (minus 500.00) in the Rate field of the Holiday Pay ( HP) Pay Code.
- Enter the hours (Quantity) and the required Rate for the Annual Leave (ANHL) Pay Code, to work out how many hours this is take the dollar value that was paid out in HP and divide it by the current AL Rate. For example $500/$20 = 25 hours.
- Finalise this pay to correct the Pay Code balances.
Fix holiday pay
Establish the employee's Holiday Pay Due amount by multiplying their gross earnings (since their last holiday anniversary) by 8%, and entering this amount in the Holiday Pay Due field on the Leave Details tab.
To find the employee's gross earning since their last anniversary, run the Period Report by Employee/Pay Code (Summary).
Fix annual leave
Use the reports in Payroll to determine the annual leave an employee has taken, then work out what the employee would have been entitled to. You can then calculate the required adjustment to their annual leave balance.
Here's how to do it:
- Go to the Reports menu and choose Period Reports then choose by Pay Code Analysis.
- Select the following codes:
- Annual Leave (ANHL)
- Annual Leave Paid Out (ANHLCASH)
- Holiday Pay (HP)
- Click Next.
- Select the relevant employee then click Next.
- Leave all pay periods selected then click Finish.
- Click Preview or Print.
- Look through the report for the quantities for:
- Annual Leave (ANHL)
- Annual Leave Paid Out (ANHLCASH)
- Take note of the total dollar value for Holiday Pay (HP) and divide it by the Current Annual Leave rate to convert it into hours. This should have gone through as Annual Leave.
- Locate the employee's start date and work out how much leave they were entitled to. In the example below, we'll use a start date of 16/04/11. 16/04/11 to 16/04/12=160 hours 16/04/12 to 16/04/13=160 hours 16/04/13 to 16/04/14=160 hours 16/04/15 to current date=holiday pay In this example the employee is entitled to 480 hours (160 X 3) up until their last anniversary, less any annual leave already taken.
Enter the annual leave figure into the Annual Leave Due as at field. The correct total will transfer down to the Current Annual Leave Due field.
- Any annual leave taken since the employee's holiday anniversary date (and processed correctly through Payroll) will be accounted for in the Annual Leave taken since field.
- If the leave has been paid in advance, enter this as a negative value.
The annual leave balance will now be correct and you'll be able to continue processing your pays normally.