Child pages
  • Leave calculations

You are viewing an old version of this page. View the current version.

Compare with Current View Page History

« Previous Version 5 Next »


 

 

Close

How satisfied are you with our online help?*

Just these help pages, not phone support or the product itself

0
1
2
3
4
5
Very dissatisfied
Very satisfied

Why did you give this rating?

Anything else you want to tell us about the help?

New Zealand only

 

The amount an employee is paid for leave is based on the amount they would usually receive on the day when they took leave. For example, an employee would receive a different hourly rate for leave on a day when they are usually paid more (for example, on a Sunday). Similarly, an employee would receive a different daily rate for leave depending on the number of hours they usually worked.

Note that leave rates include all pay that an employee would usually receive. This includes regular overtime and any commissions that would have been received if they had worked. For more information on holidays and leave, see the Department of Labor’s Holidays and leave guide (PDF viewer required).

There are several different calculations that can be used to calculate the rate an employee should be paid for leave. In all cases except for annual leave, you can choose which rate most accurately reflects the employee’s usual pay on this day. For annual leave, the highest rate is automatically selected.

You can edit some of the amounts in these leave calculations if required to get a more accurate value of what the employee usually earns on this day.

Annual leave rate calculation  x

Annual leave rates are based on weekly pay, which can be calculated in different ways. Weekly pay is the greater of Average weekly earnings or Ordinary weekly pay.

Note that the calculation giving the highest pay rate will be used for the employee’s annual leave pay. If this is not an accurate reflection, you can change some of the values used in the calculation to more accurately reflect what the employee should be paid.

A

Normal hours per week is set by default to the amount entered in the employee’s details. If this is not accurate, enter the number of hours your employee normally works per week.

This is used in some of the other calculations on this screen to determine the employee’s hourly rate for annual leave.

BAverage weekly earnings is the total amount earned over the last year, averaged over the number of weeks worked. If an employee hasn't worked a full year, you can edit the earnings and the number of weeks worked to get an accurate value.
COrdinary weekly pay is the amount the employee is usually paid each week. This includes any additional amounts that are usually included in the employee's pay, such as allowances, commissions or regular overtime. It doesn't include one-off or intermittent payments, such as bonuses or occasional overtime.
D

If the ordinary weekly pay figure doesn’t accurately reflect what your employee would normally earn, select this option to calculate the average over the last four weeks.

The Average of last 4 weeks gross earnings calculation includes all pay the employee has received over the last four weeks. If this includes amounts they would not ordinarily receive, such as occasional overtime, you can adjust the amount so that these are not included.

EThe hourly rate for annual leave is calculated using the highest weekly pay rate (calculated above), divided by the number of hours the employee normally works each week.

 

Personal leave rate calculation  x

Personal leave is calculated and paid on a per-day basis. Choose the calculation that best reflects the amount of pay your employee would normally receive on the day they took personal leave.

AYou need to enter the number of personal leave days your employee has taken. This is used in some of the other calculations on this screen to determine the total amount your employee is to be paid for their personal leave.
B

Relevant daily pay is the amount they would normally have received on the day. If necessary, you can change the hourly rate to reflect any different rate they might earn on that day (for example, if they were personal on a Sunday, they might receive a higher pay rate).

You can also enter the number of hours they would usually have worked, as well as any extras they would usually have earned on this day (such as regular overtime or allowances).

Only include extras that are normally included in their pay (for example, you shouldn't include occasional overtime.)

C

Average daily pay is calculated by averaging the total pay they've received in the last year over the total number of days they worked in this period. For example, if they usually work five days per week, they might have worked 260 days in the past year.

If they've been employed for less than a year, enter the number of days they've worked since starting their employment.

This calculation is often used when Relevant daily pay doesn’t give an accurate figure (for example, if an employee hasn’t been working for you very long, or if their schedule varies a lot).

DYou can also choose to set a daily amount if you already know how much the employee should be paid per day of personal leave. For example, the employee's employment agreement might specify a particular rate.
EOnce you’ve selected the calculation you want to use, this displays the amount that will appear on the pay run for this instance of personal leave.

 

Alternative holiday rate calculation  x

An alternative holiday is a holiday that an employee is entitled to take in exchange for working on a public holiday.

Pay for alternative holidays should reflect the amount your employee would normally receive for this day, if they had worked. You can choose the calculation that gives the most accurate pay.

AYou need to enter the number of alternative holiday days your employee has taken. This is used in some of the other calculations on this screen to determine the total amount your employee is to be paid for their alternative holidays.
BRelevant daily pay is the amount the employee would normally have received on the day, if they had worked. If necessary, you can change the default hourly rate to reflect any different rates they might earn on that day (for example, if their alternative holiday falls on a Sunday, they might receive a higher pay rate).

You can also enter the number of hours they would usually have worked, as well as any extras they would usually have earned on this day (such as regular overtime, commissions and allowances).

Only include extras that are normally included in their pay (for example, you shouldn't include occasional overtime.)

C

Average daily pay is calculated by averaging the total pay they've received in the last year over the total number of days they worked in this period. For example, if they usually work five days per week, they might have worked 260 days in the past year.

If they've been employed for less than a year, enter the number of days they've worked since starting their employment.

DYou can also choose to set a daily amount if you already know how much the employee should be paid for an alternative holiday. For example, the employee's employment agreement might specify a particular rate.
EOnce you’ve selected the calculation you want to use, this displays the amount that will appear on the pay run for this alternative holiday payment.

 

Public holiday rate calculation  x

This screen lets you calculate how much pay your employee should receive for a public holiday that they didn't work. The pay for a public holiday not worked (or ‘taken’) should reflect the amount your employee would normally receive for this day, if they had worked at their normal, non-public holiday rate. You can choose the calculation that gives the most accurate pay.

AEnter the number of public holidays your employee has taken off. This is used in some of the other calculations on this screen to determine the total amount your employee is to be paid for their public holidays.
B

Relevant daily pay is the amount they would normally have received on the day. If necessary, you can change the hourly rate to reflect any different rate they might earn on that day (for example, if the public holiday falls on a Sunday, they might receive a higher pay rate).

You can also enter the number of hours they would usually have worked, as well as any extras they would usually have earned on this day (such as regular overtime or allowances).

Only include extras that are normally included in their pay (for example, you shouldn't include occasional overtime.)

C

Average daily pay is calculated by averaging the total pay they've received in the last year over the total number of days they worked in this period. For example, if they usually work five days per week, they might have worked 260 days in the past year.

If they've been employed for less than a year, enter the number of days they've worked since starting their employment.

This calculation is often used when Relevant daily pay doesn’t give an accurate figure (for example, if an employee hasn’t been working for you very long, or if their schedule varies a lot).

DYou can also choose to set a daily amount if you already know how much the employee should be paid for a public holiday that they didn't work. For example, the employee's employment agreement might specify a particular rate.
EOnce you’ve selected the calculation you want to use, this displays the amount that will appear on the pay run for this public holiday payment.

 

Public holiday worked rate calculation  x

Use these calculations to figure out how much your employee would ordinarily have earned on this day, and then multiply it by 1.5 to calculate the public holiday pay. If you pay employees more than 1.5 times their normal wages for public holiday work, you can enter a set daily amount to account for this.

AEnter the number of public holiday days your employee has worked. This is used in some of the other calculations on this screen to determine the total amount your employee is to be paid for working on public holidays.
B

Relevant daily pay is the amount they would normally have received on the day, multiplied by the public holiday rate of 1.5.

If necessary, you can change the hourly rate to reflect any different rate they might earn on that day (for example, if the public holiday falls on a Sunday, they might receive a higher pay rate).

You can also enter the number of hours they would usually have worked, as well as any extras they would usually have earned on this day (such as regular overtime or allowances).

Only include extras that are normally included in their pay (for example, you shouldn't include occasional overtime.)

C

Average daily pay is calculated by averaging the total pay they've received in the last year over the total number of days they worked in this period. For example, if they usually work five days per week, they might have worked 260 days in the past year.

If they've been employed for less than a year, enter the number of days they've worked since starting their employment.

This calculation is often used when Relevant daily pay doesn’t give an accurate figure (for example, if an employee hasn’t been working for you very long, or if their schedule varies a lot).

DYou can also choose to set a daily amount if you already know how much the employee should be paid for a public holiday. For example, they may receive more than the usual 1.5 times their ordinary pay, or their contract might specify a particular rate.
EOnce you’ve selected the calculation you want to use, this displays the amount that will appear on the pay run for this public holiday payment.

 

Final pay calculation x

Use these calculations to figure out how much to pay your employee for their final pay when they stop working for you.

Final pay includes the employee’s full available annual leave and alternative holiday entitlements, plus the holiday pay percentage of gross earnings since their last annual leave anniversary (usually 8%).

Employees should also be paid for public holidays that fall on days they normally would have worked between their last day of work and the end of the period of annual leave being paid out.

Once you’ve paid the final pay, the employee will be inactivated.

AThe amount of annual leave due is the employee’s available annual leave entitlement, paid at their usual annual leave rate. You can view and edit the calculations that determine this rate by clicking on the rate. For more information about this rate, see Annual leave rate calculation.
B

An employee’s final pay needs to include payment for any public holidays that fall on days they normally would have worked, between their last day of work and the end of the period of annual leave being paid out. If required, enter the number of public holiday hours that should be included in the employee’s final pay.

You can view and edit the public holiday rate calculation by clicking on the rate. For more information about this rate, see Public holiday rate calculation.

CFinal pay should include payment for the employee’s alternative holiday entitlement. Enter the number of hours that the employee would normally work to make up the number of alternative holidays due. You can view and edit the rate at which these alternative holidays are paid by clicking on the rate. For more information about this rate, see Alternative holiday rate calculation.
DThe Value of holiday pay since anniversary calculation determines the value of the employee’s accrued holiday pay. This is calculated as their gross earnings since their last anniversary date (including the current pay run), multiplied by the holiday pay percentage.

 

 

Related Topics