Time off in lieu

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Some employers allow employees to take time off instead of being paid overtime. This is called time off in lieu.

MYOB Essentials can't currently track the accrual of time in lieu, but you can set up a new earning type so you can pay employees for time off in lieu.

Here's how:

To pay time in lieu

Go to the Payroll menu and choose Employees.
Click the employee's name.
Click the Earnings/Deductions tab.
Click Add Earning.
Set up the earning with a Rate of Per hour and the employee's regular hourly rate as the Amount.
Here's our example. Check with your accounting advisor or the ATO/IRD about whether leave or super/KiwiSaver should be calculated on your time in lieu payments.

When you pay the employee who uses their time in lieu, enter the Hours for Time in Lieu Paid. Remember to reduce their Normal hours by the same amount, otherwise they'll be overpaid.

This example shows 8 hours of paid time in lieu, and normal hours reduced from 38 to 30.

sample employee pay with 8 hours time in lieu and 30 normal hours

When paying time in lieu, use the Notes to appear on payslip field to let the employee know if they have any additional hours of time in lieu owing.

Related topics

Adding employees

Set up leave

From the community

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To pay time in lieu

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