Child pages
  • Recording time off in lieu of overtime

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

Compare with Current View Page History

« Previous Version 10 Current »


 

 

ANSWER ID:22799

Some employers allow employees to accrue time off in lieu of payment for overtime hours. In the past some users have used the Lieu - Alternative Holidays code to track these balances.

With the Holidays Act 2003 we recommend that the Alternative Holidays (Lieu) pay code is only used for Alternative Holidays as defined by the Act, in other words when employees work on a Statutory Holiday, or exercise their right to an alternative holiday under the act.

We recommend the use of a separate pay code (TOIL) and an accumulator to track other time off in lieu balances.

To use the TOIL pay code, ensure the employee's ordinary hours are set up in the Pay Defaults/Totals tab. Any hours entered into Enter pays over this amount will be automatically added to the TOIL accumulator.

 

Adding the TOIL pay code and an accumulator to an employee
  1. Go to the Maintenance command centre and click Maintain Employees.
  2. Click Select Employee.
  3. Click the applicable employee then click OK.
  4. Click the Pay Default/Totals tab.
  5. Click New (bottom-left corner).
  6. Click to select the TOIL pay code then click OK.


    The TOIL pay code is now added to the employee.

  7. Click the Accumulators tab. By adding the TOIL pay code to the employee, an accumulator will also have been added.
  8. If required, select the option to Show on Payslip.
  9. If the employee has already accrued time in lieu hours, enter the value in the Current Balance column. If the employee owes hours, enter this as a negative value.

  10. Click Close.

 

TOIL Pay Code

In this example, Megastar Ltd has an agreement that allows employees to accrue time off in lieu when they work overtime hours. Their employee, John, has worked his normal 40 hours plus another 4 hours of overtime which needs to be accrued as time off in lieu.

 

Accruing TOIL

In the employee's Enter Pays window:

  1. Enter 44 hours of ordinary time.
  2. The TOIL pay code will automatically be populated with the additional hours worked. (the negative entry accrues to the accumulator)
  3. Complete the pay as normal.
Using TOIL
In the employee's Enter Pays window:
  1. Enter the hours of Ordinary Time, for example 36.
  2. The TOIL pay code will automatically be populated with the hours taken in lieu. The accumulator balance will decrease by the lieu hours taken.
  3. Complete the pay as normal.
The Accumulator Balances Report in Payroll provides a full report of employee's current balances for any accumulators.
 
Related topics