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MYOB Business with Payroll, Australia, only
MYOB Business uses leave pay items to track the hours of leave an employee accumulates.
When your file was upgraded from MYOB Essentials, default leave pay items were assigned to your employees.
These pay items ensure that leave is accrued and paid out at the same rate your employees received before the upgrade. There's nothing for you to set up, although you can customise these pay items if you want.
To see the default leave accrual pay items and to understand how they calculate accrued leave, click the relevant dropdown below.
An employee who is paid an annual salary:
with Annual leave – weeks (pro-rata):
How the pay item calculates leave accrued:
Weekly pay cycle : weeks entitled * hrs worked per week / 52
Fortnightly pay cycle : weeks entitled * hrs worked per week 26
- Monthly pay cycle : weeks entitled * hrs worked per week / 12
Example: a salaried employee who works 38 hours a week and is entitled to 4 weeks annual leave will accrue 2.923 hours of annual leave a week (4*38/52)
- Weekly pay cycle : hours entitled / 52
- Fortnightly pay cycle : hours entitled / 26
- Monthly pay cycle : hours entitled / 12
Example: a salaried employee who works 38 hours a week and is entitled to 152 hours annual leave will accrue 2.923 hours of annual leave a week (152/52)
How the pay item and calculation appears in the employee's Standard pay (see also Reviewing leave accruals)
An employee who is paid an annual salary:
with personal leave – hrs (pro-rata):
...is assigned this pay item in MYOB Business:
How the pay item calculates leave accrued:
Weekly pay cycle: weeks * hrs per week / 52
Fortnightly pay cycle : weeks * hrs per week 26
- Monthly pay cycle : weeks * hrs per week / 12
Example: a salaried employee who works 38 hours a week and is entitled to 76 hours personal leave will accrue 1.462 hours of personal leave a week (76/52)
How the pay item and calculation appears in the employee's Standard pay (see also Reviewing leave accruals):
An employee who is paid an hourly rate:
with Annual leave – weeks (pro-rata)
...is assigned this pay item in MYOB Business:
How the pay item calculates leave accrued:
- % of gross hours
- As your employees are entitled to the minimum 4 weeks of annual leave under the National Employment Standards, the pay item uses 7.6923%.
Example: an hourly employee who works 38 hours a week and is entitled to 4 weeks annual leave will accrue 2.923 hours of annual leave a week (38*7.923%)
How the pay item and calculation appears in the employee's Standard pay (see also Reviewing leave accruals):
An employee who is paid an hourly rate:
and Annual leave – hrs/year (fixed):
...is assigned this pay item in MYOB Business:
How the pay item calculates leave accrued:
- Weekly pay cycle : hours entitled / 52
- Fortnightly pay cycle : hours entitled / 26
- Monthly pay cycle : hours entitled / 12
Example: an hourly employee who works 38 hours a week and is entitled to 152 hours annual leave will accrue 2.923 hours of annual leave a week (152/52)
How the pay item and calculation appears in the employee's Standard pay (see also Reviewing leave accruals):
An employee who is paid an hourly rate:
with Personal leave – hrs (pro-rata):
...is assigned this pay item in MYOB Business
How the pay item calculates leave accrued:
% of gross hours
As your employees are entitled to the minimum 10 days of personal leave under the National Employment Standards, the pay item uses 3.8462%.
Example: an hourly employee who works 38 hours a week and is entitled to 76 hours personal leave will accrue 1.462 hours of personal leave a week (38*3.8462%)
How the pay item and calculation appears in the employee's Standard pay (see also Reviewing leave accruals):
Reviewing leave accruals
You can see the leave accrual pay items assigned to your employees in the Leave section of their Standard pay.
If an employee is assigned a leave accrual pay item with user entered amount calculation basis, you'll see a figure in the Hours column next to their leave accruals:
Click the name of the leave accrual to see how it's set up.
Any changes you make to a leave pay item affects all employees using that pay item.
Find out more about leave
For information on:
- how leave works in MYOB Business, see Set up leave
- what information is in Standard pay, see Review standard pay details
- minimum leave entitlements, see the Fair Work website.
Want to learn more about what's different in your new MYOB?
For more information on the upgrade of MYOB Essentials to MYOB Business:
visit our website: small businesses | MYOB Partners
check out the free training courses.