Leave entitlements include holiday leave, sick leave, long-service leave, RDO’s, etc. All entitlements are calculated in hours.
In most instances the entitlement is accrued as a percentage of normal time worked. When entitlements are paid (e.g. holidays are taken by an employee), the employee’s pay transaction should specify the number of hours taken. The employee’s accrued entitlement hours will then be automatically reduced by the number of hours paid.
The method of Entitlement calculations will differ between hourly (wage) employees and salary employees. MYOB is pre-set with two Entitlement categories suitable only for hourly employees:
Holiday Leave Accrual – calculated @ 7.6923% of gross hours worked (4 weeks leave)
Sick Leave Accrual – calculated @ 3.0769% of gross hours worked (8 days leave)
Additional categories should be setup for salary employees.
To create a new Entitlement category:
- Go to the Payroll Command Centre
- Choose Payroll Categories
- Select the Entitlements tab
- Click New
- Enter the Entitlement Name
- Choose the Calculation Basis:
User-Entered Amount Per Pay Period – if the amount varies regularly (the onus is on the operator to enter the accrued hours each week)
Percent Of – used only for employees paid on an hourly basis. Choose the wage category to calculate as a percentage of from the drop-down menu. If Gross Hours is chosen (recommended) click the Exempt button to exclude non-applicable categories
Hours Per – automatically accumulated every paid period, regardless of hours worked (suitable for salaried employees)
- Choose whether you want the current entitlements accrual balance to appear on the employees’ Pay Advice
- If this particular entitlement carries over from one year to the next, click Carry Remaining Entitlement Over To Next Year
- Select the Linked Wages Category from the drop-down list (e.g. Holiday Leave Accrual is linked to the Holiday Pay wages category)
- Click the Employee button to select with a tick employees who qualify for the entitlement
For further assistance: Contact Melanie Jenkins
Download this MYOB Help Sheet with accompanying images to assist you with each step below…