Updating Employee Annual Leave Values (NZ)

Employees | Payroll | Leave | Annual Leave tab

This table shows when the following employee Annual Leave tab fields are updated and for which AL payout type transactions.


Field	AL payout type	Update Conditions
Statutory payout unit balances
Maximum	Statutory	On Close Pay when Balance is greater than Outstanding
Paid	Statutory	On Close Pay when the pay contains Statutory AL Payout transactions
Balance	Statutory	On Close Pay when the pay contains Statutory AL Payout transactions
Statutory payout liability
Paid ($)	Statutory	On Close Pay when the pay contains Statutory AL Payout transactions or when you run Refresh Liabilities
Balance ($)	Statutory	On Close Pay or when you run Refresh Liabilities
Note: If you manually change an employee's annual leave table part-way through the year, then you should review their annual leave payout values.
Unit balances
Outstanding	Statutory, Non-statutory, None	On Close Pay when the pay contains annual leave transactions
Total accrued	Non-statutory, None	On Close Pay when the pay contains annual leave accruals
Total accrued taken	Non-statutory, None	On Close Pay when the pay contains annual leave transactions for AL payout type = "Non-statutory" or "None"

Important: All the above fields are updated when the employee's Annual Leave Table rolls over. Paid, Balance, Total accrued and Total accrued taken are reset to zero.

Calculation of Maximum on Rollover

When an employee's annual leave table rolls over on or after 01/04/2011, PayGlobal:

Resets the employee's statutory payout Maximum and Paid fields to zero.
Calculates the employee's statutory payout Maximum value for 1 week.
Note: When you process a pay, PayGlobal checks the employee's Start date to ensure that they have worked for at least 1 year before they become eligible for annual leave payouts.

However, the definition of '1 week' depends on how the employee accrues leave so PayGlobal uses the following process to calculate an employee's Maximum value for 1 week.

Depending on the employee's Length of service, PayGlobal uses annual leave table values from the Values tab or the Service tab.
PayGlobal determines whether the employee's annual leave table has Method of unit accrual = Proportional. Employees who are on proportional annual leave tables work variable hours so it is difficult to determine the value of '1 week' based on work patterns. As a result, PayGlobal uses the employee's leave accrual because it is the value of their annual accrual for a specific number of entitlement weeks:
1 week = Employee's Annual Leave tab | Total accrued divided by Annual Leave Table | Entitlement (weeks)
If the employee's annual leave table does not have Method of unit accrual = "Proportional", PayGlobal uses Entitlement (units) and Entitlement (weeks) values in the formula:
1 week = Entitlement (units) divided by Entitlement (weeks)

Note: Annual leave tables that do not use Method of unit accrual = "Rostered" or "Weekly Rostered" must contain Entitlement (weeks) values to calculate the statutory payout Maximum correctly.
If the Entitlement (weeks) or Entitlement (units) is zero, then PayGlobal uses the employee's profiled hours. This method is useful for "Rostered" and "Weekly Rostered" employees who do not have a fixed entitlement in their annual leave table, but accrue leave based on their rostered or profiled days of work.


Recalculation of Maximum on Pay Close			It is illegal to make statutory payouts from the employee's Total accrued. When you close a pay, PayGlobal checks whether the employee's statutory payout Balance is greater than their Outstanding value. If it is, PayGlobal recalculates the Maximum value: New Maximum = Current Maximum - (Balance - Outstanding)
Before Close						After Close
Outstanding	Maximum	Paid	Balance	AL taken during pay	Outstanding		Current Maximum	Paid	Balance	Outstanding minus Balance	New Maximum	Effect of Pay Closing
160	40	0	40	100	60		40	0	40	+20	40	Maximum not recalculated because Balance (40) is not greater than Outstanding (60)
100	40	0	40	100	0		40	0	40	-40	0	Maximum recalculated because Balance (40) is greater than Outstanding (0) New Maximum = 40 - (40 - 0)
110	40	20	20	100	10		40	20	20	-10	30	Maximum recalculated because Balance (20) is greater than Outstanding (10) New Maximum = 40 - (20 - 10)
100	40	40	0	100	0		40	40	0	0	40	Maximum not recalculated because Balance (0) is not greater than Outstanding (0)
100	40	45	-5	100	0		40	45	-5	- (-5)	40	Maximum not recalculated because Balance (-5) is not greater than Outstanding (0)

Updating Employee Annual Leave Values (NZ)

Calculation of Maximum on Rollover

Recalculation of Maximum on Pay Close