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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.

  1. Depending on the employee's Length of service, PayGlobal uses annual leave table values from the Values tab or the Service tab.
  2. 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)

  3. 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.

  4. 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)