Summary

The fixed method accrues leave for each employee by a 'fixed amount' each pay period. If an employee is a new starter or is terminating part-way through the pay period this 'fixed amount' is adjusted in respect of their employment start date or termination date in relation to the pay period and their last paid date.

Fixed accruals usually only occur in Standard pays. However if there is a related manual pay and the employee is a new starter or is terminating part-way through the pay period PayGlobal may calculate some adjustments to ensure that the accrual of the period overall is 'date effective'.

This method is recommended for employees whose days/hours of work never change. It is ideally suited to full time, salaried employees.

IMPORTANT: The accrual calculation requires the employee's "Last Paid" date to be populated for employees receiving their 2nd and subsequent pays.

If the employee's "Last paid" date is blank, the employee is treated as new employee. When implementing new PayGlobal customers or helping existing customers move existing employees from one database to another, the "Last paid" date must be populated to ensure accruals calculate correctly going forward.

Available in

This method of unit accrual is available for:

• Annual leave tables
• Sick leave tables
• Long service leave tables

Procedure

To calculate the total accrued units for the current leave period with Method of unit accrual as 'Fixed':

1. Determine the number of pay periods to be accrued (generally '1' unless there is a pay period override):
2. Determine whether the employee is:
   1. A new employee starting this pay.
   2. A current employee, that is not having an annual leave anniversary or terminating this pay.
   3. A current employee that is having an annual leave anniversary and is not terminating this pay
   4. An employee that is terminating this pay
3. Determine the accrued units for the pay

If scenario a:

• Accrued units this pay = Accrued rate per pay period * number of periods to accrue * (days or hours worked this period / days or hours profiled this period)

  NOTE: Days and hours worked this period are taken from the Pay Header record and PayGlobal uses whichever matches the Entitlement Unit on the employees annual leave table in the calculation.

If scenario b:

• Accrued units this pay = Accrued rate per pay period * number of periods to accrue

If scenario c:

• Accrued units this pay last year = Accrual rate per pay period * number of periods to accrue * proportion of the pay period prior to rollover
• Accrued units this pay this year = Accrual rate per pay period * number of periods to accrue * proportion of the pay period post rollover

  IMPORTANT: If the periods to accrue in the current pay header is greater than 1, PayGlobal will apportion the accrual based on the rollover pay's dates. Hence potentially employees may get more accrual in outstanding and advance than they would have if the pays had been open and closed over the periods to accrue date range.

If scenario d:

• Accrual rate per pay period * (days between period start date and termination date / days in the period)

Used when the termination date is inside the pay period and the last paid date is before the pay period start.

NOTE: If Last paid paid is empty, then period start date is substituted for employee start date

• Accrual rate per pay period * (days or hours worked this period / days or hours profiled this period)

Used when the termination date is outside the pay period and the last paid date is on before the pay period start OR Last paid date is empty

• Accrual rate per pay period * (days between last paid date and termination date -1 / days in the period)

Used when Last paid date is before the termination date AND Last paid date is after the pay period start date OR Last paid date is after the termination date

4. Compare current pay period accrual to maximum accrue units and use the lesser of Max accrued units per week or current pay period accrual from step 3

Note: The Entitlement Units is used as the annual maximum for the Fixed accrual method.

See also

Unit Accrual Methods